The reason that the iPhone is popular in the US, in spite of its very high price, is that consumers don't see the price---it's hidden behind the carrier's contract subsidy. Basically, you have taken out a two-year loan to pay the $600-$800 price (minus your down payment) for the phone with the payments included in your monthly bill.
In countries that don't use contract mobile phone plans (like most of Europe), most consumers are unwilling to pay $600-$800 for an iPhone when they can get an Android phone for less than $200, even if they do believe that the iPhone is better.
Basically, Apple is at it again, making a premium product at a premium price, only this time most (US) consumers don't understand how much more they are actually paying. From both an Apple investor and an iOS developer, how sustainable do you think this is?
Here is story from the Wall Street Journal on how actually having to pay for the phone up front has affected iPhone sales in Europe.
