Verizon's Droid Eris May Sell for Under $100

[Ed Hardy]

Verizon is going to release its first Android-powered smartphone, the Motorola Droid, early next month, and it's apparently going to have a companion, which will reportedly be a less expensive model dubbed the HTC Droid Eris.

Verizon itself has said virtually nothing about this device, but HTC's CEO Peter Chou has promised that this U.S. carrier will release one of its Android-based phones in the first week of November.

This model was briefly shown off by Verizon and Google at an event early this month (see image at left), revealing that it will be a tablet-shaped device that's apparently a version of the HTC Hero.

Entry-Level Price
The HTC Droid Eris has been expected to sell for less than the Motorola Droid, and an new unconfirmed report backs this up. HTC's model will supposedly cost $99 with two-year contract, while Motorola's has been priced at $200 with contract.

This would give Verizon one of the most affordable Android models on the market.

Droid vs. Droid Eris
Verizon's first two devices running Google's mobile operating system will have very different designs.

The HTC Droid Eris will have an 3.2-inch HVGA screen, and an on-screen keyboard rather than a physical one. It will use HTC's proprietary Sense user interface.

The Motorola Droid, on the other hand, will be a slider, with a landscape-oriented QWERTY keyboard. It will have a 3.7-inch, 854-by-480-pixel (WVGA+) capacitive touchscreen with haptic feedback,a nd use Google's default user interface.

Still they will have much in common, including support for Verizon's EV-DO Rev. A mobile broadband service, Wi-Fi, microSD card slots, and 5 megapixel cameras.

Android Inside
Both these smartphones will run Google's OS, with the Droid sporting Android 2.0. The Droid Eris, on the other hand, will almost certainly debut with Android 1.6 -- HTC is still porting its Sense UI to the latest OS version.

Both will come with a suite of applications that can wirelessly synchronize with this company's services, including Gmail, Calendar, Contacts, and Maps. They will also include video and audio software.

In addition to consumer e-mail services, these devices will offer Exchange ActiveSync, allowing users to access their work e-mail.

Source: gdtg

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[Antoine Wright]

The device cost of connected devices is being subsidized heavily by carriers; either the market is about to change, or the value of tracked, connected usage is such that the device price doesn't matter anymore. Interesting...

[questionfear]

Originally Posted by AWright

The device cost of connected devices is being subsidized heavily by carriers; either the market is about to change, or the value of tracked, connected usage is such that the device price doesn't matter anymore. Interesting...

I am guessing it is the latter. Having a dependable, accountable stream of revenue (typically ~100/month) from as many subscribers as possible is worth the deeper subsidy. Especially because even with number portability people can be easily persuaded to go for the next big thing on the same carrier. And IIRC people with smartphones tend to generally spend more across the board for unlimited data, texting, etc which is really where the carrier is interested in making money.

Also, the base price for devices is dropping, even in the unlocked market, so that is probably contributing a bit too.