Apple&#x27;s $650 flagship will probably continue to do fine. But the $450 phones really got a lot of mileage from being &quot;free.&quot; If you were buying a phone in 2012 from a normal contract carrier, there really wasn&#x27;t any way to pay less than $450, because $450 was $0.<p>With real pricing, a $350 phone is $100 less, and anyone who was considering buying a two-year-old phone to save $200 is probably very interested in saving another $100.