Hi Harvey, This is a question which should be posed to Mr. Steve Jobs really. The new iPhone 3G launched in the US last week is about half the price than what it is selling for in Australia. In fact, this price differenciation is there across the world and there is no clear explanation from Apple about this leaving users quite confused. In fact, in many markets the iPhone has been on sale for prices higher than $800 since it is making its way through the grey market. Sure, many of the features might not work, but if you are keen on an iPhone, you might as well pick it up from the grey market. I had recently checked the pricing of the iPhone 8GB at
www.myshopping.com.au/PR--197196_Apple_iPhone and noticed that it is almost at $875 and is also not in stock. So much for the iPhone popularity. I think the iPhone is a highly overrated phone and it is slick marketing and product awareness which has got it such a big cult image. If you are still very keen to get the phone but are suffering from sticker shock, then just hang on a for a couple of months, the pricing is sure to come down due to popular demand!