Verizon’s iPhone-rival Motorola Droid has been out for only a few weeks and it’s already seeing price cuts from some retailers.
Verizon is still selling the phone for $200, but Amazon.com has a new Droid with contract for $150. Dell is taking the aggressive stance and offering the Droid for $120.
Does this mean the Droid is a flop? No. Verizon’s most important sales period will be the month before Christmas and the week after it — not right now.
And anyway, most phone sales go direct through carrier stores (or retail affiliates). This is simply a few third-party distributors further subsidizing the Droid’s price against the bounty they get for selling phone contracts.