iPhone and iPod touch to get $100 price drop soon?
By Nilay Patel 
posted Feb 18th 2008 2:18PM
posted Feb 18th 2008 2:18PM
This one's still just a bunch of whispers and coincidences, but we've been hearing that Apple may lower prices on the iPhone and iPod touch in the next few months and drop the 8GB touch. Word is that falling flash prices coupled with the desire to introduce the 3G iPhone at an attractive price point will lead to the 16GB iPhone falling to $399, along with similar touch price drops: 16GB for $299 and 32GB for $399. It's not clear what'll happen to the 8GB iPhone, but everyone seems to agree that the 8GB touch is on the way out -- we actually think a $199 8GB touch would fly off shelves, but that's probably cutting margins razor-thin. We'll see when we see -- and if flash prices are really falling that fast, it'll be interesting to see what happens to iPod nano pricing as well.
Apple wouldn't do that after the nightmare that was iPhone price cuts.
I would be so PISSED if the 3G iphone comes out this year. I just paid $500 for the 16GB. If I new this a few weeks ago then I would have waited.
@BigBoy
Honestly, that's the risk you run buying ANY kind of technology. Yeah, it sucks, but if you always wait because something better may come out, you will never get anything.
@BigBoy
You are an idiot. 3G iPhone IS coming this year and we knew this months ago. No one to blame but yourself.
HA HA HA HA That is why I am waiting sucker ha ha ha " There's a sucker born every minute" My favorite quote and Steve Jobs as well :)
@dagamer34
So if someone has a different opinion than others, they are idiot? hmm what that makes you?
@Will,
Dood, I know your frustration, I can totally relate. But like others saying that's the risk of being an early adopter. I bought my iPhone the day it came out. Sure it sux so bad, but meh I'm actually looking fwd to the next iPhone,.. the 3G version if you will.
They dropped the price on the 5th-gen pre-Classics by $50-100 and nobody seemed too angry over that. The issue with the iPhone was that they sold them at an artificially higher price point just to make more money, as opposed to one based on the cost of components.
"I would be so PISSED if the 3G iphone comes out this year. I just paid $500 for the 16GB. If I new this a few weeks ago then I would have waited."
Who the hell doesn't know that there will always be something newer and better out?
I bought a 2007 Honda Civic about a year ago but do you know what Honda did?!?!? They started selling a 2008 Honda Civic two months after I bought mine!! It had a couple of improvements, some added options and the gas mileage even went up by about 2 mpg. I am so angry!!! I'm thinking that I want my money back or a percentage of the purchase price back as a rebate or a gift card now. I mean, I bought something and a couple of months later they released a model that was better and less expensive. How is that my fault?!?!?
Hmmm....3G iPhone or Android phone....hmmmm
I love apple products (fanboy I guess, not the trolling kind) but Google Androids stuff is looking very promising :)
Hmm......thinking...
The PS3 is the only piece of equipment that gets WORSE as Sony evolves it.
Launch 60GB PS3 FTW.
If there's a price cut less than 5 months after release, there's going to be hell to pay. Not to mention a shitpile of rebate cheques.
they'll prolly just just bump nano capicity and keep it the same price?
Just curious, Can you not replace a 32gb ipod touch hd with the iphones?
No, the 32GB iPod touch uses 2 16GB chips- but the iPhone only has room for one chip though, because it needs room for the phone stuff
I love that: "They discontinue, not price reduce." Have you ever heard of the great iPhone price reductions? You know ... the one which caused near-riots when it first was announced?
Personally, the iPhone is getting seriously competitive, unless you live in a different world from most people.
This proves 1 of 2 things:
1. No one is buying.
or
2. Just like how the Motorola Razr was a $500 phone, now are given out free.
"This one's still just a bunch of whispers and coincidences"
If you claim this is proof of a set of alternatives, let me complete the set:
3. You are clueless
That ain't how apple works unfortunatly. They discontinue, not price reduce. For Example, the 4GB iPhone.
u are one sexy bitch
yeah I think a $199 touch would kill the nano. Sure some people would still opt for something better used in work outs but still...I don't see that happening.
