It appears that Verizon is going to keep up the old business model of nickel and diming it’s customers to death with the Motorola Droid, their flagship device, by charging $15 extra a month for MS Exchange support.  The net seems to be amazed by this; that Big Red is actually going to charge their customers more for services that they want to use. The real problem that the Droid is going to face won’t be pricing, it will be targeting.

More of the same, nothing to see here

Verizon is tied with AT&T for the most expensive plans in America as Sprint and T Mobile duke it out for the best price (value would be the wrong word here, at least in my area). Verizon has consistently charged the same amount of money for all smartphone data plans and add-ons; $29.99 for “unlimited” data plan on top of a $39.99 or higher voice plan and $15 extra for Exchange support (for Business accounts). This isn’t anything new and for consumers to think that “things will be different” now that Verizon is more “open and loving” with Android, they better think again or stay with Sprint or T Mobile.

Consumer Phone? The Droid?

This isn’t the only news with this story, something that struck me odd was that Brenda Raney, a spokeswoman for Verizon, said that the Droid is “a consumer phone.” The comment was used to explain that most consumers won’t be using Exchange and since the Droid is a “consumer phone” that customers need not worry about the higher priced data plan.

This is where Verizon is not thinking clearly and may really miss the target market with the Droid. From every review of the device that I have obsessively read, the Droid is not for a “typical” consumer. A “typical” consumer phone would be something that is user friendly like the iPhone. The Droid is not a phone that one can just pick up and instantly know what they are doing. For geeks the phone is great but this isn’t a “consumer” phone.  Anyone can take a look at the Droid commercials and understand that this phone isn’t targeted to everyone. Not everyone cares about “open development” let alone even know what the hell it means.

The Real Problem

The Exchange pricing for the Droid is not the real story here, the story is the misconception of what Verizon thinks that the Droid actually is. If Verizon keeps this kind of attitude towards the Droid, that it is an iPhone “killer” and a consumer phone, they are going to seriously frustrate a ton of customers that want a phone that can play cool games and play their latest MP3s. Verizon needs to recognize and appreciate the Droid for what it is, a smartphone with a lot of power and a large learning curve for standard consumers.

Can normal consumers use the Droid without frustation?

So, of course the net was filled with an Android splattered passion that almost felt like hystery, or maybe it was just me. Anyways the Motorola Droid will be released on the Verizon network for $199.99 with a two year contract and your soul.  Here is what is not about the Droid and why it was a geek frenzy today:

• Full (landscape) QWERTY, slide-out keyboard
• 3.7″ touch screen (bigger than iPhone’s w/ higher resolution)
• Android 2.0 (Google’s open source mobile operating system)
• FREE Google turn-by-turn GPS (beta of course)
• “thinnest full QWERTY slider” – .53″
• dockable – can be turned into a GPS or alarm-clock/media-unit (see the video for a better description)

Here are all of the links related to the new Moto Droid that give exhaustive critiques. As reviews come up in the next couple of days I will add them here:

• Motorola Droid (PC World)
• Motorola Droid first hands-on! (Engadget)
• Motorola Droid unboxing! (Engadget)
• Motorola Droid First Hands On: It’s a Terminator (Gizmodo)
• Google Maps Navigation: A Free, Ass-Kicking, Turn-by-Turn Mobile App (Gizmodo)
• Motorola Droid Live Review (CNET)
• Motorola DROID review (Engadget)

And that’s the best of the best for right now.

One more thing

There is something I have to say about Android in general and it is the reason that I tend to write about and get excited over it. It’s the fact that Android, more so than any other phone OS is open. Ever since I understood what Linux and open source software stood for a number of years ago, I have had a fixation with any thing that is open and inherently “hackable”.

The future of Android is in any and all of the devlopers hands and I don’t mean just Google developers. This system is open to all coders and do they ever take advantage of it. If you are interested in the Android project check out Android Developers. They are doing awesome things there and without that group, user experiences like that of the upcoming Motorola droid would not exist.

With the refresh of the iMac and the “lower-end” MacBook last week it seems that Apple has once again disregarded the idea that a cheaper option in the Mac family is needed. Most Mac enthusiasts are touting that the $999.99 white, plastic,  unibody MacBook is a “great value” and that this is a great price point for entrance into the Mac family.  With the release of Windows 7 the web is full of insane deals on new notebooks, netbooks, and desktops that are damn good. Does Apple need to do something about the “middle-of-the-road” consumer line who wants quality but not at a premium cost.

The Tablet Argument

Most analysts are saying that the tablet is coming (yes, they are still talking about it) and that the tablet will be the device that finishes the Mac family. On, average most analysts speculate a $700 dollar price tag. They say that it will be bigger than an iPod Touch yet smaller than a MacBook; physically and monetarily in the middle of the road. But, for $700 you could get a sweet Windows 7 machine with the same specs as a $999.99 MacBook.

Although $700 is a good price for a decently powered notebook, a tablet priced at that amount seems, well, sort of useless to the common consumer. Apple will once again have to create the need for this device, the same way that they have created the need for the iPod and iPhone in the past, and you better believe that consumers will buy it even if it isn’t a netbook.

Apple products aren’t cheap, because Apple isn’t cheap

Just because every other company has to charge less for more product does not mean that Apple does. In fact Apple has convinced us that what they give consumers is a premium experience and in return they expect a premium profit.

Apple has and will continue to convince consumers that their products are hands down the best on the market. Not just with clever marketing but with price. They will continue to keep their prices relatively high compared to any competitor. This helps make the consumer feel that he has purchased a product that is different, cool, and so much more valuable than the other guys.