The brutal reality in the age of a $200 Apple (AAPL) iPhone: Inferior gadgets won’t be able to sell for nearly as much as they used to.
For example, do you know anyone who’d buy this $149 Helio Ocean 2 from Virgin Mobile — which will go on sale on Feb. 12 — instead of buying an iPhone? We don’t.
And it’s not like Virgin Mobile (VM) is even offering significantly cheaper service than AT&T (T) charges for the iPhone: Helio service starts at $65 per month, just $5 less than AT&T charges for iPhone plans.
Sure, the mobile market is plenty big, and there’s some room for phones like the Ocean 2. But probably not for $150.