$199 only

I posted a comment Matt Trivisonno's blog on an iPhone post he put up regarding the underpricing of the iPhone. Here it is...

I respectfully disagree with your take on the price of the iPhone. I was surprised to see the phone being priced at 199. My main concern was that if many phones were bought and unlocked, then there would be no recurring shared revenue for Apple. However, I can think of a few big reasons for why this price makes sense:
- The component prices have dropped substantially. I'm sure Apple has struck agreements with suppliers to drop costs promising exclusivity and volumes
- They are not coming from a position of dominance. I think Nokia, Samsung, etc. are hot on their trail and they want to have a captive audience. The phone is THE device of tomorrow. PC's are so last gen.
- See this post in Nytimes blogs. Looks like Apple will still be making a decent buck from the phone. Now I need to figure out how they will make sure it cannot be unlocked, or make it unworkable if it is.

I'm going to give it more thought and add a couple of more points to this. Note that although AAPL dropped yesterday, it recovered pretty nicely today and is mightily outperforming GOOG, etc. from the lows. I think yesterday was sell the news, force buyout of the callers (there P/C ratio for AAPL was heavily skewed to the call side)

PS: Ppl..i need this to be more collaborative if I'm going to have the enthu to keep it going. Please comment and/or publicize.