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Apple Cuts iPhone Price by $200

By BetaNews Staff, BetaNews

September 5, 2007, 2:41 PM

Apple said Wednesday it is scrapping the 4GB iPhone in favor of a single 8GB model, while dropping the price substantially. The surprise announcement came after news of new iPod models, including the iPod Touch. The iPhone will now cost $399 USD.

At that price, the iPhone will only cost $100 more than the 8GB iPod Touch and the same as the 16GB iPod Touch. Although Apple could see a sales boost from those who felt the iPhone was too expensive at $499 and $599, the price cut may have the unfortunate effect of upsetting current customers, who paid $200 more just two months ago or less.

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By Frostek

posted Sep 6, 2007 - 1:59 PM

What's the problem? Early adopters always pay more for gadgets. They had bragging rights to their social circle for all this time, and they clearly though it was worth paying the original sum for the phone. They're "lost" nothing.

This is basic economics.

Score: 0

By Neoprimal

posted Sep 6, 2007 - 2:51 AM

For those 'confused' about the pricing...

The 4gb model has been discontinued, those being sold are being sold for $299.
The 8gb model which will remain in production (and be updated and such) will now be $399.

Score: 0

By kashin

posted Sep 5, 2007 - 11:47 PM

All you Apple zealots who stand in lines around the corner on the day the new iWhatever comes out deserved getting screwed out of $200. Hopefully you've learned your lesson, but I doubt it.

Score: 0

By Setian^Stalker

posted Sep 6, 2007 - 9:05 AM

Dont be silly, apple dont screw people over

Score: 0

By dvferret

posted Sep 6, 2007 - 10:13 AM

Except for they just did.

(hope you were kidding)

Score: 0

By mrp-

posted Sep 5, 2007 - 8:57 PM

Got my iPhone today.. shipped a few mins ago, should arrive tomorrow (overnighted).. yay

Score: 0

By yountmj

posted Sep 5, 2007 - 6:14 PM

Yay! It's cheaper than a PS3 now!

Score: 0

By bobthegoat2001

posted Sep 6, 2007 - 1:15 AM

What's a PS3?

Score: 0

By imafurby

edited Sep 6, 2007 - 5:12 PM

Another overpriced piece o' crap, although arguably with more entertainment value than an iphone.
(playstation 3)

Score: 0

By bigsexy022870

edited Sep 5, 2007 - 5:42 PM

I might get one now. But I still hate the 8gig limit. With the ipod classic topping out at 160gigs, it makes the iphone seem tiny. Sure the iphone does alot more, but the idea is to merge the phone with a ipod. So really at least 40-60 gigs is a min. not to mention they could have made a little bigger so they could add the storage space. People still would have got one.
Considering the iphone is almost a laptop with all the stuff it does i think the price is gonna make it fly off the shelves even faster.

Score: 0

By Paul Skinner

posted Sep 5, 2007 - 5:07 PM

I think people who bought an iPhone at release got officially pwned.

Score: 0

By yountmj

posted Sep 5, 2007 - 6:15 PM

True.

Score: 0

By jbaltz69

posted Sep 5, 2007 - 5:32 PM

LOL.

Score: 0

By saintchuck

posted Sep 5, 2007 - 4:56 PM

I do believe I just fell off the fence.

Score: 0

By dvferret

posted Sep 6, 2007 - 10:14 AM

LOL, how bad was the fall?

Score: 0

By horsecharles

posted Sep 5, 2007 - 6:49 PM

Hope it wasn't a picket fence. LOL
Everything still intact / nothing missing?

Score: 0

By speedmeister

posted Sep 5, 2007 - 6:06 PM

Until they release a new version with 3G data access I can't see myself buying an iPhone. Lacking a high speed data connection defeats the purpose of having a real web browser on it. If they had an iPhone with HSDPA/EVDO at the same price I would actually consider it.

Score: 0

By yountmj

posted Sep 5, 2007 - 6:17 PM

Exactly! What's the point of touting having the "real internet" and YouTube on a non-3G device?

Perhaps they're dropping the price to make room for an upgraded model that will reside at the old price point?

Still... just a mere 2 months after debut? Wouldn't put it past 'em.

Score: 0

By NULLedge

posted Sep 6, 2007 - 8:30 AM

from what i've seen the wifi is actually a very nice stand in for the 3G and the iphone is a bit easier to lug around than a laptop. 3G would be nice, but so would audio/video recording/sharing like the razr, a native im/text client like the sidekick, and bluetooth linking to your laptop so you could share your 3G or even EDGE connection with your laptop those times when you just want a bigger screen but are trapped in the boonies on a road trip.

Score: 0

By DudeBoyz

posted Sep 5, 2007 - 4:27 PM

I'm glad to see the price cut. I also think it's good to limit the number of models, because it means a more streamlined manufacturing process. Only one product run needed, only one series of parts to work with.

New tech often costs tons when it first hits, and then as they ramp up production, the initial setup costs are dispersed over more units.

A $200 price drop is substantial, and some customers may be ticked off, but it may just open up the iPhone to a whole new level of customer. Those who were on the fence before may just drop into the Apple side of the yard...

Score: 1

By billweh

posted Sep 5, 2007 - 4:11 PM

Talk about knifing your customers in the back! Nothing like taking advantage of the few people who actually support their company.

Score: 0

By Slimberg

posted Sep 6, 2007 - 9:47 AM

aint nobody tell u to go out and buy it the day it dropped. Sucks for YOU! Guess youll learn ur lesson.

Score: 0

By KSzostek

edited Sep 5, 2007 - 3:55 PM

For you early adapters I can only say one thing.

