[PierceJoy]

> Because you and I both know Apple will never be price-competitive with the commodity segment.

OG iPhone: $799

iPhone 3G: $199

> They are a luxury brand that relies on luxury margins, so I want to know why their business model will succeed.

Apple has shown many times over they don't need to be price competitive with the commodity segment. If you want to know why their business model will succeed, why not just look at their current business model which has been massively successful? Arguably the most successful business model in the history of consumer hardware.