This morning we're getting a first look at unsubsidized prices for the iPhone 3G in Europe. Vodafone Italy has set an out-of-contract price for the iPhone 3G at 499/€569 ($773/$881) for the 8GB/16GB models, respectively. Subscription rates have not yet been announced. While steep, those prices are actually smartphone-reasonable in Italy (and around Europe) where an HTC Touch Cruise with its WiFi, tri-band HSDPA data, GPS, and touchscreen sells for €549. Capisce?

[Thanks, Andrea]