Earlier quoted context omitted.
> The iPhone is $200. The cheapest new iPhone on sale (the iPhone 4) is $450. If you think it costs less, that's because you have let Apple and the carriers fool you. The cheapest Android, meanwhile, is less than $100. Even better, you can even get a new Galaxy Nexus for $100 less than the cheapest new iPhone.
Fool me? What are you talking about? If I get a S3 or an iPhone 5 via AT&T, the cost will be the same over 2 years. So what you're really saying is, if I get an iPhone on contract, I'm getting more hardware for my dollar?
Second, I'm saying that the true cost of an iPhone is usually greater than they true cost of the typical Android phone they're matched up against. In AT&T's case the apparent cost of ownership looks the same because they pay larger subsidies to Apple than they pay to Android OEMs. This works differently on other carriers (especially prepaid and overseas carriers) where the headline cost-of-ownership changes depending on the phone you buy.
Third, I'm saying you end up paying the true cost of your phone one way or another regardless of what the headline prices look like. In AT&T's case, I'd say they recoup the larger subsidy with things like stricter unlocking policies and changing app restrictions (e.g. FaceTime, tethering, ...).
Fourth, I'm very much not saying you get more hardware for your dollar by buying an iPhone. From what I recall of the estimated component costs, I think the hardware costs are roughly equivalent between competing phones (and if you insisted on picking a "bang for the buck" winner, you'd end up on the Android side most of the time). Apple's high margins and profits come from somewhere, after all.