The Reason for the iPhone Price Cut

leave a comment »

Daniel Dilger over at RoughlyDrafted hits the nail on the head:

Priced at $299 for the 8 GB model and $399 for the 16 GB version, the iPod Touch delivers the iPhone’s splashy, multitouch Coverflow iPod features and its “breakthrough Internet device” functions via WiFi and the mobile Safari browser. It’s nearest competitor is Nokia’s N800 Internet Tablet, which costs $399, only provides a quarter of a GB of Flash RAM, and requires a stylus to use. The iPod Touch is also gunning to replace the hard drive based “iPod Classic.”

Apple could have left the iPhone priced $300 above the 8GB iPod Touch, but by dropping the price, it makes it very difficult iPod users tempted by the Touch to not simply spend the extra $100 to gain a phone, Bluetooth, and a camera. Since Apple’s iPhone also earns the company a share of service revenues from AT&T, pushing as many iPod Touch users toward the iPhone as possible makes a lot of sense.


Written by Kumaran Vijayan

September 6, 2007 at 8:12 am

Posted in Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: