[anactofgod]

> "The iPhone is also a subsidized product and it seems very successful. How come it won? The answer is in details."

One of the other relevant details is that any subsidies that are provided are done so by the wireless carriers, not Apple. Apple gets paid in full for each iOS device sold, either by the carrier (iPhones), or by the customer direct (the other iOS devices). By being immediately profitable on each iOS device, Apple has no "subsidy variables" to factor into its profitability -v- product lifecycle calculations.