The biggest news on Apple’s new smartphone does seem to be the arrival of the iPhone 3G S but moreover what pricing it will carry, which has causes a bit of a storm with potential iPhone 3G S upgraders with AT&T.

However, according to Seth Weintraub of computerworld, “all of this pooh poohing about the iPhone 3GS upgrade pricing is just silly.”

Why? Well AT&T is charging iPhoners who have had their contract for less than a year $200 to upgrade to the iPhone 3G S, and as iPhone is a subsidy sale AT&T’s price reflects the costs they have to fork over to Apple every month for the privilege of selling the iPhone which costs probably in the region of $700. Apple sells it for $200 and AT&T has to foot the bill for the difference and so the $200 is a fair fee.

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