This is actually a really good point. One of the things that distinguishes the Apple of today vs. the one in 1985 (which also had a dominant industry position and fantastic products) is that they're also competing on price. The iPhone 4 is available with contract at $99, the same price charged for very similar (often somewhat inferior) hardware from mass market asian manufacturers like LG or HTC. (The 3GS is actually available free with contract, though IMHO it competes poorly with the competing Android phones.)

That's pretty impressive for an R&D focused company.