Many smartphone users out there believe that the iPhone is an expensive smartphone, and to be honest it is, but as they say you get what you pay for when it comes to tech and quality, but many would also say there are cheaper costing handsets available with just as good tech if not better, and cost is probably why many have turned from iOS to Android and the like.

According to the guys over at Money.msn, the Apple iPhone starts off at $199 and rises the more storage you require and during the holiday quarter Apple snagged and average of $659 per iPhone.

Carriers obviously subsidise the iPhone to the turn of more than 300-bucks because they know they’ll get it back by holding the customer to a two-year agreement and retailers also get hurt when a customer opts for an iPhone over a high margin Android device.

Apparently though over in the US Android handsets don’t sell for much less than the iPhone, but step abroad where the iPhone isn’t subsidised as much and the chances are you’ll be able to grab an Android smartphone for less than the $680 cost of the iPhone 4S.

Apple sold a huge 37 million iPhone units last quarter so someone is definitely buying no matter the price, but Apple’s premium pricing is leaving a wide open door for Android especially in Europe.

Having said that, no doubt Apple’s huge faithful following will continue to purchase the iPhone no matter what the cost even if Apple doesn’t deliver on the latest technology as evidenced with the release of the iPhone 4S.

Back in the day when the first mobile phone, which was by Motorola, had a price tag of around $3,995, the Motorola DynaTAC 8000X did not have all the smartphone technology you see today and yet people say prices are expensive now.

Having said that, as the Motorola DynaTAC 8000X was the first mobile phone it commanded a hefty price tag, but as tech evolved consonants became smaller and cheaper and people began to jump aboard the mobile phone bandwagon, and that is why today’s smartphones cost less than the first original device.

So basically all this is leading to this question, we’d like to ask our readers if they believe the cost of an iPhone is way too expensive and if so why, and do you think with Android growing in popularity Apple should deliver a cheaper version of the iPhone?