And although it may seem unfair for loyal users to pay this exorbitant price for the latest version, it’s the industry standard for most electronic devices. This is the full non-“phone company subsidized” manufacturer cost for the new device.

Think about your laptop or other electronic purchases. You don’t get a discount when you a buy a new laptop a year after buying the previous one. The game-changing discounted entry level prices are to entice users into signing a binding two year contract with AT&T. Once they’ve got you in, they can count on your monthly usage and data plans like a steady paycheck.  

Check out Apple's full comparison of the iPhone 3G and the new iPhone 3G S and let us know if you’ll be on board for the new (potentially costly) upgrade.

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