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Anyone in this day who isn't familiar with the rapid pace of tech advance/price decline is just asking for it anyway. When you consider that the 2 year cost of the iPhone and contract is somewhere around $3,000, why should $200 make much of a difference? Besides, no doubt Apple has figured out how to lower manufacturing costs now that they know what the demand for their shiny new gadget will be. Normal course for a new product. Those reduced manufacturing costs are being passed along to the consumer in this case. Pretty good deal, I'd say.