Earlier quoted context omitted.
GP claimed iOS was "free". Can't be both free, and the phone only costs its parts. GP also said to cover cost of app store in the phone, despite only costing its parts. I consider iOS to be one of the iPhone's parts. I don't understand why machinery engineered from metal is so different from that engineered from bits, that I must consider them two products instead of one. Metal, glass, silicon, bits: one PDA applianc…
This is economics. The price of a product in a competitive market tends to its marginal cost -- the cost to produce one additional unit. The marginal cost of an iPhone is $450 in parts and labor. The R&D costs are fixed costs, not marginal costs, they don't vary whether you sell 1 million iPhones or 10 million iPhones. Most of iOS's costs are fixed. Even if you amortize the cost of it across the number of phones sold…
People have been paying a premium for Apple’s goods for forty years. Instead of complaining about the evilness of Apple, maybe the problem is the incompetence of the rest of the market to make something compelling.