Thought the iphone is much more than $199 in real terms? The requirement to enter into a 24 month contract means that the carriers subsidize the iphone as they do other phones. Comparing it to other similar priced devices, I guess the real cost for a no-contract iphone will be roughly $600-$700 (versus say $400 for N810). Having said that, 3G (HSDPA) access is a great strength in the iphone while no VOIP and bluetooth tethering are a let-down. Only wish for a N810 with a 3G (HSDPA) access (without another 3G device to serve as modem as it is currently)...