> but you had to have business to afford it.
This was a marketing and perception issue, not a price issue. When the original iPhone came out, I had a very nice blackberry, with a personal plan, effectively unlimited data, and the full blackberry suite (minus corporate integration, obviously). And I think it was less expensive than the iPhone plan. But it was a pain in the neck! I had to pick the correct phone plan, add the correct data supplement, negotiate the correct discount (basically everyone was eligible for a discount, but you had to find your particular reason for being eligible in a ridiculous menu), and then convince the sales person to add the special $3.99/mo supplement for blackberry services. It clearly never occurred to anyone involved that this was not a competent way to sell to consumers!
I did make fun of my friends for paying several dollars more per month for a device with no keyboard, no GPS, slower data, less efficient text input, and dramatically worse performance in marginal network conditions.
When I finally switched to an iPhone 3G, I could do real in the browser, but wow, the ability to make phone calls was seriously downgraded. I feel like my old blackberry may have had the best behaved cellular modem of any smart device I’ve ever owned.
I think that, if RIM had gotten YouTube and a music player working, had improved the web browser, and stuck a capacitive touch sensor on their device, and if they had marketed it competently (make it so that customers could walk into a store, pay $55/mo, and walk away with a working device without a fight!), they might have remained competitive.