Of course not, but many of those people are repeat customers upgrading which is fine as those sales are just as real as new customers. It's the reason Apple has done as well as it has in America, people spend more on their phones here, especially with the subsidy/contract model in place.
Human beings will spend 450 20 dollar at a time no problem but 450 out of pocket is a lot different psychologically speaking so it make sense that Apple is struggling in places where phones are bought out of pocket.
My preliminary math shows about 9 million iPhones sold in America out of the 31 million sold in total around the world last quarter.
Apple's iPhone sales have increased each year... so it's not just repeat customers.
2010 iPhone sales: 39.9 million
2011 iPhone sales: 72.3 million
2012 iPhone sales: 125 million
I wouldn't necessarily say the iPhone is "struggling" in places where phones are bought out of pocket. It only makes sense that phones below $450 (and many well below $200) will sell more than the iPhone.
Yeah Apple won't get the unit sales trophy... but whatever phones they
do sell will earn them a pretty penny. You can consider Apple a low-volume, high-margin vendor.
Going back to one of your earlier comments... I believe Apple
does look at the industry around them.
I'm sure Tim Cook is well aware that you can buy a smartphone in some countries for $150
But that's not a market they want to be in.
Remember Steve Job's "we can't ship junk" speech?
Link
Steve basically defines Apple's product strategy: "
Our goal is to make the best [products] in the world and to make products that we are proud to sell and would recommend to our family and friends"
"
There are some products in our industry that we would not be proud to ship. We can't do it... we just can't ship junk"
That's actually a refreshing philosophy. Apple acknowledges certain types of products and chooses not to make them.
So does that mean all these other companies
knowingly make crappy products? That can't be good...