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I find it interesting that phones never got cheaper but now they are more useful so large number of people actually consider 1000$ to be ok price to pay for one.

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They did, there are completely usable phones in the 100-200euros segment, which do at least 2/3 of what the 1k ones do, albeit more slowly.

Yes, it's a great example of a Pareto distribution where 20% of the price gives you 80% of the features.

Sure there are decent smart phones that only costs 100 euros, but I was referring to the fact that in 1996 communicator was deemed too expensive for consumer market, but now top of the line iphones sell huge volumes.

Phones have become so important in our lives. In 1996, you never needed the internet to do anything, as our society was based on other technologies. People could live their lives without the internet, or even without a mobile phone and it would be no problem at all.

Now the internet, and increasingly mobile internet is becoming the default way of accessing almost any service, so having a phone that works for you is something that people are ready to pay for. You end up using it so much, that people feel like it's not a waste of money.

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