Apple has gathered such a massive and loyal following that it's going to be tough to lure away consumers with a cheaper version of the iPhone. They shouldn't be worried about consumers going elsewhere, but instead how convert the rest of the lot. People are willing to pay extra for the quality and that's why Apple has so many fans in the first place.
Jobs went a little overboard when he was sending those emails to Schmidt. I can understand his frustration because nobody wants to be stolen from, but Apple is in such a powerful place that he can afford to lose some employees to other companies. There's also that fight of geometric proportions. Apple believes they have a right to sue other corporations for "stealing" the shape of their cell phones. I acknowledge the fact that Apple wants their products to be unique, but that's ridiculous. It's not even that great of an idea and they should just let it go. There are many reasons to file lawsuits against other corporations, but they are just being petty at this point. Apple is near the top and they're going to be there for a while so they had better get used to other companies trying to replicate their formula.
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