These stories always amuse me. In Australia the prices quoted would be the "upfront" charge, which is essentially meaningless if you also have to sign up to a 24 month contract. Over here, in almost all cases, you sign up to a contract and walk out of the store with your shiny new iPhone without handing over a single cent. The cost of the phone gets spread over the 24 months of bills in your future. I don't recall paying an "upfront" charge since the iPhone 3G came to Australia in 2008.