New Zealand is looking to make $100 worth of electronics cheaper than its domestic competitors.
Consumer guide reports that a consumer’s cost of a smart phone is likely to be between $1,100 and $1.5,000.
The report predicts that this could lead to more innovative, cheaper devices in New Zealand.
However, the report also suggests that some of these devices could be able to compete with Apple, Samsung, and Microsoft products in the marketplace.
This would be a significant blow to Apple, which has been making huge strides in its mobile device division, and to Samsung, which is facing its own challenges in its latest Galaxy S6 phone, and in the world of tablet computers.
The consumer guide also points to the growing importance of connected devices.
The device market has grown significantly in recent years, with more than 60 percent of smartphone users now using a connected device, up from around 40 percent five years ago.
This is despite the fact that these devices are largely controlled by the manufacturer.
“The current price of smart phones is a significant barrier to entry for new entrants and, with consumers increasingly buying more connected devices, it is unlikely to change,” the report says.
Consumer guide says the new low price of smartphones could be used to justify a higher price on other devicesThe consumer group argues that lower prices on connected devices could also be used by consumers to justify an increase in the price of their other devices, in order to push them into the “low-cost” category.
“The new low-cost price of devices such as smart watches, smartphones and tablet computers could also help to justify higher prices for other low-price devices such in smart TVs and home appliances,” the consumer guide says.
While the report doesn’t make predictions about what the new “low price” on smartphones would be, it does suggest that “higher prices on devices such the smartwatch, smartphones, and tablet computer” could be justified.
“In this case, consumers would be motivated to buy a new device at a lower price in order not to miss out on the value of the device,” the group says.
The consumer report comes after the Consumer Electronics Association warned that the price hike could be “unfair and harmful to the economy” and “threaten consumer confidence.”
The consumer lobby group said that the “unprecedented rise” in the cost of smartphone prices was driven by a “disconnect between consumers’ expectations and reality” and by a lack of competition.
“We believe that the new $100 minimum price is a major step forward to give consumers more choice and reduce the barriers to entry,” said Caroline Williams, CEO of the consumer group.
“It is good that this new low cost is not too high and it’s great that the Government is supporting these efforts.”
Consumer groups and politicians in New York, Boston, and other major US cities have also weighed in on the potential negative impact of the new minimum price.
“It’s not just about the consumer,” Senator Kirsten Gillibrand, a Democrat, said in a statement, “It’s also about whether we are going to be able, and willing, to invest in new technologies that are going be the future of our economy.”