What I am saying is that 5 years ago a 1 GB video card would have cost around $300. Today I can buy a 4 GB video card for under $200. That 1 GB card would have been just as "state of the art" in 2008 as a 4 GB card would be today.
Or a Sony DVD player would have cost $200 in 2008. Today a Sony BD player is about $80. Once again with a TV; I paid $400 for a 32" 3 years ago, today the same TV would be $250. The TV would also be 1080p today as opposed to the 720p model I bought back then. (comparing similar levels of "state of the art.")
So in a similar fashon, the iPhone 5s costs $700, and 4 years ago an iPhone 3GS would have also cost $700. So even though in each of my examples the current device is technically better than the older version, the dollar for dollar cost is lower. (Leaving inflation out of the picture.) $700 was the going rate for a good smartphone 4 years ago; whereas today I have seen plently of options in the $400 range.
I actually don't have nearly as much of an issue with the 5s being $700. My issue is that Apple had a chance to offer us lower priced phones, and I think they dropped the ball. Now people looking at phones might consider other options. Even the people who don't care about unlocked might see a Nexus 5 for $0 on a $60 plan, and compare it with a 5c for $99 on a $70 plan. Now that Nexus is $300 cheaper over 2 years. Maybe that isn't worth some of the nice things that come with iPhone.
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