Margins
The problem for Apple is that raising its top-end price by 500 dollars merely doubles its existing $500 margin, say. For its cheaper Android competitors, doing the same knocks their slimmer $100 margin up by a factor of five. Instead of having to sell five times as many to make the same profit as Apple, they now only have to sell twice as many. Not sure how smart Apple are being here.
Biting the hand that feeds IT
