rossmnz: Hang on a minute, i read somewhere that the device costs like US 176 for materials and US9 to make(roughly).
The markup is friggen huge, and frankly unacceptable. However, this needs to be put at Apples door, not so much the telcos.
However, ill still get one cos i love my 2G and want the increased speeds!
A phone's retail price is based on market forces (i.e. what people are prepared to pay for it), not what it cost to make. Do you really think Apple should be selling it at, say, $300? They found a way to make a device 'worth' NZ$1179 for US$185 - kudos to them.