Apple's ASP and the difference between cost and value

[iMore.com]

There's an incredible difference between what something costs and how much value we derive from it. Apple's success hinges on their understanding of this ? we'll pay more for something that we believe makes our lives better. Sometimes "better" is prestige or cachet, sometimes it's adrenalin or excitement, sometimes its time saved or work accomplished. Often it's a mix. Yet it's what led Apple not only to record profits this quarter, but to the record average sales prices (ASP) behind them.
Apple's ASP for the iPhone went from $637 last year to $687 this year, an increase of $50.

Full story from the iMore Blog...