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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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.

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