It's being offered an a variety of deals in the UK. You can get the handset free if you take out an 18th month contract at close to $90 a month or you can buy the handset for $199 and get the cheaper monthly rate of just under $70.
It's also going to be available as a Pay As You Go phone.
Existing iPhone users can upgrade to the new model as long as they either switch to a higher monthly tariff under a new 18 month contract or, keep their existing monthly rate, with a new 18 month contract, by buying the handset for $199.
I already have the ;old' model and I must say I'm very drawn by the GPS, (very coold demo at the keybote) but drawn by the 3G a little less. I also didn't appreciate the demo pointing out how crap EDGE is compared to 3G. I felt like Kathy Bates in Misery, "Why are you people applauding?! Don't you see that they cheated you! They stiffed us with EDGE, told it was amazing and now, a year later, they're telling us it's a pile of cock-a-doody crap!"
(that's why I'm banned form keynotes, btw)
But everything else is the same. I'm not keen on the new colours at all; the brushed metal on the old model is very pretty and holds up well to scratches. I'm not wild about the reduced edges/corners either. It looks more fragile to me.
I also can't help but wonder if the new colour schemes are a devilishly superficial way to visually identify at a glance what model people have. A lot about Apple is the design and status and this new colour scheme seems very akin to having Premium, (old) Gold (new 8 gig) and Platinum (new 16 gig) credit cards. I know I had a very self conscious (and very lame) pang of, "But... now when people see my phone with the brushed metal, they'll know it's one of the old ones!" I'm not saying Apple is super-evil in that regard and playing on people's desires to be at the cutting edge of new technology and that people who can't afford to upgrade or don't want to will be somehow shunned by the masses with their shiny black or white plastic-backed iPhone 3Gs... I just don't know how else to finish that sentence.
:sigh: