Commoditization of iPhone

Sprint Nextel Corp. is set to become the second U.S. mobile-phone carrier to offer Apple Inc.'s iPhone on a pay-as-you-go basis.

Sprint will announce this week it will offer the popular smartphone on its Virgin Mobile pay-as-you-go brand as soon as July 1, according to people familiar with the company's plans. The Overland Park, Kan., carrier follows Leap Wireless International Inc. in selling the device with prepaid service.

That's plain simple commoditization of iPhone. Commoditization drives down prices. I am sure going with these companies will soon impact Apple's profitability. The differentiation iPhone was able to bring wth the early innovation has gone now with Android and Windows Phone making similar strides in innovating further and the broad reach to masses in case of Android. Apple recognizes that it is now a volume game or else they lose that market to Android or Windows Phone. This until the next Innovation Apple or its peers are able to effect.