Yes, and apparently what you got with the early iPhones wasn't necessarily enough to justify the high prices, hence the quick and notable price reductions.
I have several friends that bought on launch day. They complained it was an expensive purchase. But, it didn't stop them from making it. So, while the broader public definitely thought it was expensive. There was enough early adopters to take the plunge and pony up the money for it. And as time went on. The lines to purchase on launch day only got bigger.
I would argue the price had to be higher than all other options out there. Mainly to separate the iPhone from the pack (Premium product). Price matters when it comes to making a purchase of course, and many will scoff at the initial price and just dismiss it out of hand. But, for the large audience (Apple fans and Apple users). It's not as important. It may delay a purchase or alter other purchases so they can get this device. Many of us are just that way where that price is a secondary thing. Which is why I feel confidently that Apple will sell a million of the Vision Pro's in the first year. We want the device, period. There will be price drop. Could be early or late in the product cycle. But I don't think Apple is looking at this product any differently from the iPhone. They know it's a better product, and it should command a higher price than the competition. If any price adjustments need to be made, so be it. But, they have to set the bar and find out what the market and appetite for it is.
When you consider inflation and factor in that those early iPhone prices were with 2 year AT&T contracts, even by today's standards (much better and more capable phones) those launch prices were high. $499 (4GB) or $599 (8GB) would be around $735 or $880 in today’s dollars. You can get a better and larger 64GB iPhone SE for just $429 or a much better and much larger 128GB iPhone 14 for $829, both without any carrier contract requirements. Throw in today’s various carrier "deals" (and commitments) and net prices can go down a lot from there.
Moores law on the hardware side. Which accelerated much faster than inflation (target inflation is 2% where Moores law is 100% every what 18 or 24 months). I would say it's basically flat if not a touch higher priced today. Now, you can get models that didn't exist back then like the SE or even older model phones like the 12 and or 13. But primarily speaking you're spending a little more today for the equivalent top end from then. Not including say the Pro Max.
Ballmer's poor handling of Microsoft's phone business, including the purchase of Nokia's device business, was a major contributor to his exit in 2014.
In a world where Apple doesn't exist. He's most likely right. We would have had a few more years of "business" class devices with email(BB or Active Sync exchange), messaging (BBM), and crap internet surfing. And on the other end, basic cell phones with maybe larger screens and with the ability to store music on them. Cameras would have improved but most likely not at the same pace. Again with an iPhone not in the picture.
Eventually, maybe a Samsung or Motorola would have come up with a more consumer friendly device running Android. Big keyboard, and big screen. With decent web browsing, GPS-Maps, good cameras, and content. And it would have cost $499.
