A few things. First, recall that the RAZR was rather expensive at initial release as well. It is now the best selling cell phone ever. So was the iPod (remember the original /. capsule review). So was, for that matter, the original Walkman. It was at least $400 in 2007 dollars. Why? Fashion, not value, dominates. And iPhone is teh sexy. You say you need to be an early adopter yet are unwilling to pay? Call the goddam waaahmbulance. Second, this is not going to be an easy device to produce, and Apple has got to be watching the PS3 delivery debacle with a wary eye. Much better is to get it into the hands of the trendsetting early adopters with high margins and in quantities they are reasonably sure they can deliver. If they make their stated target they're still talking about more than half a billion in sales in the first year. Third, this is a huge launch for Apple. They did not want to dilute press coverage by talking about five products - especially incremental ones like the subcompact notebook that I've had the Jones for for so long (looks like it's time to put a bigger hard drive in the venerable & inscrutable 12" G4). But the LAST thing Jobs wanted was press coverage of a friggin' VAIO clone in place of his beautiful baby iPhone.