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Because the 3G is technically $399 and $499.
The prices are subsidized when you sign a 2 year contract (this is true with any other smart phone like Blackberry, Tilt, etc.), making it $199 and $299.
The 3G iPhone looks different, has a 3G radio (so you surf the web more than twice as fast), and has GPS.
Generally Apple has upgraded the features of a product but kept the price the same. It’s true in this case too.
Subsidizing is the carrier’s choice. It still is technically $399 and $499, but because you are required to sign a 2 year contract anyway, we’ll probably never see those prices.
I think the price drop is apple’s answer to market to a bigger pool of people. The other reason for the first iphone mega price tag is the fact that it was such a new device, now touch screens are everywhere.
The differences between the two, I believe, are enormous. The 3G network is so much beter than Edge and for me GPS would be extremely useful. iPhone 2.0 also has push email, etc and has a variety of new features for business users. The new update (which will be available for old models) includes, most importantly, the new apps. Having games on the iPhone will make people use the phone more than they currently do. There are also a lot of little details that you can find on apple’s website.
Altho the iphone 3g is cheaper – the difference of $200 is more than made up in the change in at&t contract price from $60 per month to $70 per month yielding an adiitional $240 over the two year contract. So in essence the cost of the 3g is more.
I think you have been getting some wrong info, the new iphone coming out on June 11th, will be 199 for the 8 GB and 299 for the 16 GB one, the price drop was to get more people to buy the phone.
Because after 2 years, you’ll still end up paying &250 more for the new iphone because of the new data plan. This is a way for apple to trick dumb customers.
Apple wanted to get more customers so they dropped the price. Sucks for everyone else who has the original one. And the new 3G one has GPS, slimmer case in either black or white.
The Phone
Communicating with your friends, family and business associates has never been easier. Making a call is as simple as tapping a name or number on your contact list. Listening to Voicemail? You can choose which order you listen to your message with Visual Voicemail:
New with the iPhone 3G you can actually search your contact list! You can also add geographic tagging information to your contacts.
Every time you plug your phone into your dock, connecting it to iTunes, it will sync your contact list. This makes adding, editing, updating, deleting and managing your contact list easier than ever before! The iPhone 3G, as a phone, is an absolute pleasure to use.
Email on the iPhone 3G
Email on your phone has never been more convenient: it looks just like the Email on your home computer but loads lightning fast as compared to other mobile phone email systems.
iPhone 3G email easily integrates with popular mail servers such as mobileme, Microsoft Exchange, Yahoo!, Gmail, AOL and many more.
The iPhone doesn’t achieve quick, rich email by only giving you the basics. You can view HTML emails and even open up PDF, Word, Excel and PowerPoint files! A number of additional features makes emailing with your iPhone 3G quick and fun!
Web Browsing
The Apple iPhone 3G features the Safari internet browser. WiFi and 3G speeds allow you to browse on superfast connections and you can sync your favorite bookmarks from your PC to your Phone for viewing your favorite sites!
The iPhone 3G automatically connects to the fastest connection possible, whether 3G, WiFi or another available connection. You can easily zoom in and out with a tap or pinch and switch between landscape and portrait just by turning your phone!
iPhone 3G is your iPod, too
Why lug around 2 devices? Your iPhone is also your iPod (and your camera, but we’ll get to that). Browse your album covers in Cover Flow, watch widescreen music videos… Why not watch TV shows and Movies? You can get them all on iTunes and sync them directly to your iPhone. Doeverything your regular iPod can do… all on your iPhone 3G!
SMS and Text Messages
iPhone text messaging and SMS is more intuitive (and smart) than any smart-phone. Instead of your typical, clunky text messaging system, iPhone 3G integrates text messaging as more of a “chat” feature similar to AIM, MSN Messenger or Yahoo Messenger.
Not only that, the iPhone 3G now has predictive typing to make your texting go MUCH quicker. It learns how you talk and suggests how to finish your words and sentences based on your typing history.
iPhone 3G GPS, Mapping and Directions
Location, location, location – that’s part of what the iPhone 3G is all about. Find your precise current location and use it to get directions, traffic reports and more! Perhaps you want to find local points of interest – just type in your search term and see the local results pop up!
iTunes for your iPhone
iTunes is no longer just a desktop browsing service… because now, your iPhone has iTunes. That means you can browse artists, television shows and movies with the flick of the screen and touch of a button. Make a purchase, watch and listen live and then, sync it all back to iTunes to share it with your Personal Computer and other handheld devices.
iPhone Application Store
Perhaps the most exciting part of the iPhone 3G is the application store. You can download applications, both free and paid, that offer new functionality on your mobile phone. For example, download the free eBay application that allows you to view, bid on and monitor auctions with the greatest of ease! Or, buy a mobile game for a one time fee that you can play again and again and again!
A huge amount of iPhone power will come with 3rd party developers offering new applications and opportunities that you can easily download from the Application Store.
iPhone 3G Calendar
Stay organized with your built in calendar. Nothing is more detrimental to organization than having different copies of different schedules in different places. That’s why the iPhone 3G will sync the calendar on your phone with your popular calendars of choice such as Outlook or iCal. Make your life easier and never miss a birthday again!
iPhone 3G Digital Camera
Taking beautiful pictures is just the beginning of the iPhone digital camera experience. You can now easily sync your pictures with various applications on your PC and share them with friends and family directly from your iPhone. You’ll love exploring all the added picture functionality with the iPhone camera!
YouTube, Stocks, Weather, Calculator and More!
The list could go on and on with features that will make your mobile experience more grandiose then ever before. Ladies and gentlemen… its about time you stop reading and get your own iPhone 3G for exploring!
