Note there's a difference between "analysts" (as in, Wall Street) and "pundits" (as in, gizmodo). The analysts actually do a much better job than the pundits (which really tells you something about how bad the pundits do!)
I had kind of hoped that Apple would have kept it around at a lower price in developing markets to gain market share. But perhaps Apple is thinking that the iPod Touch is the better way to attract people to the ecosystem at a lower price. Plus, I'm sure there will be plenty of used iPhones sold at discounted prices around the world, which can also help expand the user base.
I actually do think it's reasonable to believe that somebody will pick an iPhone instead of a cheap android phone as their first smartphone. For example, I'm sure that when my niece and nephew are old enough to get smart phones, they'll get iPhones -- their family has the money and they already like Apple products. But that issue aside, I think it's interesting to note the massive difference between the U.S. and the rest of the world. The iPhone is the dominant...
It's interesting to think about this in the context of the story from yesterday in which somebody said the iPhone 5 will add to growth. If the iPhone 5 just shifts demand from those other companies to Apple, then the net effect on growth could be very small.
This is a nice lesson in macro-economics and aggregate demand.