"The moves are an acknowledgment by the Cupertino, Calif., company that the original iPhone was too pricey for the mass audience, especially in a weakening economy. Apple said it will halve the entry price for the new iPhone 3G to $199 in the U.S. and abroad, compared with the $399 starting price for the current iPhone. In an interview, Apple Chief Executive Steve Jobs said the iPhone could even be free to consumers in some countries outside the U.S. if they commit to richer wireless plans with carriers."
Masses? No. But being available in 70 something countries they'll sell a lot of phones. As many have figured out the important price number is the $1600 or so cost of ownership over the two year contract. I don't personally make enough cell phone calls to make it more valuable than other things I could spend that amount of money on (and have around for many years to enjoy), but for a lot of people who aren't worried about brain cancer these will be irresistible toys.
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