iPhone Subsidies Lead to Diffusion of Innovation - iPhriends.com
It looks like Apple is making its move rather quickly, reducing the cost of the new 3g iPhone to significantly increase distribution. Remember, it hasn’t even been a year since the iPhone was first introduced. The iPhones price has dropped from $599 (with a est 50%+ margin), to $399, to a possible $199. Apple is moving a lot faster than many had anticipated. It looks like Apple is counting on the two main revenue sources: monthly revenue share from the network providers and iTunes media (music, movies, iPhone games, iPhone apps).

Apple to Allow iPhone Subsidies? - Mac Rumors
3 years ago