Print 78 comment(s) - last by Zandros.. on Sep 10 at 2:19 PM

Apple does the unthinkable with the iPhone

Do you hear that sound? It's the sound of thousands of iPhone customers crying their hearts out. In addition to the new iPods, ringtones for the iPhone and iTunes Wi-Fi Music Store, Apple has announced a price cut for the iPhone.

Apple has dropped the 4GB model from the iPhone lineup. Its sales have been lagging behind the more spacious 8GB model so Apple decided to remove the dead weight. In addition, Apple has cut the price of the 8GB iPhone by $200 – the device will now retail for $399.

This move by Apple even undercuts the pricing for refurbished iPhones that was announced in late August. Refurbished 4GB and 8GB iPhones were listed on the Apple Store for $399 and $499 respectively.

Apple is being quite aggressive with its iPhone and the $200 price cut leaves room for a 16GB model on the high end in the future. Considering that the iPhone-esque iPod touch comes in a 16GB model, the move is inevitable.

Update 9/5/2007:
Although Apple is discontinuing the 4GB iPhone, that isn't stopping the company from offering it for $299 at the Apple Store until the supply is exhausted.

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the silence is actually...
By Quiksel on 9/5/2007 2:34:00 PM , Rating: -1
all the iPhone haters passing out.

maybe they want one now?

A good move for Apple, this will almost certainly increase sales by a significant amount.


RE: the silence is actually...
By TomZ on 9/5/2007 2:36:00 PM , Rating: 3
all the iPhone haters passing out. maybe they want one now?

No, thanks. Maybe if they cost $100 with a $100 MIR. There are just too many important features missing.

RE: the silence is actually...
By TomZ on 9/5/2007 4:09:49 PM , Rating: 4
Sorry, I didn't realize this was the Apple love thread. Well, carry on...

RE: the silence is actually...
By SunAngel on 9/5/2007 5:35:33 PM , Rating: 1
Any thread where DailyTech and its' goones make the winner an underdog, I will represent gladly!

RE: the silence is actually...
By Moishe on 9/5/2007 2:41:01 PM , Rating: 1
I'm not surprised, but wasn't expecting the cut so soon... In the end it's still way more than I'd ever pay for a phone.

RE: the silence is actually...
By retrospooty on 9/5/2007 3:27:42 PM , Rating: 2
Yup... Sales must not be as good as planned. Imagine that witha $600 2G phone LOL

RE: the silence is actually...
By TomZ on 9/5/2007 4:33:01 PM , Rating: 2
Yeah, that's right. After all, if sales were strong, a company would not cut prices. You only cut prices to stimulate demand.

And I agree with the sentiments expressed by others - if I had paid the old price for an iPhone just a few weeks ago, I'd be pretty annoyed to have a price cut so soon. It's kind of a slap in the face to Apple's customers who are early adopters. Apple may get punished for that when they launch their next product and lots of people hold out for a price cut.

RE: the silence is actually...
By gramboh on 9/5/2007 7:51:40 PM , Rating: 2
My roommate just bought a 4GB refurb last week, apparently Apple is going to give him a $150 credit or something. I forget the price he paid, but I guess it is still within the return window so they'd have to credit him or he'd send it back.

RE: the silence is actually...
By mdogs444 on 9/5/2007 2:42:44 PM , Rating: 2
Its not the apple brand that steers me away. Its the AT&T service. I will not switch to verizon, and to my knowledge, verizon does not use SIM cards (pending on what happens with the iphone hack)

Therefore, i am SOL.

RE: the silence is actually...
By ninjit on 9/5/2007 3:22:46 PM , Rating: 2
A little confused, but I think you meant you already HAVE Verizon service, and don't want to switch TO AT&T.

Anyways, Verizon uses CDMA for it's cell-service, AT&T uses GSM (which requres SIM cards as part of it's spec), that's why you don't see SIM cards on Verizon, and why a simple "hack" won't let you use an iPhone with them.

It will take Apple to rengineer the iPhone (not hard) to produce a CDMA version - much like Motorola has GSM and CDMA versions of their RAZR line.

RE: the silence is actually...
By Anh Huynh on 9/5/2007 2:43:52 PM , Rating: 2
I can't say that I'm not tempted by it....

RE: the silence is actually...
By enlil242 on 9/5/2007 2:48:05 PM , Rating: 2
I can't say that I'm not tempted by it....

