Apple’s chief operating officer Timothy Cook compared the iPhone to other cellphones on the market, responding to recent claims that the iPhone is too expensive:
A lot of people pay zero for a cellphone. Guess why. That’s what it’s worth.
This will be a big piece of the Apple story for years to come. If we offer something that has tremendous value, that is sort of this thing people didn’t have in their consciousness – it was not imaginable – then I think there’s a whole bunch of people that will pay $499, $599.
Cook also said Apple believes it will sell at least 10 million iPhones this year.
I agree that the iPhone is very much unlike, say, a Motorola RAZR that you pick up for free with a 2 year contract. $499/$599 is pricey but I think a lot of people will be willing to pay that price – at first – for new, sophisticated technology. What do you think?