Given that you'll pay at least $50/month for iPhone service, who wouldn't go for the $199 3GS over the $99 current model? The feature set seems huge and interesting to just about anyone -- who doesn't want battery life and speed? The nature of the service contract practically guarantees that iPhone buyers aren't horribly price-conscious when making purchases. So, of those likely to buy, who won't value the new model at at least $100 more than the old one?

Having a crappy option makes the more expensive options seem like a better deal.

i think there's a lot of retail evidence to suggest this is true. its also true in the reverse (a high priced item placed next to a midrange item will help the midrange item sell better than if it were placed alone)

It's great for the impulse buyers who see $99 and fall in love with the idea of buying it. The phrase "penny smart, dollar dumb" comes to mind here.

There are also people buying solely on price, who after comparing it against a free flip-phone, will spring for the $99 iPhone as a (relative) luxury.

Don't the monthly plans differ in price as well? I could understand the $99 option if it was the only cost difference between a flip phone and an iPhone.

The only extra thing I was expecting was a higher res screen. I guess they decided that would be too disruptive to the developers.

Unfortunately, the iPhone SDK is hard-coded to the existing screen size in a lot of ways. For example, most apps contain a Default.png that is displayed while the app is loading, which is exactly 320x480 pixels in size.

It's just a matter of time before Apple releases an iPhone-like device with a different screen size, but when they do, it will be a painful transition.

They just had the perfect oppertunity to make that transition with the change to iPhone OS X 3.0, so that is no excuse.

It could be argued that the introduction of the new device would be the perfect opportunity. Having resolution-independent apps isn't going to help when the physical size of the screen changes. I think the UI changes going from a 3.5" screen to a 7-9" screen are going to be bigger than the changes to increase pixel density on the same size screen.

Looks great... anyone want to buy my 3G?

With the 8gb 3G phones selling new for $99 bucks, you're going to be in a tough spot. When the 3G came out, a bunch of people at my office got rid of our old iPhones by unlocking them first. Every single one we sold went to someone on T-Mobile.

Are the 8gb 3Gs selling without a contract for $99? I doubt it, since that's cheaper than a touch. When I got my 3G, I sold my 8GB v1 for $250, presumably to someone who was going to unlock it.

Agreed. As a miserable Verizon customer, I would love me an unlocked iPhone 3G.

Does Apple sell a CDMA-based iPhone anywhere in the world?

No, sadly. All GSM. :(

The presser's going out tomorrow, but hey, you're on HN - we'll take your listing: http://www.dawdle.com/search.php/1/1/Platform=iPhone