I don't think that the iPhone models and price points Steve Jobs introduced at Macworld will ever see the light of day. For my full reasoning and analysis (including how they would still make money at the lower price points), you can check out my blog but the highlights of my thinking are as follows... http://torants.blogspot.com/2007/01/4-gig-499-and-8-gig-599-iphone-just.html Apple as a company is extremely protective about new product announcements. They hate to announce something until they are ready to and like to ship products as quickly as possible after announcing them to keep the competition playing catch-up. In the case of the iPhone however, Apple had to announce the product almost six months before it plans to ship the product due the need for Apple to get FCC approval for the iPhone. This gives the competition 6 months to study the iPhone and add features and functionality to their existing products before Apple even gets out of the gate. Steve Jobs would not have been very happy about that. I believe that when Steve Jobs announced the iPhone earlier this month, he did so with a few tricks up his sleeve. He knew that as soon as he announced the iPhone that the competition would begin to develop copycat models at similar price points. I believe that the competition will spend the next few months developing these products only to see Apple lower the price points of their iPhone to $299-$349 for the 4 Gig model and $349-$399 for the 8 Gig model. This would keep the competition scrambling (and potentially losing money if they develop a phone based on an expectation of selling it for $500-$600 and are forced to immediately lower the price to $299-$399. I also believe that the iPhone will never ship with 4 Gigs and 8 Gigs of memory. When Steve Jobs compared the price of the iPhone to a current smart phone plus an iPod Nano, he compared the price to iPod models that will be almost a year old by the time the iPhone ships. Assuming that the iPod Nano memory doubles again this fall at similar price points, the iPhone could very well ship in 8 and 16 Gig models at the price points I've outlined above. Taking this a step further, Apple enjoys some of the best (if not the best) pricing in the flash memory market due to their huge purchasing power. Why not use this to their advantage to crush the competition in the iPhone space and ship the iPhone in 16 and 32 Gig models. The competition could not come close to matching Apple prices in these configurations and Apple would have a huge advantage.