Original Iphone

Whats the difference between the original iPhone and new iPhone 3G?
Why is the iPod 3G only $199 when the other iPhone is like $500?. Please be specific!!!
Because the 3G is technically $399 and $499.
The prices are subsidized when you sign a 2 year contract (this is true with any other smart phone like Blackberry, Tilt, etc.), making it $199 and $299.
The 3G iPhone looks different, has a 3G radio (so you surf the web more than twice as fast), and has GPS.
Generally Apple has upgraded the features of a product but kept the price the same. It's true in this case too.
Subsidizing is the carrier's choice. It still is technically $399 and $499, but because you are required to sign a 2 year contract anyway, we'll probably never see those prices.
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