The iPhone: Price - $499 4GB, $599 8GB in June

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This image was lost some time after publication, but you can still view it here.

10:46: Steve's comparing the iPhone to buying an iPod and a smartphone—he says people carry around both.

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10:46: 4GB model = $499

10:47: 8GB model = $599

10:47: Shipping in June!

This image was lost some time after publication, but you can still view it here.
This image was lost some time after publication, but you can still view it here.
This image was lost some time after publication, but you can still view it here.
This image was lost some time after publication, but you can still view it here.

DISCUSSION

I'm an iPod hater, but this thing had me going strong until he announced the price (of course I'd get the 8gig version, but $599 AFTER the 2-year contract), and especially after he announced Cingular exclusivity. Been there, done that, never going back. My deal with Sprint is far too good, and Cingular is far too bad in my personal experience.

Also the capacity for that price is very meh. I recognize all the benefits of flash over HDD, but no way I'm going to spend that much, get that awesome a screen, and get only 8GB and no expansion slots.

I love the overall concept, but I hate how hard he drove home the patents issue, because usually after Apple announces a new device like this I get excited about all the companies I prefer (iRiver, Creative, etc.) using the latest iPod as thing to beat. This time around those patents might keep us from seeing other companies actually make better versions of this. Hopefully I'm wrong, though, because I'd love to see one of the big boys in wireless technology run with some of these ideas.