he's not really exaggerating, though. i bought my iphone in the first few days after release, and i did indeed pay 600 bucks for it. it has come down since then, but there are those of us who paid that.

i can't remember the exact details, but the cost for the data plan went up after they introduced 3g support, and dropped the 200 free text messages per month.

It cost you more than $199. You just don't realize it, because Apple and your carrier did a good job of snookering you.