I don't want something as big as the touch. I don't think I'm alone...
Any price drop for the touch will (eventually) be complimented by a drop for the Nano. Or a capacity hike.
Liam
I'll sell you a hardly used IPOD nano for 100 bucks.
Problem is, it has my name and handle engraved...
I bought an IPHONE, I don't ever use the nano anymore.
I agree. I want my flash players small and I don't mind having a HDD with my video player. It's going to have a big screen, so paying a premium for flash on a video player is unnecessary with current flash prices.
This is why I have a 2nd gen nano as my music player and an Archos 605 as my video player and won't be buying a new iPod until at least the new lineup in September. Leaning toward a new iAudio though, if they fix the interface.
Anything less than 16GB of storage is useless to me (32 would be really the ideal number, but I can survive 16), but with rumors of price cuts theres no way I'm going to go buying a 16GB iPhone for $500. Come on Apple, I finally have the money, now all you need to do is deliver the goods at a reasonable price.. (I would even pay $500 if I wasn't looking at a $175 termination fee with Verizon).
I just switched over from Verizon and AT&T paid my $175 fee to switch
Cue the lawyers in 3...2....1....
What lawyers? A manufacturer has the right to lower and raise the price of the products any time they want to. They don't need the customers' permission to do that. Now, a consumer has a right to decide if they want to buy or not, and competitors as well force companies to lower the price of their products. Remember when the Zunes first came out? The iPod with video went down between $30-50. That was the result of competition in the horizon.
@Rob
The last time Apple price dropped and discontinued a version of the iPhone people got their shit all bent out of shape, who's to say some idiots won't try it again.
I could care less if something dropped in price days or weeks after I bought it, I didn't wait and paid more for something at the time. I bought a 4200+ X2 right before AMD did a massive price drop of around 33% on the chip. It was rumored to possibly be happening, I bought early and got burned within a months time. My mistake, the first thing that crossed my mind was not litigation.
Why do people feel that the price of something should never drop after they've bought it. It's not an investment. You're buying a disposable item (yes, even an iPod/iPhone is disposable) that won't be worth much in a couple of years. If you think it's $100 overpriced, don't buy it now. If you want to be in the club today, then it will cost what Apple says it costs.
More hardware/pricing changes? I already bought the phone, I just want my SDK, Apple!
Agreed. It's February, Steve.
Hey, Hey, Stevie J!
Where the F**k Is our SDK?
They need to stop dropping the lower models. I would never buy an iphone for $400, it's just too much money for a phone. If they drop the 8gb to $300 I'd consider it but realistically I wouldn't buy it unless it's $250 or less. It could be the 4gb iphone for $250, but I think it would pull in a lot more customers.
Yupp they will. When Apple introduced the 32GB touch I laughed. The first thing that crossed my mind was that Apple are bound to drop the price 2-3 months after launch, because these days a DAP priced at $500 is blasphemy. Those who have bought one can officially feel like deceived early adopter Apple fanboys.
I would buy a $399 32gb iPod touch. I'm happy to hold off on one until the prices drops, which is eventually will.
agreed
i'm actually purposely waiting for the price to drop, since i know that it will maximize the time between burning sensations in my brain knowing apple lowers their prices every couple months.
If there is one thing that always rings true on this little planet of ours.
Whatever you buy. No matter how long you wait. Will drop in price 32-45 days after you buy it.
As the saying goes:
If it's too good to be true, Apple will not do it and you're left dreaming and SOL.
Or something to that effect. Anyway, at $299 or even I could totally see the 8GB iPhone fly off the shelves. And with the SDK coming out, 2 of the big foibles with the iPhone will have been (somewhat) treated: its uber-expensiveness and closed platform.
Sweet. And to think I just paid $437 for my 8gb iPhone 5 days ago.
you've got time to return it then.
3G please...
I'd like to get the iPod touch, but not until the prices come down to the 30gig "video" version. When the flash storage joins the 32gigs and a price of $250, then I'd buy. $299 for 8gigs is too expensive.
