It's simple: iPhone = iPodTouch + phone. iPodTouch is $299, so how can Apple continue to charge a $300 premium just for the phone capability ?! It can't, and that's why it HAD to drop it $200.
Now, did they know they were making such a premium before ? Sure, they had to know it, but they couldn't sustain it anymore with the iPodTouch at $299. Whatever though, everyone knew the iPhone was overpriced, but the Apple zeolots were going to buy it at any price anyway.
Now that we've thrown 'em off the trail, use the form below to get in touch with the people at Engadget. Please fill in all of the required fields because they're required.
It's simple: iPhone = iPodTouch + phone. iPodTouch is $299, so how can Apple continue to charge a $300 premium just for the phone capability ?! It can't, and that's why it HAD to drop it $200.
Now, did they know they were making such a premium before ? Sure, they had to know it, but they couldn't sustain it anymore with the iPodTouch at $299. Whatever though, everyone knew the iPhone was overpriced, but the Apple zeolots were going to buy it at any price anyway.
Seeing as how the iPhone came first, I'd say it's more like iPodTouch = iPhone - phone.