How will Android beat a Verizon iPhone? Sub-$50 price tags

By Christopher Dawson | November 11, 2010, 11:53am PST

I’m not alone in wondering how Google will continue to beat Apple in the smartphone race when the iPhone comes to Verizon. After all, the iPhone alone on a mediocre network is giving Android’s myriad handsets on all major carriers a run for their money, even when you combine all Android sales numbers. However, announcements from both Verizon and T-Mobile make it abundantly clear precisely how they plan to ensure Android’s dominance: price.

The Motorola Citrus launched today at $49.99 after rebate. It’s only running Android 2.1 and you won’t confuse it with a Droid X, but the pricing and eco-friendly branding (it’s made of 25% recycled materials) will ensure that a lot of Citrus phones become Christmas gifts.

T-Mobile is taking this approach about $40 further with 2 sub-$50 Android phones and 2 (the T-Mobile Comet and LG Optimus) that are free with a 2-year contract if you purchase them online. This isn’t a case of carriers trying to dump unwanted Blackberries or Palm Pre’s. This is what eWeek called “a great democratization” created by Android devices. Furthermore, Verizon now offers data plans for as low as $15 a month and T-Mobile’s unlimited web plans are priced very aggressively.

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