iPhone pricing

I thought the new lower prices for the iPhone 3G would apply to new subscribers, but apparently only previous iPhone owners and those who have been with AT&T long enough to have paid of subsidized phones will qualify. All others will have to pay $399 and $499 for the 8GB and 16GB models.

Which tempers my outlook for sales to new customers. I thought the half price would apply to new customers as well, and everywhere you see ads for the new iPhone they tout "Twice as fast. Half the price.*"

The asterisk turned out to be bigger than anticipated. On a positive note, maybe it means shorter lines on July 11 for those who'll be standing out there, being filmed and photographed by local press and people uploading pics and video to Flickr and YouTube.

UPDATE: Oops, as Andy notes, the full price of $399/$499 is just for AT&T customers who don't already have a 2G iPhone and who haven't finished their current contract. Which makes sense since some of the subsidy for the phone is in the 2 year contract that most cellular companies offer. The new iPhone 3G has a subsidy built into the monthly rates, which is why it will be cheaper to buy up front. But this means that if you buy an iPhone 3G, if a new model comes out and you have not completed your 2-year contract, you won't get the subsidized price on that new model.