Somehow I think that sales will be disappointing, especially as the economy has taken a dive and increased energy, food, and mortgage costs are making a lot of people feel pretty poor.
I think you're right. Apple are desperately trying to get the prices of iPods down and the value for money up. Nobody really needs a £400 phone, it is a luxury item no matter how useful some of its functions. There will be no doubt a price drop before long.