In the year 2012, after a blockbuster fourth quarter, Tim Cook, Apple’s chief executive, said the iPhone 4S accounted for the majority of iPhone sales. This statement took on added significance considering that at the time, the iPhone 3GS was free with a two-year contract, and the iPhone 4 cost $100. Even in a down economy and with a free iPhone in its portfolio, Apple still managed to sell the expensive, newer 4S to many of its customers.

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