[netcan]

I would add another point to that. Until a few years ago Apple built relatively expensive products and tried to make them good enough that buyers would want them enough to pay more. With Macs and to some extent with iPods that let Apple collect a nice big share of the market's profits, but not much of the marketshare.

Now, they've learned to make products price competitive without sacrificing quality or much of their profits. iPhones and iPads are not a more expensive option. They stay well away from the low end, but they are not expensive relative to the competing products especially those with similar specs.

Thats a whole other kind of strategy ('penetration' they called it at Uni) and maybe they're bringing it to the mac.

[jsnell]

iPhones clearly are a more expensive option. It's just that in some markets the cost difference is hidden from the final customers, with the operator eating the difference. An unlocked 3GS (three years old!) costs about as much as an unlocked Galaxy Nexus.

Now, clearly some people place enough value on iOS that they're willing to pay the comparatively expensive prices (or move to another carrier that subsidizes the iPhone sufficiently). Good for them. And good for Apple that they're able to sell phones at absolutely staggering margins without anyone grumbling about the cost. But let's not pretend they're competing on price.