Here is the pricing structure for the new iPhone 3G S in the US: (all prices are $-99/$-99 16GB/32GB) "New & Qualified" AT&T customers w/ signing new 2 year agreement: $199/$299 -to be "qualified" you must have had your contract for 18+ months if you didn't have an Original iPhone, or 12+ months if you had the Original iPhone. You must also lock in for 2 years with AT&T. Partially subsidized pricing w/ signing new 2 year agreement: $399/$499 + $18 upgrade fee -with this option you pay a $200 surcharge over the subsidized price (included in the above quoted prices) and an $18 upgrade fee but must lock in for two years from the day you buy the iPhone 3G S. Unsubsidized pricing w/o signing new 2 year agreement: $699/$799 + no additional upgrade fee edit: $599/$699 + no addition upgrade fee -this option gets you the iPhone 3G S handset completely free of contracts or ties to service, however the phone is still locked to AT&T only. Apple and AT&T are currently only accepting pre-orders on option number 1, you can not pre-order an iPhone 3G if you have had your AT&T plan for less than 18 months (or 12 months if you had the original iPhone). They will be reserving a number of handsets to be sold to people who did not or could not pre-order because of their plans. Edit: this is for in-store and phone pre-orders. Option 2 can be pre-ordered online. Hope this helped clarify the pricing confusion of the new iPhone 3G S.