NxtUp...iPhone
Aftershock...
"How did Apple get the iPhone down to $199, while adding 3G and GPS? They changed their business model with carriers. Carriers will now give Apple a subsidy instead of a monthly cut of the plan. This means that providers like AT&T will pay more upfront to Apple, but get all of the monthly fees from their customers. They've also raised the price of the data plan from $20 to $30 a month. This cash upfront plan is how Apple will be able to get the iPhone into new territories around the world that might have been apprehensive about signing themselves up to give Apple a cut of plan fees for two years."
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