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$100 Price Drop on iPhone and iPod Touch?

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9to5Mac believes that the iPhone and iPod touch will be seeing $100 price drops in the next two months, simultaneously discontinuing the low capacity models.

Their belief is that the 8GB Touch and 8GB iPhone will be discontinued, leaving a 16GB iPhone at $399, 16GB Touch at $299, and 32GB Touch at $399.

The move would be reminiscent of the $200 iPhone price drop and discontinuation of the 4GB iPhone that took place in September, 2007. The surprise iPhone price drop -- only 3 months after the introduction of the iPhone -- caused an outcry amongst early adopters. The outcry was so great, that Steve Jobs posted an open letter to explain the decision and gave existing iPhone owners a $100 Apple store credit.

Based on this experience, it seems Apple would be reluctant to make a similar move when they could have easily timed the price drop to coincide with iPhone/Touch updates last week. This being said, the iPhone is still expected to receive further updates this year with the introduction of a 3G model in 2008. It's possible that any future price drops could correlate with the introduction of the 3G iPhone. AT&T has already committed to expand their 3G network to more U.S. cities in 2008.

While 9to5mac had an excellent early rumor record, their record has not been perfect, with their recent claims of 5 million iPhones sold by Macworld failing to come true.

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lyngo

macrumors 6502a
Sep 10, 2007
675
845
lovely...

That's just great. First $20 for an ipod touch update... now this... sheesh.

- Jay
 
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irun5k

macrumors 6502
Jan 14, 2005
379
0
This wouldn't be such a surprising price cut. The cheapest iPhone on the market would still be $399. This is pretty much the trend as I see it in technology- mainstream computers and gadgets stay about the same price but you get more and more for your money.

The thing that happened last year was bizarre because after only three months they orphaned the 4GB model and made the 8GB model $200 cheaper, and $100 cheaper than the previously least expensive model.
 
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Zneo11

macrumors newbie
Jun 2, 2007
26
0
I don't think a price drop this soon is going to happen. Its more likely that a 32gig comes in and bumps the 8 out. However, I think that is unlikely this soon as well. I also don't trust 9to5. Lately they have had some sketchy reporting.
 
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Merkuryy

macrumors regular
Jun 10, 2007
175
0
Shanghai, China
The surprise iPhone price drop -- only 3 months after the introduction of the iPhone -- caused an outcry amongst early adopters. The outcry was so great, that Steve Jobs posted an open letter to explain the decision and gave existing iPhone owners a $100 Apple store credit.

God!!! I believe that's really true, the 32G version go on stage 7 months earlier than I expected (I used to think that the Sansa View and Creative Zen were the only device which use 32G Nand Flash), so a price drop is truly possible!

But I doubt AAPL will again give check to customers, the additional cash for the software update of the iPod Touch mean that AAPL don't have such respect to them as the iPhone users.

Also in this way, we won't see a Nano mixed with Touch style iPod this year, AAPL will still use the current iPod Touch style to conquer the market.Damn!! I really wish they can give me a store credit;), one can never have enough Apple product
 
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harrisone23

macrumors member
Nov 1, 2007
69
0
Hope so.

Im probaly going to sell my 16GB touch on eBay when these "price drops" happen and then get myself a nice shiny 32GB touch.
 
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jbernie

macrumors 6502a
Nov 25, 2005
927
11
Denver, CO
I guess the concern would be that once the 3G models become available the current Edge models will be viewed as obsolete. So reducing production to reduce the amount of unsold inventory and a price reduction to encourage sales of said inventory is likely to occur prior to the 3G models being officially announced.

That said, I won't consider an iPhone until the 3G model is available.
 
Comment

corywoolf

macrumors 65816
Jun 28, 2004
1,352
3
That's just great. First $20 for an ipod touch update... now this... sheesh.

- Jay

Surprise surprise. This is excellent news though. You can't complain on a price drop, I mean you can obviously afford it in the first place. If you can't, then you are probably not a financially savvy individual. It's simple, don't spend what you can't afford. Save and buy when the time is right, and don't complain about depreciated value. Virtually all electronics loose value over time. It's smart of Apple, get the people that can afford to pay more for having the gadget earlier then everyone else, then drop the price when demand slows and repeat. Oh and this is probably a troll.
 
