It's the same price as the 32 GB iP5 on AT&T, which a very large portion of the American public was able to afford. Compared to the overpriced iP5, where you're paying primarily for the Apple logo, this purchase actually gets you ground-breaking hardware. Whether people will do the same for the L1020 is just a question of how it is sold in stores:
Sales staff:
"You want a smartphone with a good camera? Well, take a look at this. It's the Lumia 1020. The camera in this baby is in a league of its own! Amazingly, the camera is actually better than any of the point-and-shoot cameras some people still use. It even rivals some of the larger and more expensive camera models. However, just take a moment to appreciate how it's still "smartphone sized" and not "camera sized"! That means everyone can comfortably take this with them wherever they go. For people who want their photographs to look professional, rather than just good, but don't want to carry a dedicated camera around with them, this is a game changer. It's effectively two devices in one. It's a camera,
and it's a reliable and easy to use smartphone. If you're also one of those people that appreciate great image quality, possibly even contemplated purchasing a real point-and-shoot in the next two years, then getting this device can save you hundreds of dollars. It's a smart deal, because you're getting us (AT&T) to subsidize your camera purchase along with your smartphone purchase. Would that interest you?"
The GS4 and iPhone can get away with $249, $299, whatever, because they've earned that reputation.
Yes, and as ridiculous as it sounds, that reputation is earned, first and foremost, by launching a higher priced device! What is and what isn't too expensive is a matter of consumer perception and frame of reference. Factually, the iP5 was and still is the most overpriced consumer electronics product ever produced. Their margins far exceed their competition's. The L1020 is factually the much better deal. After all, we're not really paying for the plastic and silicon that went into building it, but rather the costs associated with optics and materials research. No other company invests that amount of research dollars, and Nokia deserves a return on that investment. That goes beyond what most consumers are aware of, but considering that, it is a fair price. At least for now. If Nokia can't communicate that, then they must learn or fail. Better to start learning now.