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
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.
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.
quote: And I believe believe dropping the price by half for the iPhone barely past 8 months after introduction, and with a 2 year phone contract that Apple also is making big bucks on, is just a little much for me.