It`s all about marketing. Look at the new iPhone for instance. What does it offer more than the old one? 3G. That`s it. Something that nobody in the US will use really(or a few people) considering the phone is equipped with wireless. How much does it cost? 200$? No. 200$ is how you think you pay. 2 year contract, 80$ per month, what`s the cheap part? That makes him really expensive, over 1200$(compared to the ordinary contract prices). And still, there are QUEUES in front of the Apple stores. And it does virtually NOTHING more to offer than the old iPhone.