Economics Do Not Lie

What does it mean to own an iPhone?

They're almost a month out now, and you can by them, readily, for $500 retail. When someone pulls them out in public, they're a superstar in the room -- the sudden silent attention of every eye.

And not just every eye, but every other designer in the world, too, such as Louis Vitton, who now makes cases to put the iPhone in (see them
Here ) for $225-$1120.

What? The case costs twice as much as the iPhone? So the thing meant to protect the iPhone and extend its life (presumably) is twice as much as the thing itself. In other words, you could wear the iPhone out, throw it away, and by another, and then another, and that's when you'd break even with just buying the case to protect the first one. Does this make economic sense? Only if the iPhone is more valuable than its price indicates.