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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: Wow
By Spotacus on 9/6/2007 1:31:41 AM , Rating: 2
Because you can buy an iPhone from Apple or AT&T for the same price, which suggests that they aren't subsidizing the cost. If Apple wasn't selling them separately, we wouldn't know. Or if Apple sold it for more like the other phone makers like Motorola, then yes it would be subsidized.

But to say
quote:
You might buy it for $399 at the store, but Apple is getting $499+
when that store might be an Apple store, not an AT&T one? Probably not happening.


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