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$100 price cuts could be in store for iPhone, iPod touch

There is one subject that can strike both jubilation and hatred in the souls of Apple fans: price cuts. Apple learned this the hard way when it cut the price on the 4GB and 8GB iPhone just months after its initial introduction.

The $200 price cuts led to a revolt by iPhone customers – this was followed by an apology from Steve Jobs and $100 in-store credit to the Apple Retail Store/Apple Online Store.

If the recent report from 9to5Mac turns out to be accurate, there will be price cuts for two popular Apple product lines in the coming months. According to the site, the iPhone and iPod touch will get $100 price cuts across the board.

The recently-introduced 16GB iPhone and 32GB iPod touch will drop from $499 to $399 while the 16GB iPod touch will fall to $299. 9to5Mac reports that the 8GB iPhone and 8GB iPod touch will drop to $299 and $199 respectively before being discontinued altogether.

Falling flash prices are cited as the reason for the price cuts on the two product lines. In the case of the iPhone, Apple may also be looking to clear a path to provide a comfortable pricing point for an iPhone with 3G capabilities.

One should look no further than to Creative to see the falling costs of NAND flash memory used in portable media players (PMPs). Creative announced its 32GB Zen player in December 2007 and priced it at $329. Two weeks ago, Creative dropped the price of the 32GB Zen to $299.

9to5Mac's inside sources provided no details on other flash-based products like the iPod nano and iPod shuffle. Hopefully Apple's generosity on its higher end products will also extend to its bottom-feeders as well.





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