CEDIA NEWS: Apple slashes price of iPhone in the US

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.

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.

Technorati Tags: Apple iPod, iPhone, MP3, MP4

Andy Clough

Andy is Global Brand Director of What Hi-Fi? and has been a technology journalist for 30 years. During that time he has covered everything from VHS and Betamax, MiniDisc and DCC to CDi, Laserdisc and 3D TV, and any number of other formats that have come and gone. He loves nothing better than a good old format war. Andy edited several hi-fi and home cinema magazines before relaunching whathifi.com in 2008 and helping turn it into the global success it is today. When not listening to music or watching TV, he spends far too much of his time reading about cars he can't afford to buy.