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You seem to imply that in some pure, completely free phone market Apple would be priced out. Unfortunately, that market does not exist. So Apple understood the

• ZeroGravitas 16y ago
  A (relatively) free market for phones does exist globally, and Apple's first mover advantage (and the profits and marketshare it brings) is being rapidly diminished in a fairly textbook case of free market competition. I believe Tim Cook has gone on record about these price pressures. But that wasn't my point. My point was that people within the U.S. bubble seem to recognize on some level that they've got a weird market dynamic for smartphones. But they seem to think that this has only helped Android ("because it's free"), and hindered Apple. Which seems a bit odd to me, as outlined in my first post. I think people who are outside the bubble can understand this better since a) Android is doing well outside the bubble too, so we don't need to look for crazy excuses to explain this "anomaly" b) we have a better grasp on the distortions that those in the bubble experience because we have an outside perspective (e.g. Android phones are not actually "free", nor do iPhones cost $200).