$399 - $199 = -$160
This is a perfect example of how marketing works magics with numbers. You probably heard that Apple is releasing a new version of their popular phone. The support for 3G and built in GPS are the major upgrades. The cool part is that the phone will cost you $200 less, if you trust the PR nerds from Apple.
Don’t get fooled by this marketing trick. If you calculate the true cost to own of 3G and 2G iPhone, you will find that the “cheaper” new version will end up being $160 more expensive over the period of 2 year contract, now mandatory with the phone purchase. This of course doesn’t mean you shouldn’t buy one. ;-)
Source: iPhone 3G’s True Price Compared at Gizmodo (via Digg)