Check out Nokia. It is no mystery the path to broad market adoption is to target a broader, wider audience. Yes, the cool phones will sell well (just look at the N95- the Nokia flagship that sports an even higher pricetag than the iPhone), but that’s not how you win the war. iPod is able to claim its market penetration number in no small part to the nano and the shuffle. Nokia is a leader becaues of the semi-disposable phones they push in emerging markets.
Now where is that darned iPhone shuffle?