I thought that sounded too good to be true.  It looks like the pricing of the new iPhone given at the WWDC announcement was for a new two-year contract with AT&T only.  Those of us with no ability to use AT&T (they don’t have local phone numbers or dealers in Southeast Iowa) will most likely have to pay an unsubsidized price.  I would guess that price will be around the current $400.  And that’s for the 8GB version.

I’m still interested because of all the cool new features.  But I hope I’ll be able to get a few bucks out of my current phone to help pay for this!

UPDATE:  It looks as though there is some confusion about the pricing.  iPhoneFreak.com is reporting that the $199 price is UNSUBSIDIZED, meaning that the iPhone 3G will be $100 LESS than the 8GB iPod touch!  Personally, I think they’re wrong, but you can check out the story at http://tinyurl.com/5b8tn8.