SUCKERS oh Steve did you good.

Score: 0

By uberfly

posted Sep 5, 2007 - 3:44 PM

Good strategy by apple. Soak the early adopters, then give no reason to the rest not to buy one.

Score: 0

By vtsai21

posted Sep 5, 2007 - 3:22 PM

What does this tell us? Don't buy ipod touch too early!! wait at least 2 months

Score: 0

By speedmeister

posted Sep 5, 2007 - 5:50 PM

Given that the 8GB iPod touch is only $100 less than the iPhone I am not all that clear that the iPod touch makes all that much sense right now. Other from being able to get a player with 16Gb of memory why would somebody buy the iPod Touch when the iPhone has more functionality for a modest increase in cost?

Score: 0

By NULLedge

posted Sep 6, 2007 - 8:32 AM

you might not want the "AT&T" attachment that comes with it.

Score: 0

By dvferret

posted Sep 6, 2007 - 10:16 AM

Well, gee, thats a pretty darn good reason...

Score: 0

By WeezulDK

posted Sep 5, 2007 - 3:17 PM

You KNOW some people are ready to kill Steve Jobs now.

Score: 0

By xyzcb1

posted Sep 5, 2007 - 3:16 PM

The title is wrong. The price cut is only by $100. The 4gb one is only for $499, and now at $399.

Score: 0

By yountmj

posted Sep 5, 2007 - 3:21 PM

You are wrong. There is no more 4GB model.

Score: 0

By nate

posted Sep 5, 2007 - 3:19 PM

No, the 4GB model was scrapped. The 8GB model went from $599 to $399.

Score: 0

By GS5

posted Sep 5, 2007 - 3:11 PM

Not too many people out there willing to pay $600 for a phone. Huh!!! LOL

Score: 0

By pitdingo

posted Sep 5, 2007 - 3:37 PM

The iPhone has been selling very well, even at the high price point. This move is surprising because of that.

Score: 0

By GS5

posted Sep 5, 2007 - 6:21 PM

Anyone with any business sense would tell you if your sales are going very well they would leave the price as is or even raise the price 10% to 15% not cut price by 33.3%.

Score: 0

By yountmj

edited Sep 5, 2007 - 6:34 PM

Good point. They are actually selling well though... just a month ago it tops the charts as the most popular "smart-phone". Sales may have slowed, but it's hard to believe that sales have slacked off far enough to justify a $200 drop. That's pretty substantial. They're up to something...

Score: 0

By xyzcb1

posted Sep 6, 2007 - 9:59 AM

There are iPhone refurbish for sales shortly after it was released. It tell you how much these sells are actually final.

Score: 0

By mrp-

posted Sep 5, 2007 - 8:58 PM

Maybe now that they're using similar tech for the iPod Touch they're getting discounts on components (screen and stuff) since they're making a lot more products.

Score: 0

By bobthegoat2001

posted Sep 6, 2007 - 1:19 AM

Well that would be the idea, but considering it's Apple... no.

Score: 0

By GS5

posted Sep 5, 2007 - 7:10 PM

The iPhone is selling quite well for a first generation phone but probably not as well as Apple hoped or needed it to. Whatever the reason for the price drop my best guess is that they are probably in some sort of a pinch. Who knows, maybe they need to pay the manufactures by a certain date and not enough iPhones were sold for that. It's not that uncommon for Apple to overreach.

Score: 0

By yountmj

posted Sep 6, 2007 - 12:50 AM

True, or perhaps they're maneuvering it into a better position to announce something else at the $599 (or even $499) price point, similar to Sony's approach with the PS3 recently?

Score: 0

By GS5

posted Sep 6, 2007 - 12:13 PM

With Apple you never know. But I can't wait to see what there next move is. At least it's never boring with these guys.

Score: 0

By tankist

edited Sep 5, 2007 - 5:42 PM

really???
are you saying that apple marketing team woke up one morning and thought "iphone is selling really well, lets cut the price and earn less money!" ?

these people will not do anything drastic like this without good reason

Score: 0

By terminalx

edited Sep 5, 2007 - 8:01 PM

I think they did the price decrease because of the ipod itouch, as its an iphone without the phone and costs half the price.

Score: 0

By speedmeister

posted Sep 5, 2007 - 6:02 PM

I know the early sales numbers were good. 1.8% of all phones sold in the US in July were iPhones accoding to iSuppli. I would be willing to be that sales aren't growing as fast as expected as most of the Apple acolytes have already gotten themselves an iPhone.

Many of the people coming into an Apple store looking at iPhones in the next few months are probably going to be a little more discerning than most early adopters. The price drop will probably make a big difference in closing sales for people that are interested in the iPhone.

Score: 0

By NULLedge

posted Sep 6, 2007 - 8:47 AM

agreed. i'd compare it to the sidekick which, from t-mobiles site "The T-Mobile Sidekick 3 retails at $399.99." in comparison, if i had to choose between a sidekick (which i loved dearly for its instant messaging abilities) and an iphone with more space, more promises, and more sex appeal, i'd get the iphone. as a sidekick 3 user, i'm sad to see danger dropped the ball with it. the sidekick slide, id, and the other next gen phones look like the same repackaged turds they gave out as sidekick 3s with little more to add than different colored wrappers.

/tangent

but for the money, the iphone is now competing with a whole new lot of phones and will presumably do very well against them.

Score: 0

By yountmj

posted Sep 5, 2007 - 4:42 PM

Agreed. Not to say that the price drop isn't a welcome one, but puzzling indeed.

Score: 0

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