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juanster

macrumors 68020
Mar 2, 2007
2,238
0
toronto
i don't see it happening, i just bought a 16Gb touch a couple of weeks ago and i am still happy about the purchase, if they get a discount then whatever I don't care...;)
 
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Merkuryy

macrumors regular
Jun 10, 2007
175
0
Shanghai, China
BTW, Does anybody knew which Nand flash the Creative Zen, Sansa View and iPod Touch is using? Can not find a image, is this a 16G duo like the one we have in some 1st generation iPod Nano(2G duo)?
 
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syklee26

macrumors 6502
Jul 26, 2005
420
433
after going through $200 price cut debacle, I highly doubt Apple will cut the price in Feb 26th event. They just released the 32gb touch and 16gb phone for 499 each.

I would say probably sometime in April or May (or around when new iPhone is released)
 
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Grimace

macrumors 68040
Feb 17, 2003
3,544
57
with Hamburglar.
I think they are both priced quite competitively. But, Apple may be going for the chokehold and want to simply kill everyone else on price.
 
Comment

mas90guru

macrumors member
Dec 30, 2007
82
1
Connecticut
Is this prediction really that much of a leap of faith?

Haven't there been a significant number of rumors of production cutbacks on iPod and iPhone lines? This would all be a rather obvious off-shoot of such rumors.

Personally I think the EDGE line must be phased out at the time that 3G is introduced -- unless they drop the existing EDGE to Refurb status.

As someone pointed out, once there is a 3G model, who will buy EDGE?
 
Comment

sellitman

macrumors regular
Feb 25, 2007
211
7
CT
Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU like Mac OS X; en) AppleWebKit/420.1 (KHTML, like Gecko) Version/3.0 Mobile/4A93 Safari/419.3)

I will wait for a 32 gig 3G iphone then give my 8 Gig to my son.
 
Comment

basesloaded190

macrumors 68030
Oct 16, 2007
2,693
5
Wisconsin
i guess i just don't see why people can get so upset about something like this. i think it was almost inevitable this was going to happen. these types of things do occur quite frequently and people should realize that technology moves so quickly that its impossible to keep up. i wish we could all just take what we have and enjoy it without having to whine about it constantly
 
Comment

macman2342

macrumors newbie
Feb 3, 2008
7
0
Prediction

Ok, I actually think this rumor is right. Two weeks lines up with the rumored apple event at the end of February. I predict that this event will be the launch of the iphone SDK and a new model of iphone, an iphone pro if you will. This will be more expensive, include 3g and GPS. Maybe some other surprises, portable iwork or something to make it more like a PDA. (and in my dreams, a built in isight for portable ichat, but that part is unlikely)

With the announcement of Garmin's Nuvifone with real GPS, Apple's under pressure to offer a device with that capability. Since not everyone needs GPS or a pda, why not have an iphone pro with pro-like features. This will be marketed as a handheld computer, not a phone.

Anyone agree?
 
Comment

SirOmega

macrumors 6502a
Apr 17, 2006
704
2
Las Vegas
Unlikely, at least until May. Then Apple can say its sufficiently far from Christmas and the introduction of the larger capacity phones as to not make those folks angry.

The collapse of flash prices helps out a lot - 16GB of flash now is about the same price as 8GB was a year ago. This sets the stage for the 16GB iPhone 3G at $400.

I expect the price points to stay where they are. I dont expect a cheaper phone until mid-09, and a cheaper touch until around the same time.
 
Comment

clevin

macrumors G3
Aug 6, 2006
9,095
1
huh, I sure would reconsider a $199 8G iPT, I would love a $99 4G iPT as well.
 
Comment

Frisco

macrumors 68020
Sep 24, 2002
2,475
69
Utopia
Dear Lord Apple is just as delusional in the late 80s and early 90s. If the Pats were given this many second chances they would be 19-0.
 
Comment

Grimace

macrumors 68040
Feb 17, 2003
3,544
57
with Hamburglar.
Ok, I actually think this rumor is right. Two weeks lines up with the rumored apple event at the end of February. I predict that this event will be the launch of the iphone SDK and a new model of iphone, an iphone pro if you will. This will be more expensive, include 3g and GPS. Maybe some other surprises, portable iwork or something to make it more like a PDA. (and in my dreams, a built in isight for portable ichat, but that part is unlikely)

With the announcement of Garmin's Nuvifone with real GPS, Apple's under pressure to offer a device with that capability. Since not everyone needs GPS or a pda, why not have an iphone pro with pro-like features. This will be marketed as a handheld computer, not a phone.

Anyone agree?

No. Apple isn't stupid enough to announce two new updated models, then drop the prices $100 two weeks later. The issue last fall was far longer than that, and Apple learned from it.
 
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