http://www.ft.com/cms/s/0/78f27c3a-3655-11dd-8bb8-0000779fd2ac.html
Sukgu's comment - Apple's differentiation policy that enabled the company to command higher price with its' brand premium has set to change to get wider range of users. In other words, it can be translated into Apple's iPhone doesn't have the special offerings that the customers can feel to pay the additional money for this. As product lifecycle has been shorted, it looks very difficult to maintain once built-up brand premium for a long time.
Apple on Monday sought to boost the limited appeal of its acclaimed, but modestly selling, iPhone as it announced that new models would sell for as little as half the price of the first version.
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