Given that you'll pay at least $50/month for iPhone service, who wouldn't go for the $199 3GS over the $99 current model? The feature set seems huge and interesting to just about anyone -- who doesn't want battery life and speed? The nature of the service contract practically guarantees that iPhone buyers aren't horribly price-conscious when making purchases. So, of those likely to buy, who won't value the new model at at least $100 more than the old one?
i think there's a lot of retail evidence to suggest this is true. its also true in the reverse (a high priced item placed next to a midrange item will help the midrange item sell better than if it were placed alone)
Don't the monthly plans differ in price as well? I could understand the $99 option if it was the only cost difference between a flip phone and an iPhone.
Unfortunately, the iPhone SDK is hard-coded to the existing screen size in a lot of ways. For example, most apps contain a Default.png that is displayed while the app is loading, which is exactly 320x480 pixels in size.
It's just a matter of time before Apple releases an iPhone-like device with a different screen size, but when they do, it will be a painful transition.
It could be argued that the introduction of the new device would be the perfect opportunity. Having resolution-independent apps isn't going to help when the physical size of the screen changes. I think the UI changes going from a 3.5" screen to a 7-9" screen are going to be bigger than the changes to increase pixel density on the same size screen.
With the 8gb 3G phones selling new for $99 bucks, you're going to be in a tough spot. When the 3G came out, a bunch of people at my office got rid of our old iPhones by unlocking them first. Every single one we sold went to someone on T-Mobile.
Are the 8gb 3Gs selling without a contract for $99? I doubt it, since that's cheaper than a touch. When I got my 3G, I sold my 8GB v1 for $250, presumably to someone who was going to unlock it.
