Stocx

The iPhone: Lessons on Industry Pricing Power

Your price power comparison ("from $500 and $600 launch models, to the present $99 to $299") is neglecting is the fact that the original phones were un-subsidized and the lower priced 3Gx phones have a $200 subsidy.

So, a fairer price comparison would be $499 and $599 on the original iPhones down to $299 to $499 for the current lineup.

Not such a loss in price power.

BTW... the subsidy is coming from AT&T not Apple.

Is the iPhone SDK 3.0 Really All That?

Disclosure: Whiner.