This is pure speculation but I suspect that the new 8 Gig 3G iPhone will still cost $399 when purchased at the Apple Store. I believe that when a user activates it with AT&T they will get a $200 rebate/credit bringing their cost to the $199 as stated by Steve Jobs. This way, people purchasing an iPhone to unlock and use with other carriers will pay $399 and Apple gets the extra $200 they would have received from AT&T under the previous revenue sharing agreement. I believe that Apple has basically traded off the revenue sharing agreement with AT&T and allowed AT&T to basically offer a $200 rebate up front on the iPhone. Otherwise, Apple has traded $399 up front + $10 or so per month for $199 up front and nothing moving forward. I don't buy it... Most people will still get the phone for $199 - with all these new features, it makes less and less sense to me to have a Phone without the full data plan.