Horace Dediu on the iPhone's value to the market:
Therefore, how to tell whether a product is over-serving a market is one of the most important and frequently asked questions I get asked. [...]
If you have to add features and drop prices at the same time then it’s likely that the market does not value the improvement. [...]
As the product has been improved along these dimensions, sales have increased and prices have held steady (even rising occasionally.)
As per usual the entire post is great. I especially like to see how each of the original iPhone's features (display, storage, ram, camera, cpu, etc) have been improved over the years.