It's my opinion most of us have thresholds of price to value when we buy consumer products. Exceed that threshold and that product doesn't get bought by that customer. Same for the iphone. If the iphone no longer offers you a good price to value ratio, you make a decision.This quote from Tim pisses me off...
Translation: we can keep putting prices up and the idiots will keep paying! lol! Makes me want to start thinking about alternatives to the Apple walled garden (and I say this as someone who's been fully into iPhones/iOS since the first phone).