I still don't see what you are saying...
Isn't $199 about the average price of a smart phone (with contract)? If other carriers had the iphone, they would prob just require a data plan for the subbed price...like what at+t currently does..
simple one the other manufactures are going to really start complaining about apple having an unfair market advantage. The iPhone 16G cost more than a Blackberry Bold unsubsidized yet when you put in the $400 it makes it cheaper.
That is why you could expect the price to increase. More so you can expect the subsidize prices of the iPhone to increase to bring it more in line with other smartphones. It would effectively raise the price with contract for the iPhone $150 bring it in line with everyone else.
Apple risk getting looked at by the FCC for unfair market advantages because of the much larger subsidized on the iPhone compared to other smart phones