Apple Slashes iPhone Pricing To $299, $399

Sep 5th, 2007 | By | Category: iPhone, iPods & Portable Media Players

iPhoneApple today slashed pricing on the iPhone, eliminating the entry-level 4GB model, and dropping the price of the 8GB model $200 to $399.

Pricing was the number one problem we identified in our list of 5 things Apple needs to do to fix the iPhone, so we’re not surprised to see the dramatic price cut. We’d still like to see Apple fix publishing from the iPhone, intro power-user phone features, offer a bluetooth iPhone keyboard and fix developing for the iPhone.

While Apple is on track to sell its one millionth iPhone before the end of September, sales have fallen short of expectations, and pricing was the major culprit.

“The surveys are in and iPhone customer satisfaction scores are higher than we’ve ever seen for any Apple product,” said Steve Jobs, Apple’s CEO. “We’ve clearly got a breakthrough product and we want to make it affordable for even more customers as we enter this holiday season.”

The 8GB iPhone is available immediately for $399 in the US through Apple’s retail and online stores and AT&T retail stores. Apple is blowing out the 4GB iPhones for $299, and also has refurb 8GB models for $349.

The price cuts, along with the introduction of the iPod touch, are likely to quickly turn Safari from a loser in the browser war to a contender with Firefox for the number two position, after Microsoft Internet Explorer.

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