Talking tech since 2003

It seems like everyone’s gunning for Apple right now, and Google is no exception. Today, the company announced a new selection of products in their Nexus line. While there is much excitement to be had that there are three sizes to choose from — 4.7 inch phone, 7 inch tablet, or 10 inch tablet, the bigger news may be the prices. The new phone, the Nexus 4, starts at $299 without a contract. That’s right, no cellular contract for a $299 phone. Compare that to the $650 that an unlocked iPhone usually sells for.

The two tablets follow an expected price line, ranging between $199 and $499 depending on which size and specs you choose. The $299 Nexus 4 phone, though, only has 8 GB of storage, which is pretty small compared to other smart phones on the market. But if you get it with a contract (as T-Mobile will be offering), you can get the 16 GB version for $199.

Google seems to be following suit with Amazon in their efforts to compete with Apple. It’s as if both companies believe that they can’t win on design (or marketing) so they’re fighting with price. Even Microsoft-based devices seem to be taking this approach, with the Lumia 920 starting at $150.

While this might seem like a good idea, it must be noted that this is nothing new. Apple has always been the tech company to charge more for their products. For the last decade or so, it has worked. Apple makes high-quality products that are arguably worth the premium price. And let’s not forget the strong brand loyalty that Apple commands. They’ve spent more than ten years building up a following that is unlikely to be swayed by lower-priced alternatives.

But maybe it isn’t the goal of Microsoft, Google, or Amazon to unseat Apple. Maybe it’s just their goal to capitalize on a different space of tech consumers. In the end, this could lead to them competing more with each other than Apple.

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