Re: This report is complete and utter rubbish (NOT REALLY)
>Have you noticed that Mercedes came out with a C Class that starts at $29,900 USD?
There was a reason for that: The BMW 3 Series.
It turns out that a large number of people who buy luxury cars tend to be very brand loyal, once they start buying a particular brand they tend not to switch unless they have a really bad experience (or they have sufficient money to own several cars - a guy from Bentley once told me that they were typically the sixth car in someone's garage).
BMW started at the bottom end of the market (with things like the three-wheeled isetta) and worked their way up. Mercedes were at the top end of the market and have gradually moved down.
Why? Because the lower priced cars get "ordinary" people in to the brand and generally they work their way up. In the 1980's BMW's 3-Series acted as a feeder for the 5-Series and the 7-Series. Mercedes cheapest model was twice the price and once people were in BMWs they had to have a bad experience to even look at something else.
In order to counter this, Mercedes started with the C190 and then as that still wasn't an low enough rung on the ladder, they followed that up with the A-Class.
AFAIK, the mobile phone market doesn't really inspire quite the same brand loyalty at this point. I doubt there are many people buying a cheap Samsung who would automatically upgrade to mid-range Samsung next time rather than any other Android phone. A lot of people still just take whatever phone their operator offers them for free.
So, unfortunately, not a terribly good analogy.