Sure similar specced phones cost similar amounts, but with Android I can choose slightly lesser specs a lot less money in a way I can't the iPhone. Even the cheapest iPhone they still sell (3gs 8GB) is $100 more than some pretty good Android phones like the HTC One V, Samsung S plus or Sony Xperia Arc S and 3 times the price (unlocked) of a cheap Android phone (for example a Samsung Galaxy Mini or Galaxy Y or ZTE Blade). And when I buy an unlocked phone I don't get screwed on the contract, saving me even more money in the long run. Sure those cheap phones are technically not as good as the iPhone, but they're still fully functional smart phones that do everything many people need and want.