This is one dimensional thinking. It takes more than just lower price to make a product as appealing as Apple (or RIM's offering). A plain 'ol smartphone doesn't take what it takes to conquer the market, imho. RIM has all the real-time enterprise messaging angle covered. They do their lock-ins one enterprise at a time. And on the iPhone? - iPod (yes, the media player on the iphone is called the ipod and gives 100% functionality of an ipod). - AppStore - iTunes (+Store) integration - There's the brand thing - Good design and functionality that appeals to the masses.