Frankly, the only reason why the iPhone (and smartphones in general) have major marketshare in the US is because people don't have to pay full price for the device. If people had to pay full price for it (iPhone 4 8GB: $549; iPhone 4S 16GB: $649, 32GB: $749, 64GB: $849), there'd be a lot less people using the iPhone.
Meanwhile, you can buy low-end Android phones for as low as $100 without contract.
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