[kgelner]

"but guess who will win in the emerging markets like China, India and Brazil."

The one with the best mobile OS?

Unless Microsoft buys Palm, it's not Microsoft.

Sure iPhones are expensive now - but older ones will start reducing in price for markets like India/China - and the iPhone has very good internationalization support, along with a virtual keyboard that is far better at adapting to languages like Chinese for input.

You speak of long term but you are only looking at iPhone prices today instead of the fundametals.