IPhone Price Reduced by $200

I would hate to have bought one of these things at launch.

Apple said the price of the iPhone model with 8 gigabytes of storage
was cut to $399 from $599 and that it would discontinue a model with less
memory.

"Apple has always been aggressive with price cuts to keep the
competition at bay," Shannon Cross of Cross Research said.

The idea that they are discontinuing the IPhone with less memory is kind of scary if you own AAPL stock. Was that model selling very poorly or did it just cannibalize sales from the 8 Gig model?

Also that $200 seems like a real steep cut. Could competition from the Blackberry or other smart phones actually make Apple lower the price sooner then they wanted to? Maybe IPhone sales were trending lower and the idea of selling 10 million IPhones by 2008 started looking unattainable. You would figure that sales to non-early adopters would be soft with IPhones costing the same as four Blackberry Pearl 8100s. All this could be bad of AAPL shareholders. This however is good news for me:

The new touch-screen iPod will have many of the features of Apple's hit
iPhone, including a touch screen, the ability to connect to the Internet
wirelessly using Wi-Fi technology, and a mini Web browser.

"We've built in Wi-Fi and we've made it usable," Jobs said, in what
could be seen as a dig at Microsoft's Zune, which beat the iPod to market with
Wi-Fi but has not enjoyed the iPod's popularity.

I would seriously consider buying a Wi-Fi enabled IPod if I could browse the Internet wirelessly. I don't listen to music much but I do surf the Internet everyday. However I would have to read the reviews on how well it grabs onto hotspots. If it is a chore to get connectivity whenever I want it then I will fail that IPod.