It appears that we were a bit off on that prediction. Ireland's Independent has already raised concerns about the high pricing of the Irish iPhone, which is even more expensive that the UK version. So it seems that Apple are continuing to favour high margins over high volume - at least for the time being. The company seems unconcerned by the harm that this kind of media attention could do to its brand.
Given Apple's recent response to the European Commission's intervention on iTunes pricing, we wonder whether the same principle applies to mobile handsets as well. Time will tell.