Apple Inc. announced a price cut of $200 for their iPhone on Wednesday (September 5), as well as introduced its iPod media players, which features a touch-screen and other iPhone similarities.
The new 8 gig iPhone will now sell for $399, just months after being released, while the 4 gig phone will be phased out, according to the Associated Press.
The move is out of the norm for Apple, who usually keep prices the same on products, but add new features and storage capacity.
Analysts feel the announcement will boost sales of the iPhone, but questioned the move. “It will absolutely help sales — but at what cost?” Tim Beyers, an analyst at The Motley Fool research and investment group, asked the AP. “People who bought the iPhone weeks or months ago must really be annoyed, and with good reason they might think twice about being the first to buy future Apple products. This smacks a little of desperation, and it’s very unlike Apple.”
In addition to the iPhone price break, Apple CEO, Steve Jobs, unveiled a new version of the iPod on Wednesday, which has a touch-screen like the iPhone, wireless Internet access and a Web browser, but does not have cell phone capability.
The iPod Touch, as its being referred to, allows users to download songs wirelessly, and, as also announced Wednesday, will soon allow people sample and buy digital tunes from any Starbucks in the United States that offers Wi-Fi Internet access.
Accord to the AP, the new iPod is less than a third of an inch thick and can be used for storing photos, music, videos and other digital data. It features the same almost nine-centimeter, touch-screen display as the iPhone, on which light finger touches allow the user to scroll through menus, and two fingers are used to resize pictures.
It also has built-in wireless Internet access, which you can browse the web via the Safari web browser.
The iTunes Wi-Fi store will for the same price as the regular store, which charges 99 cents per song.
The new Nano, which will be in stores starting this weekend, will come in a four-gigabyte version for $149 in the United States, and an eight-gigabyte version for $199.