According to an Apple insider, the no-contract-required iPhone brought its stores a huge positive result although the contract includes a higher replacement costs for non-warranty-covered damaged phones.

A non-warranty device replacement would formerly cost users the price of a subsidized iPhone ($199 or $299, depending on the model). But now, the revised pricing scheme is more likely to produce a help-me-help-you situation because although some users are willing to purchase a locked, but unsubsidized iPhone 3G, others would also prefer its unlocked counterpart. In this case, both Apple and the buyer would be able to avoid being tied to a contract.