Originally posted by vrapan
sorry for going so much off topic
On the contrary, FX rates are right at the nub of the issue. Once you remove tax from the equation, which you just have to live with, FX rate is the biggest issue for Apple in Europe at the moment beause the amount they are making just on FX rate (7-10%) is very, very, transparent to internet shoppers. It is the #1 reason I have held of buying a new Mac this year. Dropping prices like this will make it more likely that I will buy one.
The other issue is regarding whether Apple should continually change prices to reflect change of FX rate. If you compare Dell prices (minus tax) they don't charge such a premium for FX rate. That is partly because they are constantly tweaking the feature and their product range so that you can't really say, this system is cheaper or more expensive than last week, because you might be getting a bigger hard drive but less free software. However it allows them to keep the FX rate in line.
Apple has to continue in the direction of quiet product releases and upgrades without a MacWorld and with it a constant tweaking of prices. This price drop along with minor iBook updates are exactly the right way to go.
Sanj