$200 bombshell

OMG! Steve Jobs dropped a bomb today angering thousands and making possibly millions very, very happy. About two months after the hugely anticipated iPhone launch Apple has slashed the price of the 8gb iPhone by $200 and will no longer sell the 4gb version. $399 is much closer to what most people (read: me) are willing to pay for a really good phone.

Ive stayed away from all the iPhone hype here on farbelow. For one, its was way to expensive for me to consider buying and, it doesnt have some features I need. In fact I was lusting after a different phone not long ago.

Whats really funny about this news is the reaction from a lot of iPhone early adopters. At the bottom of the Gizmodo link below you will see many users who, although they fully expect Apple to cut prices and upgrade the phone, did not expect it to happen so soon. Some go so far as to say they will boycott Apple, or at least will never be an early adopter for Apple products again. Man, not smart for Apple to piss of the faithful. That famous Jobs distortion field may not be as powerful in the future.

Its actually strange to me that Apple didnt say it was going to offer a 16gb version at the $599 price point. If people were willing to pay $599 for the 8gb, would they be willing to do the same for double the storage? Could be that sales are lagging now that the early adopters have been fleeced.

Gizmodo post on the price cut.

One more thing… Apple has upgraded all its iPods, one looks exactly like the iPhone and includes Wifi. The others are getting really small, thin, cheap and most include video- even the Nano! Check out the new lineup.