When I say they lost money by only making one phone, I am referring to lost opportunity for additional customers. Considering how many phones are out with Android and some of them have very slight differences, it is proof that consumers want choices. /QUOTE]
While true, it's probably overstated. Some people buy phones on the "look", but I think the majority are actually buying the OS (and for VZW for some time, and still Sprint, Android was the only choice). Sure, we'll choose one phone over the other for relatively immaterial reasons, but don't expect a lot of platform switching.
Obviously a keyboard and/or some different screen sizes would increase sales, and there's always something to be said for more options spurring demand, but a lot of it would just cannibalize existing IPhone sales. Just like the huge crush of sales and switchers never materialzied with the VZW IPhone, most people who wanted an IPhone bought one, even if it wasn't perfect and even if it was AT&T. The fact their marketshare has remained remarkably consistent even as the market has grown rapidly tells me the brand trumps all - specs and styling don't matter (not saying it isn't very good) they just want an IPhone (or it makes more sense being locked into ITunes). It matters far more with Android because there's no such ubiquitous brand (outside of, perhaps, the Galaxy line in Korea) - if they want sales they have to differentiate, although a lot probably sell just by virtue of a customer walking into a store and going for the latest.
The key difference here is Apples strategy has always been one or a few models and convince people it's a product for everyone, rather than try to create products for different people. What other companies attempt to do with complete product lines Apple tries to pre-empt with marketing. And it works, for them.
