Is this what you are predicting for the smartphone arena? Having the hardware at increasingly lower prices in order to make money on the app sales?
Surely, this is the only logical conclusion if Nokia move into an app store-like closed marketplace?
Now, we have tons of carrier-subsidized phones that come with a service contract. (You get a cheap phone, but you have to pay $80/month for the next couple years.) That seems to be where the money is in phones.