I don't see your point. Compare the unsubsidized prices of the iPhone to its competitors and it's not huge (iPhone 5 is $649.99 and the Samsung Galaxy S3 is $54

I don't see your point. Compare the unsubsidized prices of the iPhone to its competitors and it's not huge (iPhone 5 is $649.99 and the Samsung Galaxy S3 is $549.99), but that's because carriers want the iPhone and are willing to pay a large subsidy. The iPod touch is very competitive, it has been around for years with pretty much zero competition. iPods were very competitive for years, again primarily with no one being able to compete. The iPad has always been competitively priced. I doubt the iPad Air will be as competitive in price as the others, I just don't see a $199 level, but I do not agree that Apple is not competitively priced in mobile.