The iphone that is out now is iphone 1.1. In the months to come there will be upgrades, modifications and design changes to make the iphone more durable practical and usable. The price will come down but it will always be at the high end of the market. I think it will be a staple in 5 years and "everyone" will have one. Motorola, Nokia, Sony, and all the others will have cheaper but cool devices but the iphone brand will probably endure for a long time.