I've been desperately trying to hold off getting a 16gig iPhone ever since ZiPhone was released, and the only thing really holding me back was that my music collection currently stands at abut 17gig. Although it can be pruned back (I mean, do I really need the entire Flaming Lips back catalogue?) it would leave me with very little room for new stuff.
Damn you Apple, just release an easily hacked 32gig iPhone already!
Damn, I just bought an iPod Touch on sale for 350$ (withou the new software bundle).
"we actually think a $199 8GB touch would fly off shelves, but that's probably cutting margins razor-thin."
LOL! Only at Apple would a 60% profit margin be considered razor thin.
Way to discount the engineering costs and Apple's ridiculously expensive marketing campaigns.
Way to discount the effects of long term fixed costs.
You got to love Apple's ridiculously expensive advertising campaings. I mean, the iPhone has sold what? 4.5 million units? And you see an iPhone commercial at least once a day. But the HTC Touch, which has never been marketed at all STILL sold 2 million units in the same amount of time.
I actually need a new iPod now because my wife stole mine. 16GB would be ideal for me (though I wouldn't turn down 32GB for a good price).
I wish they had a 16GB Nano--I'd buy that in a heartbeat. But if they don't and drop the Touch by $100, I think I'll get that.
Honestly, I'd much rather get an iPhone, but I can't do the 2-year service agreement because I'm leaving the country next year.
Just jailbreak it and don't sign a two-year contract. That way Apple doesn't get a cut of the contract from AT&T.
This thread is hilarious. Manufacturers drop prices all the time. And everyone loves to 2nd guess Apple.
I mean, analysts are saying the unlocking hurts Apple. How? They still get cash for your iPhone...and it shows carriers that yes, there is demand. They may not get the revenue chunk, but that's really just gravy.
According to reports are 400k unlocked phones in China. The telco there may sell 10 times that number if it was a legit product. That's a win-win for everyone.
Price cuts? That'd be great. The more people that have iPhones, the more viable the platform is down the road.
If you don't want to deal with price drops, don't buy anything in technology. It's been that way for the last two decades at least. That 10MB Corvus hard drive was $2695 back in the day.
They get a big cut of the contract.
I have a Zen Vision:M and love it, but I want the extensibility and hackingness and the browser of the Touch. If they drop it to $200.. I might have to give in.
I expect to see a 32 gig 3G iPhone in June. 1 year after the first iPhone launch.
If they did that (at 399) I might actually say "screw android" and get that. It all depends though. I really hope that apple and the new sdk introduce some of the major features that the iphone is stupidly missing.
There might not be enough room in the iPhone to stick in 32 GB of flash memory unless they fatten the iPhone a bit. That's why there's only a 16 GB iPhone right now. Hopefully the next 3G model will have a number of communication and camera components on one chip and that might save some space. Apple is really pushing the limits of function and small size already.
Althought it's being called a "price cut", that's what Apple always does, incremental upgrades but keeping the price points the same. I wouldn't be surprised if there was some kind of product/pricing shakedown in the near future. Their recent pricing strategy seems confusing. I'm not worried about the iPhone; like the mature nano and classic there are 2 prices, very clear what the value proposition is to customers. But for the touch, 3 choices topping out at $500? I would be very surprised if that premium high-end is anything more than an experiment or stop-gap. What's tricky about the touch too is that I don't think Apple has quite found the clear "story" for the device to consumers. The combination/trade-offs of music/movie/interface/low memory/high price/internet isn't coherent yet, as compared to Nano (small size), Classic (tons of music), iPhone (phone, apps, and internet all in one). Then there's the strange middle touch middle child (which we had to pay money for software upgrades that should have been in a free updater?). Don't get me wrong, I'm totally into the touch and am waiting to buy one, but Apple seems confused about how to sell it. We shall see in a few weeks if the rumors are true!
