The reason iPhone 3G is dramatically "cheaper" (for the phone itself, not necessarily the accompanying plan):
http://bits.blogs.nytimes.com/2008/...9-iphone-10-more-per-month-for-data/#comments
The biggest news from Apple is what Steve Jobs didn’t say: It has completely changed the basis of its deals with AT&T and other wireless carriers.
According to a press release from AT&T, the carrier will no longer give a portion of monthly usage fees to Apple. Instead carriers will pay Apple a subsidy for each phone sold, in order to bring the price from $399 down to $199 for the 8 Gigabyte model. The company did not specify the amount of the subsidy. Subsidies of $200 to $300 are common in the industry.
What is more, consumers will now pay $30 a month for unlimited data service from AT&T, compared to $20 under the plan introduced last year. So even though the phone will now cost $200, consumers will be out more cash at the end of a two-year contract compared to the previous deal.
Of course, that includes faster 3G data service, so the price increase may be worth it. But we should call it an iPhone price increase, not a cut.
http://bits.blogs.nytimes.com/2008/...9-iphone-10-more-per-month-for-data/#comments