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Amidst the smart phones competition heating up, Apple is not that worried, even with G1 hitting the market and offering apps galore. The reason could be that the iPhone brand has become a symbolic must-have among the populations. Therefore if the need arises it is felt that Apple could cut the price of its top selling brand to take command of the market. A research suggests that the average price of iPhone 3G in the summer was $666, giving Apple an approx. 50 percent gross margin on each sale, as well as a healthy subsidy from AT&T of $450. This in-turn would allow Apple wide space to adjust its price, where it could shift its 8GB iPhone price to $99, while still having a 42.3 percent margin. This would come as a heavy blow to competitors, turning the tables, and allowing the iPhone to rule all over again.

[via Electronista]