iPhone price too high?

A recent study shows that the iPhone's price point might drive away potential customers. Macworld writes about a survey by Compete, which tells us more or less what we already know: if they gave away free iPhones in boxes of Lucky Charms, we'd be all magically delicious over those things like white on rice or green on clovers or yellow on moons or pink on hearts, but at $500 we're all "would you take $200-$299 instead? Please?"

Analysts in the Macworld article suggest that early adopters might pay a premium before the price drops for the mass market. In related news, David recently posted about a possible contract-contingent price break.