[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.