iPhone 3G have been officialy announced on June 9. The retail price is $199 for the 8GB and $299 for the 16GB version. Truth is the device pretty much costs like the first one.
Yes the price is $199 but with 24-month or 18-month contract. The lowest plan will cost you around $60/month for 18months. Simple math 18x$60 = $1080 + $199 = $1279, that is a lot of money for mobile phone.
Start month price is $40, additional 3G plan needed to use 3G/HSDPA internet is at least $30. So if you live in US, $1680 minimum (24 months contract), without 3G plans is $960.
Add to that $199.
In Italy, Vodafone will retail iPhone for 500 euro – 8GB and 570 euro – 16GB version this is without monthly fees and no contract ( pre-paid cards ).
So this $199 is market trick.