Oh Blah Dee Blah Dah

Enough Noise About Apple!

Steve Jobs got it right. Apple replaces models with a similar price and more features or capability. I believe this is EXACTLY what it is doing in this case. The European iPhone will probably have 3G and more memory, and it will take the place of the original U.S. iPhone at a comparable price. The original U.S. iPhone will be repositioned as a second, and lower-end model, in terms of features and capability, than the new flagship European model. This new European model may also be available in the U.S. as a higher-end U.S. model.

If Apple lowered the iPhone priced AFTER the holidays, very few buyers would have complained. Being that all of the iPhone components are available from suppliers, and the the U.S. iPhone roll-out showed few product defects and service problems, Apple realized that it could ramp up production of a reliable product BEFORE the holidays.

Mobile phone purchases are now a big holiday purchase. By lowering the price now, Apple will be getting customers beyond its normal user base. If Apple did not do this now, these customers could have purchased another mobile manufacturer's product during the holidays, and Apple would not get another chance at these customers until their one or two years service contract expired.

The lower price of the iPhone would have come ANYWAY! The only difference here is that it came sooner rather than later.