Android

But the iPhone and iPad aren't priced at a premium.

Anyway, it's a mistake pit Google against Apple. The real battle will be between Google and Microsoft for the exact same hardware manufacturers and sales channels. (Meanwhile, you can buy an iPad from an Apple Store or from Walmart without any carrier involvement).

Google hasn't managed the fragmentation problem very well, they haven't done enough to control the quality the Android OS between carriers and manufacturers, and they've utterly mismanaged the Android Market. I'm no fan of Microsoft or WinMo 7, but I expect Microsoft to do a much better job at addressing all of those issues.

Microsoft can also leverage their Zune desktop software.

And Microsoft's development tools are generally very popular with developers. I've done some work with WPF and I found it very impressive and I would expect their Phone SDK to be of similar quality. On the other hand, even though I generally like Java I'm finding the move from iPhone development to Android development to be a depressing step backwards both in terms of the dev tools and especially the SDK.

Then again, it is Microsoft we're talking about. It may take them another 3 or 6 years to get it right.

You might well be right on the iPad, the $200 Android tablets mentioned in this blog post are probably total crap. But the iPhone is clearly priced at a premium, 20-30% more than the models with comparable hardware from other phone manufacturers.

Note that I'm not complaining. Apple is free to price their goods however they want, and if they can price the iPhone at a massive premium and still sell tons, that's great for them. I'm sure other phone makers would love to have similar margins.

I hate to say this, but it seems common to compare price based on the hardware alone. Good software and good design cost money too. A lot of money. You pay for the development, testing, and design of all the prototypes discarded before the one you get.

Android phone vendors save a lot on the development of the system because Google and many others paid for it. And frankly, based on the make of the majority of Android phones, I don't think they spend as much as Apple on the design part either. That might explain the 20~30% "premium". You get what you paid for.

I don't understand why you're putting scare-quotes around '"premium"'. Apple do a lot of things very well, have a great brand, and unlike most of their competitors haven't been totally commoditized. That allows them to sell the iPhone and Macs at a high premium compared to the competitors. As a result they are ridiculously profitable while most other phone and PC manufacturers range from making a loss to making a modest profit.

(And actually Apple spends stunningly little on R&D compared to it's peers. There was a rather nice graph about this that I can't find, but e.g. Microsoft and Nokia spend an order of magnitude more on R&D than Apple does, while seemingly getting just a fraction of the results.)