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The asterisk on the 3G iPhone's price tag

Apple has named the next iteration of its game-changing mobile device the "iPhone 3G", which calls attention to a feature missing from the original release - the ability to grab information from the Internet at near-broadband speeds. However, the fact that the new iPhone will use AT&T's zippy 3G network is not its killer feature.

By Dwight Silverman

13 Jun 2008

Nor is the fact that it will talk to the Global Positioning Satellite system. Many other smartphones already do both of those things, and have for a while.

No, the most eye-opening aspect of the iPhone 3G is its price tag.

When it goes on sale 11 July 2008 in Apple and AT&T retail stores, the 8-gigabyte (GB) model will cost US$199. A 16GB version will sell for $299. Previously, iPhones were $399 and $499, respectively, which means the price of the entry-level phone has been cut in half. However, Apple's not giving these babies away, and as you'd expect, there's a catch. More on that in a moment.

Read the full article here.