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I've been thinking about this for a while.....why is there a $100 retail difference between the 4Gb and the 8Gb? Do you really think there is a $100 cost difference between a 4Gb chip and a 8Gb chip? NO!!! Especially when you take into account that they made a whole lot more 8Gb chips. More than 90% of the iPhone customers opted for the 8Gb To me, that means $100 more in the pocket for Apple for every 8Gb phone sold.