If true that they will sell 1 million by end of September then why lower the price now. I know SJ said because of XMAS. Could it also be that they need to make room for a higher priced iPhone "prior" to hitting foreign markets. SJ said sales outside of US starts next quarter in interview with CNBC today. Maybe they just need a lower cost entry point because of no 3G. I would have never guessed new hardware this year. However, I would never have guessed a $200 discount after only 60 days and also dropping the 4gb version. If this is really for XMAS then why not lower the price just prior to Thanksgiving Weekend (start of xmas shopping season). I just do not understand why lower the price now. Maybe because the IPOD Touch is so much less expensive.