$199 For 3g iPhone?

I just realized why Apple is willing to sell the iPhone for $199. No it’s not the kickback from AT&T. It’s the apps! They’re¬†undoubtedly¬†losing money on the device and banking on the fact that people will purchase so many apps over the life of the device. Sound familiar? Yup, it’s the same business model as the video game console market.

Maybe I’m the last one to realize this…