“The iPhone Subprime Crisis is what will happen as a result of Apple lowering the point-of-entry price of a new iPhone while increasing the overall cost of ownership over the two year term of the contract (up to $2700!). People who thought they couldn’t afford an iPhone when they cost $400 now (falsely) feel like they can afford one when it’s $200. After a few months of heavy bills, as the “cell contract foreclosures” begin, look out for a lot of used 3G’s coming to eBay.
Ricky Van Veen’s GET EXCITED: The Impending iPhone Subprime Crisis

The higher cost of service was one reason I was initially resistant to the iPhone 3G (for, oh, about five minutes), and I still think the fact that the lower hardware price point that comes with it has opened the floodgates of iPhone holdouts proves yet again that people just can’t do math. Between that, and the increased hassle of in-store activation, I find myself nostalgic for the time (not so long ago) when Apple seemed to have gotten the better of the “orifices.”