Actually I think they subsidized it to compete with the Blackberry and Palm phones. Most phones are subsidized to entice users to sign plans. With this price de

Actually I think they subsidized it to compete with the Blackberry and Palm phones. Most phones are subsidized to entice users to sign plans. With this price decrease it will be easier then ever for people to justify getting an iPhone. Apple is going to capture a huge chunk of the smart phone market because of this.