the first iPhone is surrounded by lots of hype and advertisement and won't sell in big numbers. Especially if it is not subsidised.

This makes the 10% look OK because it won't be that much money for a lot of press coverage.

The second version will attract only a fraction of the hype and the negotiation position of Apple will change.

the target public for iPhone are the well-off fashion victims who pay half the iPhone's price for a pair of jeans. But the normal people will opt for a less prestigious phone.

I wonder what exchange rate Apple will use. The 600$ will surely become 600€ if not more.

cheers,

Micha Roon

I have run a profitable business (unconnected with web, art, design or film) using Macs for many years. I won't say what or why, for fear of stirring the labile emotions of OS zealots.

When the time comes to upgrade the Treos, the iPhone will get very serious consideration, not because of the cover art swoosh, but because of the applications and OS level integration with the software that helps makes my business better than the competition. I can see a lot of potential advantages.

Can't promise thousands like me, but don't fall into the trap of assuming "the normal people" won't use the iPhone to make a better business make more money. I know that most won't, which for me is a Good Thing.

And I get all my kecks from Matalan.