In USA, the Reason we paid $199 for 16GB, $299 for 32GB. Because we must to sign up the contract with Mobile phone provider such as AT&T, Verizons, T-mobile companies..etc... for TWO years . which means each month we have to pay for phone bills with a single (one phone line) or family plan (two phones line and up) for about approximately for example this is for single plan cost $75 per month ($45 for single plan + $30 for unlimited internet). so if you buy $199 with two years contract, it will cost you $2000 after two years. if you cancel before two years contract they will charge you penalty fee about $150. Or you can buy just the Phone cost you $750 without a contract, they called it "UNLOCK PHONEs" from any Apple stores, in USA. I think the $199 plan is better coz you can pay with low monthly payment of $75 with single plan in 500 minutes per month and from 7pm ~ 7am is free of charge and SAT & SUNDAY are free of charge for 2 years.