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Here in Vietnam where the yearly average income is still under $2000 USD everybody wants an iPhone. Perfectly capable Android phones are widely available but the iPhone is the public status signal everybody is chasing. Maybe this is a cultural thing but if people in other developing countries are similarly willing to buy such an extravagantly expensive device just to keep up with the Joneses next door the value proposition of cheaper Android phones may not be so strong. By all accounts Apple still has a lot of room to cut prices but stay in the black too.

I think this says more about branding and sociology than actual value proposition.

That's my point exactly. Even in poor countries branding may trump economy and undercut Android's price advantage.

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