It’s the first one. Apple packed a ridiculous amount of ultra powerful stuff in it. As the article says they may find out that they don’t need some of that stuff. Also we know that everything gets cheaper overtime.

And Apple put an absolute ridiculous amount of money into designing and building that thing and they’re trying to recoup some of that. But by version two or three a lot more of it will have already been recouped and it won’t be as necessary to keep the prices high.

The first color televisions, cell phones, refrigerators, computers, and microwave ovens were not exactly cheap either.

The price will come down.