Stable prices are crucial in the Mobile Device business. For operators, retailers, distributors and ofcourse customers. A dyamic market and short lifecycles demand stable prices. What iPhone did with there prices is dumb and hurts them not only now but certainly in the future. I made some pictures to illustrate the effect. Every phone has an optimal lifecycle. Optimal meaning total turnover(margin) at it’s peak. To reach this optimal point you need innovators and early adopters to get in soon. Buy the product immediately when it is available. Unstable prices create delayed purchases: waiting when the next pricepoint is reached.