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do we anticipate the price ($399) dropping anytime soon?

What would probably happen is one of two things:

1) a $50-100 price drop for both models (8GB for $299 or $349, 16GB for $399 or $449)

2) A new 32GB model that bumps the 16GB model down $100 and the 8GB either down to $299 or out of production. However, I doubt we see 32GB until we see the 3G phone.

I think there is a little pressure on Apple to get a $299 model out there to expand the number of users, but they may see it as cost-inefficient to have 3 models.
 
I think the 3G phone will obviously push the price down on the current 2.5G phone. The real question though is will they discontinue the current phone when the 3G phone is released.

If they follow the model they use with the computer products, you would expect the 3G phone to replace the existing phone at basically the same price points.

It's all a big guess though. No one knows what Steve is going to do until right before he does it...
 
I think the 3G phone will obviously push the price down on the current 2.5G phone. The real question though is will they discontinue the current phone when the 3G phone is released.

If they follow the model they use with the computer products, you would expect the 3G phone to replace the existing phone at basically the same price points.

It's all a big guess though. No one knows what Steve is going to do until right before he does it...

Since 3G is backward compatible, I would guess that they would discontinue the EDGE phones. I think the difference is some chip hardwired into the phone's circuit board, so it would be costly to continue to sell the EDGE phones. Considering Apple won't even GIVE US THE MATTE OPTION ON IMACS, I doubt they'll do anything aside from put the present iPhones on clearance.
 
Since 3G is backward compatible, I would guess that they would discontinue the EDGE phones. I think the difference is some chip hardwired into the phone's circuit board, so it would be costly to continue to sell the EDGE phones. Considering Apple won't even GIVE US THE MATTE OPTION ON IMACS, I doubt they'll do anything aside from put the present iPhones on clearance.

Assuming that happens, then I can't see them lowering the price of the iPhone much, until they lower the cost of the iPod touch. it's pretty amazing to me that the iPhone is only $100 more than the iPod touch.

As long as you want a new iPod, the cost doesn't seem to be much of an issue. The issues comes up though when you look at the cost of the iPhone against a $99 or free phone - even though there is no comparison...
 
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