Because in the US or some other places in the world, the cheap version will appeal to people with limited initial resources or people who don't want to pay alot up front for a device.
So they could sell it to people for a far lower price and get more customers....
Are you serious?
£349 here in the uk, is hardly a cheap option that is gonna entice sales.
by keeping this base rate of £349, it means the new phones are astronomically over priced.
Is that the subsidized price?
the thing is the price hasnt really been reduced at all. its the price listed both on the apple website and the o2 website.
the new phone in the uk is £440 for (16gb)
As an unsubsidised phone O2 offers a Pay & Go iPhone 3G 8GB - £342.50
Last year's technology at an outrageous price…
That makes sense if it's the full price. There should also a subsidized price, but maybe it's not out yet.
the subsidised prices are inflated from last years (latest technology prices)
the unsubsidised 3g phone price was £349 prior to the announcement. So nothing has changed.
Are they inflated for people starting new contracts too or only for people who are already in an iPhone contract?
I have a very difficult time believing that there are people out there who can afford a $100 phone, but not a $200 phone, who are also able to pay $70/month plus texting and taxes. If there are I can't imagine there are many. They need to reduce the monthly charges if they really want to expand the market greatly.
Instead of creating a pro and normal version, they made the new one pro, and kept the last version alive as a cheaper alternative to the cost conscious.