This deal has ended.
Apple released their newest incarnation of the iPhone on 6/19, the 3G S iPhone. This model, which starts at $199 for the 16GB model and $299 for the 32GB model, has all the features previously available in the 3G iPhone, as well as a faster processor, longer battery life, internal compass, video camera, and a photo camera with better resolution and auto-focus. Beyond that, the 8GB iPhone 3G is now starting at just $99. Check out this interesting early analysis from Yahoo! Tech.