Ok, I've seen this on quite a few reputable blogs, including comments from stock analysts. Basically, the sentiment is that Apple will be making less money on each 3G iPhone because of the lower price, and they will try and make it up by selling more iPhones. Now, call me crazy, but that math doesn't seem right. Apple sells the phone, we buy it, we pay AT&T for service. AT&T is subsidizing the price, and they pay that money to... Apple. So Apple is getting full price for each 3G iPhone sold. $399 for 8GB, $599 for each 16GB. How is that less money? Now, maybe some very smart people were just confused about who was subsidizing the phone, but its clear that its AT&T. I think when people hear "cheap iPhone!" they automatically assume Apple will be making less money. But it won't. Am I correct, or do I need to go back to school?