I suppose there may be a bunch of crappy Android phones, floating around under my personal radar, available for even less than $100. That sounds like false economy to me. If you're gonna get soaked for $2400 in cellular bills over two years you might as well spend the extra 1-4% and do so in style.
Of course, this is a USA perspective. Things are probably very different outside the USA.
The experience is STUNNING with excellent performance and more features than I've yet had a chance to grok fully. It's definitely the most exciting computer I've used for a long time.
Yes, here in Italy it's pretty common to find phones that are unlocked, and full price. I saw a 3gs at the store for 600 Euro the other day. Android phones are also pretty expensive, but not quite to those levels.
Overall, I like seeing the full price as it helps you to compare phones, not phones + whatever wonky plan they're trying to sell.
It sure does make you wonder why Verizon is charging as much as AT&T for their Android plans when the device is almost half the cost. I guess the answer is because they can, because they have a better network. I also wonder if Android handset vendors will try to get a cheaper plan out of Verizon when the Verizon iPhone supposedly lands this summer/fall...
Gross margin on Apple products has consistently been around 33%, at least for as long as I've been listening to their quarterly conference calls.
The unsubsidized N1 costs $1700 over two years compared to ~$2500. If you factor in the cost of the contract, the difference is huge.
Where does this assertion come from. Apple has produced a processor that does a great job at conserving battery life. Nothing that I have seen leads me to believe that Apple has the tech/experience to 'get raw graphics performance while simultaneously preserving battery life.'
1990: DOS on your choice of hardware or lock into Apple hardware & software at a higher price.
2000: Windows on your choice of hardware or lock into Apple hardware & software at a higher price.
2010: Android on your choice of hardware or lock into Apple hardware & software at a higher price.