Why the price of new 3g iphone is less than the old one?

Question

how it is possible that a new version comes in a market and its price is less than the old one such as the old one cost around 299$ and the new one cost 199$. any where in the world i see first time. take an example of nokia. new version always come with 50% more price of any series like nseries. i have old iphone and now i m going to buy the new one but i sure there is something. may be i consider that the quality become lower or what ever also 2.0 windows is beta version or not . if it is beta then beter i buy the old one. some confusing....... also i m till now unable to get the answer of my last question that photo and camera icon missed ..and now a new problem occur ... icon of av player go down at the end and its brown edge appears ....unable to get it back...it not moving....thanks

Answer 1

My understanding is that the new iPhone costs less initially because of the carrier is helping to pay for it (unlike the previous model).  However, in exchange for their "help," the monthly service charge is higher and, when you total up the amount paid over the contract term, the older model is actually less expensive than the newer model.

Answer 2

No the new iphone is only getting better it is going lower in price because more peoiple are buying them and apple dont need to make so much profit on each individual iphone its getting GPS, 3G and the new app store