While Steve Jobs promised a price point near $199 for the iPhone 3G, we have since seen that to not be the case. On one end of the spectrum you have O2 in the UK practically giving them away; on the other you have India's iPhone provider Vodafone announcing that they will be selling the entry level 8gb iPhone for 31,00rs or bake stateside $712. The 16gb $299 iPhone sees a $130 dollar increase over the entry level for $830 or 36,100rs. The reason? Vodafone won't be subsidizing the cost on the iPhone 3G, all the while there's no 3G network running in India to support the higher speeds anyhow.