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CNN Money has an article about this very issue. Google’s android-based phone is 10% cheaper to build than the iPhone. What does that mean? Phones that are cheaper to manufacture give their makers the opportunity to be price competitive. Think about it. If iPhone cots $199, and a phone that has all the basic features a smartphone needs to have is going for $49, which one would you buy?

I know, I would still go with the iPhone. No one i arguing that any phone is better than the iPhone. The problem is that most analysts believe that this year is going to be the worst for retailers and gadget makers as people are keeping a tight hand on their pockets.

Apple did adjust their forecasts for the future quarters, and that shows that Apple, too, is somewhat vulnerable, so I expect Apple to cut their costs in the next quarter or so to make iPhone more profitable for them and more affordable for folks.