So if Apple was to charge $799 for an 64GB Iphone 6 with a two-year contract, I would still buy it, even if Samsung Galaxy went to $99 with a two-year contract.
It is because of this that Apple will make even more money, because they have room to raise their prices even more.
One of my financial rules-of-thumb is “a dollar a day”: if I can get the cost down to that, it’s a no-brainer easy buy, I’ll get my money’s worth out of it (be it business or pleasure).
Apple devices, given their practical longevity, work out to a dollar a day for something I use every day, aggregate of hours per day.
If it costs a dollar a day, it’s not overpriced.