Yeah, that&#x27;s an interesting observation. I&#x27;ve long thought that Apple benefited from the 2-year contract model more than any other manufacturer. The 2-year contract hides the actual cost of the phone, so an iPhone sells for $199 just like an LG. Who buys a Honda when a Mercedes costs the same?<p>Buying a phone for its real price puts the cost&#x2F;benefit front and center to the consumer. Maybe an iPhone isn&#x27;t worth an extra $200 after all?  This puts Apple in a bind as they either have to drop the phones price or provide greater value for their price point.