overpriced depending where they get them from.
8GB iPhone in Italy with a 2 yr warranty,the second year being local,costs 499,700$
16GB runs for 800$
no contract whatsoever, no need for a turbosim, sim unlocked,that is.
So if you find some like that on ebay that sell for just a bit over 700$ I say it's a good deal,just make sure they don't need turbosims. 2.2 seems to not work well with them. ...and in that case they would have gotten the phone for less.
I think it's in swiss where you can buy an iPhone without a contract for about 350, but it would be simlocked, similar story in the UK
In the US you'd have to go in an Apple/AT&T store and sign a contract,buy one for 199$,wait a month,pay that month of service and end the contract,pay the fee.