From here in Europe where we have near ubiquitous 3G (and rapidly increasing availability of HSPA), it seems obvious that the lack of 3G capability is the key factor behind modest demand for the iPhone to date. Yes, knowledge of an upcoming 3G version (the worst kept secret in the tech world right now) is holding back demand this year, but even before that many buyers were put off the iPhone’s narrowband type wide area networking access - even if everything else about it is highly attractive.

This certainly is a view that I and many of my colleagues and friends share. We all want an iPhone, but only when it does proper networking!

In the meantime, I have some non-scientific indications that the price cuts have at least partially worked by clearing the channel for the new version: the new price puts its more in the range of a device for people who want a great iPod with phone capabilities - perhaps explaining the larger number of European students and “early stage affluent” types who I have seen with an iPhone in the last month or two.