That's true, but why is that a significant problem for Apple? They're already being slammed by some pundits because the iPhone GS 'might' be reducing their average selling price. You others are slamming them for not selling into the ultra low-end. The real question is do they have a viable, long term sustainable business and market presence.
Hence why Apple is trying to bride their way into India with their 2nd hand and refurbished devices.