Below on apples store site:
“(1) 1GB = 1 billion bytes; actual formatted capacity less. (2) Requires new two-year AT&T wireless service contract, sold separately to qualified customers; credit check required; must be 18 or older. For non-qualified customers, including existing AT&T customers who want to upgrade from another phone or replace an iPhone 3G, the price with a new two-year agreement is $599 (16GB), or $699 (32GB).”

Horse-crap there is. You people DO realize 2 days prior to the 3GS there is the 3.0 Firmware update correct? You also realize that MOST of these fancy “new” features in the 3GS WILL be given to 3G users via the update, which is Free, correct? This faster speed isnt exclusive to 3GS because of the “S” like you claim, it’s part of the 3.0 firmware update which again, is free.

The ONLY things the 3GS will have over the 3G is a 3.0 Megapixel Camera, Video Recording, a Compass and Voice Dialing. That is all.

Now is a 1.5 Megapixel increase, video recording, a compass and voice dialing worth an extra 300 to 600 bucks? Hell no it isn’t. I can spend 100 bucks on a good digital camera thats 12 megapixel with video recording. It’s absurd.

For one the new update means that apps can be developed to give you voice dialing and a compass. If you REALLY want video recording, guess what, then jailbreak the 3G and unlock the already present interface for video recording.

Also your prices are wrong. I went through the apple store AND AT&T store and for current AT&T users the prices for the 16GB and 32GB 3GS are $499 and $599 WITH a 2 year contract. If you want a phone without a contract it is $699 and $799 for the phones.

I love the ease of use of Apple products, and upgrade my computers often, kicking the old laptops down to the family (my 8 year old has her very own black macBook, my s/o a macBook Air).

I could afford to upgrade as my father’s day gift to myself, but until consumers start behaving reasonably, this price gouging will continue. So I won’t be upgrading until…sigh… 03/13/10.. as that’s only 3 months before the next iPhone release, it’s unlikely that I’ll have a 3GS at all.

Stings.