When Apple lowered the price of the original iPhone to $399 they completely disrupted the industry and it was awesome. (My Sanyo M1 cost $449 under contract in 07). But now that I'm looking at non-contract iPhone pricing it does make me wonder why these phones cost so much and if something can be done about it. iPod Touch (16GB): $199 iPhone 4 (8GB): $549 iPhone 4S (16GB): $649 iPhone 4S (32GB): $849 iPhone 4S (64GB): $849 Are the phone components really that expensive that there's a $350 price difference between a Touch and iPhone 4? Or is it a fake price differential made purely to encourage carrier contracts? Maybe it's time to change that. Think about it. Many users would like to upgrade every year but can't because of carrier contracts. But now that Apple offers a "world phone" that has the capabilities of riding any network then wouldn't pricing it more aggressively benefit Apple (and their customers) in the long run? For example, pricing a non-contract 32GB iPhone 4S at $400 then they're reducing the power of carriers and encouraging users to do ANNUAL upgrades rather than getting caught in 2yr contract controlled upgrade cycles. Apple has a way of changing our perception of how things "should" work so I'd love to see them do something about cellphone pricing and carrier reliance because they're now in a position where they can really make contracts a thing of the past and that benefits both Apple as a company and us as consumers.