iPhones are always advertised at the $199 price point, but that price point is the subsidized price. However, since it's the heavily advertised one, that leads me to think that $199 is the supply/demand market price because that is what the carriers have conditioned us all to believe. However, the true cost is $649 which includes a substantial profit margin. Now if subsidies were removed, I'm pretty sure $649 would not stand up as the true market price. Considering the component cost, Apple would have to price the iPhone north of $199. What do you think the iPhone's true market price would be? $399?