Apple is also dropping the price of the phone itself from $399 to $199 for the 8gb model and $499 to $299 for the 16g version. So your net cost of phone plus two years of service will be $40 more than the original iPhone. Who cares though? I think it’s worth the extra $40 because of its integrated GPS and 3G. I would guess nobody would choose the slow EDGE data but lets see what’s the outcome.

• LOWER PRICE: $199 (8GB Black model) / $299 (16GB)
• Available July 11 Worldwide
• Available in Black and White
• Available in 22 countries at launch, 70 countries by end of 2008
• 3G Data Support
• A-GPS with live location tracking
• Thinner at the edge with  full plastic back, and solid metal buttons
• Flush-mounted headphone jack (Hurrah!) and improved audio quality
• New iPhone Software 2.0 with Third Party apps and optional me.com support
• Full Exchange support with secure VPN
• Battery Life (according to Apple):
  • 300 hours standby.
  • 10 hours talk time (2G) — 25% increase over first iPhone.
  • 5 hours 3G talk time is 5 hours — Apple claims 66% more than other 3G phones.
  • 5-6 hours of 3G browsing.
  • 7 hours of video playback
  • 24 hours of audio playback

Full Specs (from Apple.com):

Specifications

Screen size
3.5 inches (diagonal)
Screen resolution
480 by 320 pixels (163 ppi)
Input method
Multi-Touch
Storage
8GB and 16GB1
Cellular
UMTS/HSDPA (850, 1900, 2100 MHz)
GSM/EDGE (850, 900, 1800, 1900 MHz)
Wireless data
Wi-Fi (802.11b/g)
UMTS/HSDPA (850, 1900, 2100 MHz)
EDGE (850, 900, 1800, 1900 MHz)
Bluetooth 2.0 + EDR

GPS
Assisted-GPS
Camera
2.0 megapixels
Battery2
Talk time: Up to 5 hours on 3G;
up to 10 hours on 2G
Standby time: Up to 300 hours
Internet use: Up to 5 hours on 3G;
up to 6 hours on Wi-Fi
Video playback: Up to 7 hours
Audio playback: Up to 24 hours
Dimensions
4.5 by 2.4 by 0.48 inches
(115.5 by 62.1 by 12.3 mm)
Weight3
4.7 ounces (133 grams)

My Nextel contract just finished and Im still undecided on what to get. The iphone or the lg vu?