IPhone May Have Trouble Elsewhere

Apple's iPhone is holding its own against the Android onslaught in the U.S. IPhones sell for about $600. In the U.S., about $400 of that purchase price is paid by the telephone carrier in exchange for a two-year service contract. But in other countries carrier subsidies are low or non-existent, and in some of these countries the iPhone is just too expensive to compete well. This is especially true in Europe, where some economies are in a recession, and consumers are strapped.

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