Understanding Apple’s iPhone ASP

Apple’s ASP defies the logic and assumptions so many have built up over the years. In fact, I could argue the smartphone, in general, is continuing to defy the logic of many but even within the smartphone market, the common sentiment (note I did not say common wisdom) was that the market would commoditize like all consumer electronics categories do as good enough products and low-priced products and vast competition in the lower price tiers would create a race to the bottom.