The N900 is cheaper than an iPhone - I think that an unlocked 16GB 3GS is around $799.

The N900 is better than an iPhone - screen res., camera sensor, camera optics, video recording, video playback format support, memory, storage, browser, flash, file management system (it has one!), multi-tasking, etc.

So it should be fairly competitive. By that I mean there are plenty of people out there with enough money to buy an iPhone who will at least consider this. In the US the media bias and operator tie-ins will work against Nokia but in the rest of the world the N900 will sell with multiple operators (subsidised and unsubsidised) in each major country so that they will have a wider distribution base which should help to counter-balance the US situation. Of course, I am sure that T-Mobile will shift a few units but Europe / Mid East / India and China will really dig this device.