and here's why. 1st gen iPhone released. Lots of hype. Few people bought it - but still a relatively niche item because of price. No 3g, no front camera, no GPS. 2nd gen phone released. More hype, but this time, it DOES include 3G, and GPS, AND is cheaper. But no front facing camera, no upgrade to existing camera, and no video through camera. And sometime next year... 3rd gen phone released. This time with a front facing camera, an upgraded camera, and basically everything we have ever wanted. It's the oldest marketing trick in the book! Keep us wanting more so we keep buying the newest. Rather than selling 1 million iPhones, they sell 1 million of the first gen, then another million on the second, and another million of the 3rd!