updated 02:25 pm EDT, Wed September 5, 2007
iPhone Price Drop to $399
Apple today surprised the audience at its "The Beat Goes On" event with a dramatic reduction in price for the iPhone. Effective today, the 8GB model that was previously on sale for $599 will now sell for $399; no word has yet been received about the 4GB model, which is now expected to be phased out in favor of the 8GB version alone. The company did not explain how the company could justify the drop but noted that the cut was intended to be a companion to the iPod touch, which includes most of the same features at $399.
"We want to be even more aggressive than [what we've launched today]," said Apple chief Steve Jobs at the event. "We want to make the iPhone even more affordable. [And] customers buy the 8GB iPhone overwhelmingly, so we're focusing on that."
The price drop may in part have been spurred by high sales of the touchscreen phone, which went on sale in late June but is already said to have claimed the top spot in the US cellphone business, claiming 1.8 percent of all phones in a recent study.