I've noticed this also. I know only a single person who has bought a touch. Everyone wants one, but nobody seems to feel like it's worth the price of entry - if given the choice they'd buy a Nano or a Classic instead.
It certainly is compelling in feature set, but unfortunately there's no place for it to go. It cannot fully replace the Classic in its price point due to low capacity, but it has trouble surviving in its own space.
There is no damn 3G iPhone.
I'm soooo close to buying a 32GB iTouch but all of these rumors of a $100 price drop are holding me back. I'll either wait for the price drop or get whatever new model is released in September. which ever comes first.
K thanks bye!
Wow, you responded to my comment with a lame insult(?) a whole 20 hours after anypone else commented here. Seriously?
well, i'm glad i got my iphone used 2 weeks ago. craigslist FTW
For sure, I picked up my iPhone New in box for $250 off craigslist. I'm not too upset over the issue, and plan to get iPhone v2 when it comes out assuming that it has 3G, 16+GB, and (hopefully) GPS
Yes, you do need the entire Flaming Lips back catalog.
If this actually happens, I will be LMAO, because I joked about this on the 16gb iPhone announcement page (from TUAW). Of course I said two months.....
Quote from my post:
"Feb 5th 2008 9:40AM - Joking (but with a hint of truth): AHHH Wait two months, and it will be $399 :)"
AT&T paid my $175 Verizon fee so that I would switch
and kate hudson paid me $175 to sleep with her
@ phanbouy
Why is that so hard to believe? AT&T did it for me too. A lot of wireless carriers will do it if you ask them because they'll make a lot of money off you in the long run. What's $175 to them if you're paying $80 a month for 2 years?
what will happen to the 8gb iphone? $299? that would be awesome!
engadget-webform:~ phaseon$ exec buyersremorse
[Process completed]
Wow I would be somewhat jealous if they have the 8gig for 200. Just bought the 8gig Zune for 170. I like having a different DAP, but it's hard to pass up NES emulator and what not that comes with jail breaking an iPod Touch. Also it has a web browser that's pretty intuitive, was using it the other day.
Why drop the 8Gb model? I think they should just lower the price for it instead. I would surely get one if it was $199 or even $150.
hmmm.... finally the iPhones will be worth buying!
Because they haven't been worth buying so far? I didn't realize a product *had* to be cheap in order to be worth buying. So I suppose you don't think cars and houses are worth buying either? I mean gosh, they're so expensive.
@ Zak
i was talking about *worth*... as in the *value* the customer gets when he buys a product at a particular price. there's a difference b/w being cheap and the worth of a product. in my opinion the iPhones are good but they are massively overpriced.
oh... you can go ahead buying your phones, houses and whatever at any price without considering their *worth*.
apple i love you
read: don't buy an iphone.... there'll be a better one real soon
I would get one for sure if apple drop it to $199
Plus you have to now throw in the fact that people are going to get a check for $600 the were not expecting. The wife might be more agreeable to the you buying the touch after dinner. BUt if its $500 that does not leave much to spend on said dinner.
Rj
wtf! I just bought my fucking iPhone YESTERDAY!! I'm gonna kick Steve Jobs ass when I see him.
You do know you can return it, right?
Razor thin margins, on an apple product? HAHAHAHAHAHAHAHAHAHA... whoo..
Any apple product could be sold at a 50% discount and still have a profit margin fat enough to make a whale jealous.
I'd be a little mad, since I just bought the 32GB iPod Touch (and was happy to pay that price for it. It's well worth it, despite what the Apple-haters say.)
Price drops happen. I have no problem with paying an "early adopter fee."
However, if they drop the price within 60 days of my purchase, I'll be a little miffed because that's just a little TOO close for comfort. I expect price drops like that to occur AFTER the 90-day mark. Doing it within two months of the product's launch would be pretty rude, unless they want to give me some credit for it like they did with iPhone purchasers.
This is why I wait to buy technology. Especially with Apple... because they change their minds so frequently. I just sit and wait till I see a product with all the features I want (3g is all I'm waiting for) and then a price drop.
