While it’s not being talked about too much, the $99 iPhone 3G is a very interesting play by Apple. It takes what was previously a just out-of-reach device for many, and puts it at a magical price-point. Sure, it still won’t sell everyone, like the people who only care about getting the phone that their carrier is offering for free, or those looking for the cheapest possible monthly plans

The rest is here: 
The $99 iPhone Is James Bond. The Other $99 Phones Are Joe Schmoe. (TechCrunch)