Just like iPods, there should be a variety of iPhones that Apple should come up with. Also, they can just keep adding models every year and retaining its predecessor. This would give Apple more ground in the mobile market share. That way, there could be features (video, un-assisted GPS, tetherablility etc etc) to differentiate between models. Do you think selling at a subsidized price is the major reason, Apple is gaining extensive mobile market share. I myself bought the 2g 16Gb for $499 back then. Any comments/suggestions welcome.