@Stephen 10 & RichyS & jecrawford
I don't think you and I actually have any disagreement. My point was that RichyS' comment was idiotic, because he assumed that the only reason people would buy an Android device over an iPhone was because they couldn't afford an iPhone. I was pointing out that the common costs to acquire each phone are comparable. Being as the average user will accept a contract, the contract price seems to be the most appropriate comparison. GIven your comment that the Droid seems to mop the floor with the iPhone 3GS, it seems clear to me that the reasons people would buy an Android over an iPhone extend quite a bit beyond affordability.
Yes, I picked pretty much the top end Droid phone. I also picked the top end iPhone that pricing is listed for, so I'm not sure that gives you anything. Secondly, Verizon's buy one get one free deal is because they released the Incredible, thereby decreasing demand for what could be considered the "previous gen" droid leader. Likewise, for the price of an iPhone 3GS, you could buy two previous gen iPhones.
Yes there are much cheaper Droid phones out there, but your initial comment doesn't make that relevant. Your implication was that the only reason someone would buy an Android phone over an iPhone is because they can't afford an iPhone. My point was that if someone can buy a Droid, they can buy an iPhone - therefore, if your implication is true, the Droid should have sold HORRIBLY. It didn't, and therefore, your implication is crap. You may have MEANT that the only reason someone would buy an old G1 is because they can't afford an iPhone, and were that the case, I might have even agreed with you, but that's not what you wrote.
Two for one is a way to move excess inventory, caused in this case by the release of a better, faster, stronger Android phone (HTC Incredible).
When you have too much product sitting in your inventory, and it's not selling very well, would you rather:
a) let excess inventory (for which you have already incurred costs) sit on the shelf, or
b) discount the excess inventory to move the product (thereby receiving revenue).
The choice seems pretty simple to me.