Following the launch of an entire new series of iPods yesterday, Apple has unexpectedly cut the price of the iPhone in the US. It's slashing the price of the 8GB iPhone by $200 to $399.

According to a report in today's New York Times, Apple founder Steve Jobs said he was confident that Apple would hit its publicly declared target of selling one million iPhones by the end of this month (it went on sale in the States on June 29).

But some industry analysts believe that while sales got to 750,000 quickly, they then started to slow down.

"It's very clear we have a breakthrough product on our hands, but while it's clear that many people can afford it, some can't," admits Jobs.

Investors appeared to take the news badly, with Apple's stock falling more than five per cent and closing yesterday at $136.76.

More after the break

How the price cut will affect the cost of the iPhone when it goes on sale in the UK later this year remains to be seen. At today's exchange rate, a $399 iPhone should, in theory, cost £210 in sterling.

But given that the new 8GB iPod Touch is about to go on sale for £199, and the 16GB version for £269, somehow we can't see that happening.

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