If I understand correctly, the argument is whether "the iPhone 3G was simply an original iPhone in a plastic shell. Oh, and it had 3G." And that's true. When the iPhone 3G was released on July 11, 2008, Apple also released iOS 2.0. For both the 3G and the original. The 3G and the original were identical in terms of software and hardware - except for the 3G radio and plastic shell. The fact that Apple changed the pricing of the 3G to a subsidized model doesn't change that. Apple took the original, put a plastic case on it, improved it a bit, called it new, reduced the price, and it sold very well. Just recently, Apple took the 5, put a plastic case on it, called it new, reduced the price - and now we wait to see if it will sell well. The main difference is that when the 3G was released, there was no higher-up model, while the 5c has to compete with the 5s.