I bought these through an internet auction site for a very reasonable fee, so that will affect my view on these slightly as I've not paid RRP.
 
I am more than happy with the quality of sound that these put out from my iPhone. The soundstage picks out the individual instruments and puts them together very well with a good measure of bass (which was my main requirement for purchase). I have a varied taste in music, but is mostly rock/alternative and it plays these very effectively with even the acoustic versions coming through with great clarity. I have trained as a sound engineer, and have a good audible range in my hearing so was expecting to be able to pick out issues, but have been very pleasantly surprised.
 
I do not have a $500 version to compare this to as yet, so I may yet amend my view if/when I add to my collection, but I am more than happy with this purchase.