iPod touch If the 3g iPhone is $200, What happens to the touch?

The touch as no contractual ties. Subsidies to the iPhone will be given by the carrier, not Apple. I wouldn't expect a discounts to the Touch.

The actual tag price wont be $200. Certain people will be able to get it down that low after subsidies from at&t etc...They would make very little money if the iphone had an msrp of $200.

Wirelessly posted (iTouch 1.1.4 (pWN'd + JB'd): Mozilla/5.0 (iPod; U; CPU like Mac OS X; en) AppleWebKit/420.1 (KHTML, like Gecko) Version/3.0 Mobile/4A102 Safari/419.3)

edesignuk said:

The touch as no contractual ties. Subsidies to the iPhone will be given by the carrier, not Apple. I wouldn't expect a discounts to the Touch.

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Exactly. AT&T is subsidizing the new iPhone because they can attract more customers, locking them into a 24 month contract, if they make the phone less expensive up front. The iPod touch, of course, is not a source of recurring income for anyone (unless you count Apple nickel-and-diming us with the software upgrades, but that's a different can of worms, lol) so there is no incentive for anyone to discount it.

OP- If your thinking you can pay $200 for an iPhone and not pay the contract, you cant. What they will do is charge $500 for the iPhone, then when you enter into the contract give you a $300 rebate, or something along those lines

yourmacisjon said:

Just wondering what you all think about the rumors that the iphone may be as cheap as $200 after today. Pricing wise the touch has always been cheaper than the iphone because it has fewer features, so what happens if the iphone becomes cheaper? Does the touch die out or does it get a price cut as well?

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1)The touch is going no where if anything it will become even bigger in terms of success.

2)The new iphone will cost about $200 on a contract.Or about $500 on a pay as you go form.