But some people aren't as patient as I am. XD
i still don't get all the hype about 3G unless you're all about the tethering.
3G is great for reasons beyond just the speeds. The ability to do voice and data at the same time means that you don't miss calls just because you're browsing the web or your phone is downloading your e-mail. Each 3G cell also has a higher capacity.
"Each 3G cell also has a higher capacity" sorry, but what does that mean?
I have 3G and HSDPA on my phone, and as much as I want an iPhone (assuming there aren't any unpleasant surprises about the SDK and related apps), I won't go there until it has 3G. I tether just a tiny bit, but when I'm tethering it's out of desperation and while high speed is nice, I'm not going to complain about Edge because it's better than nothing.
When I really appreciate the high speed is when I'm on line at Starbucks and want to check my e-mail or a web site in the 30 seconds I have before I move up to the cashier. I also spend a lot of time underground, so a quick update of my RSS feeds while I walk to the train is possible, whereas I'd have to think of it a half hour in advance to do the same on Edge.
I find that I use my data connection a lot of times in quick bursts, and with a small window of opportunity to get to what I want. Using an Edge connection means that I'm still staring at a progress bar when I run out of time, and I haven't accomplished anything.
Can't be true... the shareholders weren't happy about the last drop in price. And that's what's important.
Making the shareholders happy. The consumer comes... somewhere after that.
Who sent this in? *cough*
Zach is right. Apple would sooner eliminate the 8GB iPhone than drop the price further. Apple has always opted to upgrade the hardware to maintain the same price, as opposed to letting the same old hardware get cheaper.
I have ended up using my iPod Touch 8gb more as a PDA .... then a MP3 player. Didn't expect that. I like it a lot.
iTunes is horrible but i don't have a choice. I miss my subscription music.
I think $199 iPod touch wouldn't be profitable, its obvious that the 8gb extra you get with the 16GB does not cost $100.
I think iPod sales fell too
More reasons to believe that a 3G iPhone is in the pipeline.
The iPod Touch is the future of iPod IMO so I doubt they'd be shaving margins there but you never know what Steve has up his sleeve ....
Folks need to stop treating this like a cell phone and more like an Apple product when it comes to purchasing. If you didn't pick it up after MacWorld, I would advise waiting until WWDC. Your pro/con list may vary for timing but I know I'll be waiting until WWDC before deciding to switch carriers and drop those bills.
Welcome to Economics 101. I guess the majority of you brain dead idiots didn't pay attention in class? well go look the economics of manufacturing and production!
i dont get the whole hype over 3G? I owned a 3G Blackberry and I rarely got a 3G signal. The only time I got a signal was when I went to LA or NYC, other than that NJ very little signal. So I worked on EDGE and no complaints. If AT&T was to upgrade the 3G service to be more wide spread than it is now then I would think about upgrading my iphone. Being a first adopter of the iphone Apple screwed me over royal by first dropping the price of the 8GB iphone and then coming out with a 16GB iphone at the 8GB price and then as soon as they come out with a 3G 16GB iphone they will have a 32GB 3G iphone 1 week later! Then I will laugh at you suckers who put out the xtra ca$h for 3G..... LMAO
xbit
@ Feb 18th 2008 4:17PM
3G doesnt necessarily mean you can do data and voice at the same time. Leading 3G carriers, CDMA in this case, such as Verizon and Sprint currently use EV-DO (Data Only). Which prioritizes voice over data. You cant do both right now. THe next will will be EV-DV (Data and Voice)
Can the current GSM 3G do both data and voice at the same time?
Yes, simultaneous voice and data is one of the advantages UMTS/HSDPA has over EV-DO.
It's also one of the very very few (maybe even only?) things I miss since switching from a Palm Treo 750 to an iPhone. (Interestingly I don't miss the faster speed as Safari is a LOT more usable on Edge than Windows Mobile Explorer is on UMTS.) As happy as I am with the current iPhone, when the 3G version comes out, I'll be switching as the faster speed and simultaneous data/voice is worth the $(new iPhone) - $(Ebay value of old iPhone).