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The prices you saw are the carrier subsidized prices. The carriers buy the phones from apple and then subsidize the cost, and try to make a profit over the length of the contract.

The presentation was a little bit sloppy, because previous presentations would have footnoted that these were with a new 2 year contract prices, not "we're selling these phones at these prices".



I understand that part. I'm just amazed that the demand for the 3GS is sufficient, and AT&T desperate enough, for Apple to retain the tooling to build them.




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