iPhone Sees $200 Price Drop

Where's my $200 back? I have to admit, that was the first thought in my head. Selfish, selfish, I know.

The price drop was a very wise move for Apple to make, especially before the Holidays. Everywhere I go, people tell me they love the iPhone, but, "It's just too expensive." There was no way around that.

So, what will a $400 price tag mean? First, it means that the new iPod touch won't sell. Let's see, an 8 gb iPhone for the same price as a 16 gb iTouch? I think I'm going with the iPhone. Some would argue there is the little matter of $60 a month over 2 years for phone service. But people are paying that much for their current cell phone. Might as well do it on the iPhone as a crappy Samsung flip phone. So, does a $400 price tag mean sales of say, 5 million, by January 1, 2008? I would guess no, but I'm no longer a teenager, and teenagers are the ones you gotta sell it to. $400 sounds about right for a good Christmas gift for a spoiled middle class teen, a no brainer for a rich teen, but it's too expensive for most regular to lower middle class teenagers. I think their parents will be buying them a Wii instead.

Did you catch how Steve Jobs said Apple was getting ready to sell their millionth iPhone? I honestly thought they had sold more than that, but when I think about it, it makes sense due to its limited market. 1 out of 30 people own an iPhone in the US (assuming all patrons were US citizens, which they weren't).

The price drop means one more thing: Apple is a lot smarter than Sony. Sony should have taken the early adopter's money and dropped the price of Playstation 3 to meet or beat the 360's price by now. I don't care what it costs to make it. You want to stay in the race, don't you? But I am curious, why did Apple price the iPhone so high in the first place? I feel like I had to pay the I'm-a-single-dude-with-discretionary-income tax. Ya got me Steve Jobs. Ya got me.