One thing that occurred to me, after reading it. Q: Who would pay five hundred dollars for an iPhone? A: All the trendy people who want to stay ahead of the Joneses.
It’s more or less common practice to price new gadgets very high, and then bring the price down after a while. I think that probably makes them more desirable. You can be the first person on your block to own one. And soon people will be saying, “Wow! $400 for an iPhone! Last month it was $500!”
The Nokia N95 goes for $675 and up with careful shopping.
http://reviews.cnet.com/Nokia_N95/4014-6452_7-32085029.html?tag=pop