The new 3G iPhone is being offered at a much lower price compared to not only the initial price of the first iPhone, but even compared to the last known prices of the first iPhone.
The iPhone 3G 8GB model will be sold for $199.
The iPhone 3G 16GB model will be sold for $299.
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Now, are those the prices for the iPhone, with or without the contract? Did the original even call for a contract?