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>And in contrast to Apple tradition, they priced the iPhone at a level that made it impossible for new entrants to compete on price in a meaningful way, due to the nature of carrier subsidies.

Then why did they reduce the price by $200 after a few months on the market?

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To keep it that way?

Once they've verified that they can actually produce it a low price and at scale, and after having been paid by a significant chunk of the population that had paid the higher price, they made a move that made their product viable to a much larger population, and made it harder for others to compete. That's completely in line with the GPs claims.

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