Well put. The US carrier subsidy is 350-400. That means a 3GS is still $350-400, so it is still not competitive with $150 unsubsidized android phones. With the 20% tax in china, why would I pay $500 for a 3GS when I can buy a 4S for around $750, or a low end android for $200.
The iPhone is 200 with contract, 450-500 without. They're certainly not paying the retail 500, I'm sure it costs them 430-470, making the subsidy more in the range of 250-300.
In the US there are less than 10 resellers, and it is well known that the average wholesale price for an iphone is $650. Of course there is different model mix in that number, but it is not close to $430. Notice that sprint made a commitment to buy 30.5 million iphones, and at current prices is estimated to be $20 billion. That comes out to $655.
Where do you get the 430-470 number? I am happy to be corrected, but I need some evidence.
I apologize. This is the 3rd time I have subtracted one hundred dollars from the cost of the iPhone.
I first purchased mine overseas where, because of the exchange rate, I spent 500 "moneys" on it, and this is the 3rd time that impression has bitten me in the ass. I stand corrected.
