The article "Study: Consumers won't pay $500 for iPhone" summarizes research results about the iPhone. There were 379 people surveyed and the majority of them had shopped for an iPod. Twenty-six percent of those surveyed said they would purchase an iPhone and only 1% of those who would purchase it would pay the proposed $500 for the iPhone. If the price dropped to between $200 and $299, forty-two percent of those who would purchase an iPhone would more likely purchase it in that price range. Of those who would purchase an iPhone, 60% said they would switch to Cingular in order to get the iPhone and the service.
The article discusses the markets of the iPhone and the Blackberry. There are two different markets for the different handsets, and each have their own niche, so there most likely won't be a competition between the different handsets, but more and more consumers are looking for a smart phone.
There is a debate between researchers on what the iPhone will actually retail for. Apple has been known to say a price that is much higher than it is when it is actually releases, like the Apple TV was expected to cost $399 but when released actually cost $299. The phone may start around $500 because early adopters will pay that, but it will most likely drop $100 to $200 shortly after release.
Source:
http://www.computerworld.com/action/article.do?command=viewArticleBasic&taxonomyName=mobile_devices&articleId=9011688&taxonomyId=75