"You're looking back. Looking forward, there are more capable phones selling for less. "
There's always been competition, yet iPhone ASP has been incredibly consistent. I have not seen evidence that there's any new pricing pressure. Maybe that changes in the future. I'd guess little effect in the near term, as I suspect pricing is covered in most of the carrier contracts.
"I like the rumor that Apple might release a streaming music service. Not because I think they'll make substantial money from the service itself... they'd have a hard time catching up to Pandora, SXM, etc., but because they could use it as an opportunity to monetize their traffic. If they used Google's platform to monetize the traffic and keep the lion's share for themselves, they could add substantial high-margin income."
I mentioned this before, and I'd like to get your take. Horace Dediu has done some calculations to determine that each iTunes account holder spends about $40/yr. That seems to be a pretty good, existing monetization scheme, doesn't it? For comparison, Google once mentioned that they were targetting $10/yr per smartphone user as a revenue goal...
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