Apple dumps 4GB iPhone, slashes cost of 8GB model to $399

$200 price cut for premium iPhone model

5 September 2007 19:27 GMT / By Amy-Mae Elliott

As part of the wider "Beat goes on" event that saw the launch of ringtones for the iPhone, new iPod nanos and the new iPod classic and touch, Steve Jobs did have "one more thing" other than that which blogs and speculators had predicted he would announce.

It seems that Jobs did have a surprise for us after all - one that wasn't predicted or leaked. Due to low levels of sales, the company is dropping the 4GB version of Apple's iPhone.

In addition, the 8GB version is getting a price cut. Steve Jobs stated that customer satisfaction numbers with the iPhone are "off the charts" but that they want to make the iPhone "even more affordable" for more people.

This means a $200 price cut for the 8GB iPhone reducing the price to $399. It's a move than will no doubt prove very unpopular with early adopters who splashed out the $599 for the device and could be seen as a weakness on the part of Apple to be slashing the price so soon, after just 2 months of the range being available.

Recent reports suggested that the iPhone was the top-selling smartphone in the US in July - although as the device only launched on 29th June it's not that surprising. Perhaps now that the hype has died down the phone isn't selling as well as was thought?

Not according to Jobs - he clearly stated the price cut was down to them choosing to get "more aggressive" with the market and announced that Apple are on track to ship their one millionth iPhone this month.

Only time will tell what price point Apple decide to offer the 8GB iPhone version at in the UK, we would certainly hope that we see the benefit of the price cut - although it's almost certain that it won't be a direct £200 conversion from the new $399 price tag.