Me neither. I was just thinking of upgrading my treo 650 to a different smartphone. $399 is about average. And now it the software hack to unlock it. I give it a big "Hmmmmmm." Plus it would allow me to sell my 4GB nano! AND with my $150 apple card! A bigger "HMMMMM"

RE: the silence is actually...
By h0kiez on 9/5/2007 3:53:59 PM , Rating: 2
Still not tempted. Sprint service is good in my area and I'm hanging on to my $30 a month SERO plan for as long as I possibly can.

RE: the silence is actually...
By miccla on 9/5/2007 5:44:28 PM , Rating: 1 with an unlocked iphone you still can ;-)

RE: the silence is actually...
By HopJokey on 9/5/2007 11:18:15 PM , Rating: 2
Too bad Sprint uses CDMA like Verizon...

RE: the silence is actually...
By kelmon on 9/5/2007 2:53:44 PM , Rating: 2
I'm wondering how this will translate to the European markets when it's released over here. The AT&T issue ceases to be a problem but I wonder it we're going to see the equivalent of US launch prices at release or a sensible price to begin with.

Mind you, it doesn't look like it's going to be coming to Belgium yet so I'm going to have to wait.

RE: the silence is actually...
By ninjit on 9/5/2007 3:28:32 PM , Rating: 2
2 things apple needs to fix to do well int he European market:
1. The Price - my brother in the UK gets all the latests phones from Nokia and Sony-Ericsson for free with only 1 year contracts (and no mail-in rebate crap). People over are used to not paying for their phones at all, where as here in the US we've already been conditioned to paying some for blackberries and treos.

2. 3G - HSDPA and other 3G data services have been available in Europe for a while now, and nobody there is going to accept a step-back to the plain old EDGE system.

From the Anandtech article on the iPhone, I gather that 3G radio ICs are both space and power hogs, and this is certainly the reason Apple left them out of the iPhone for now, but they aren't going to sell in the EU as is, it will need to be updated

RE: the silence is actually...
By Zandros on 9/5/2007 7:17:21 PM , Rating: 2
I agree with point 2, but point 1… You really don't think we're getting phones for free? Obviously the monthly fee is increased to also pay for the phone during the period of lock in. Anyway, not all phones are sold like that, the market is very diverse, pay-as-you-go is very common in some countries for example, and unlocked phones are readily available.

RE: the silence is actually...
By kelmon on 9/6/2007 4:20:05 AM , Rating: 2
Sorry but your first point is incorrect in the UK at least. You don't get the latest phones for free unless you have a very expensive contract. Typically you get a reasonable discount on the latest phones but it's a trade off between a higher initial price for the phone or a higher monthly contract rate. Previously I've had to pay between £50-£100 for "the new hotness" in order to get the phone on a monthly contract that is compatible with my relatively low usage.

3G may be a barrier for some people but I don't think that it will be market-wide (not an issue for me since I've never used it). It's going to depend on the implementation but bear this in mind - we don't have AT&T here.

By SpaceRanger on 9/5/2007 3:34:20 PM , Rating: 2
Once they switch carriers from AT&T to Verizon, I might consider it... Until then I hope everyone enjoys their toys.. .

RE: the silence is actually...
By rushfan2006 on 9/5/2007 4:50:31 PM , Rating: 2
Not quite...

The price point for me to get an I phone would literally be somewhere around the $50 point w/ the service plan costing no more than $50 a month tops.

And actually even if those prices were true - I still wouldn't rush out to get one, it would still take me some time to consider.

Why? Because I just don't see it as a practical device I need in my life.

I use a phone to make phone calls. I have a computer for the Internet/Research, I have a HD TV at home to watch movies.

For the folks about to reply with - yeah but what about when you want to do that on the go.....that's just it...I don't.

In over 30 years on the planet not once have I felt the need to watch a music video , movie or whatever "on the go". Its nice when its available, but its not a big impact on me to do without either.

I'm certainly not going to throw hundreds of dollars plust insane monthly subscription rates for something I just think is "nice to have" but will hardly ever use.

RE: the silence is actually...
By Michael Hoffman on 9/5/2007 5:29:28 PM , Rating: 2
I wouldn't mind getting one if AT&T/Cingular now works well in my area...

I am surprised there are so many people who say they won't even consider getting an iPhone until it is ~$100 or less!

RE: the silence is actually...
By TomZ on 9/5/07, Rating: 0
"We shipped it on Saturday. Then on Sunday, we rested." -- Steve Jobs on the iPad launch

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