Here at Inflation Watch, we spend most of our time talking about rising prices, but there are some sectors of the economy in which prices are falling. Historically, one of those sectors has been technology (e.g. computers). Thus, it is not surprising that cell phones and cell phone plans are becoming more affordable. Wal-Mart now offers a plan with unlimited minutes for just $45 per month. Larger carriers are lowering their prices.
This device is not a phone, but offers free e-mail service for life for less than $300. This is a pretty amazing deal, especially if (like me) you prefer e-mail to talking on the phone.
24/7 Wall Street says cell phone prices may drop much further:
Imagine if Google wanted the mobile web ad market so much that it just gave the phones away for ad-maximization. Or imagine if things got so tight that Steve Jobs started giving away iPhones for free, if you buy a Mac. Those are far from likely, but something in the middle might not be. That is why they call price wars a race to zero.