Ouch, I have the feeling this is going to really wind up the commentors. Rumors are circulating that Apple plan on lowering the price of iPhone and iPod Touch models by $100 at some point in the near future – it varies between “by the end of February” and “by mid-April” – while simultaneously hitting delete on the 8GB versions of both devices. The move would put a 16GB iPhone at $399 while a 16GB and 32GB iPod Touch would be $299 and $399 respectively.

Forbes is suggesting that prospective iPhone buyers hold off until the much-speculated 3G iPhone, about which the consensus appears to be that it will launch in then next three months. That might seem like a long time if you have cash burning a hole in your pocket, but it’s nothing compared to the tedium of getting locked into a two-year contract with a far slower device.
9 to 5 Mac peg the suspected price reduction on the dramatic fall in flash memory prices, although they do caution that remaining stock levels are likely to measure Apple’s hand in announcing any change in model line-up.







“That might seem like a long time if you have cash burning a hole in your pocket, but it’s nothing compared to the tedium of getting locked into a two-year contract with a far slower device.”
Although the next iphone will be 3G, it is foolish to make comments like this as if the 3G network were prominent in every market. The reality is that a good majority of people that would buy the next generation iphone, the won’t primarily be buying it for its 3G capabilities, since it just simply isn’t implemented in enough areas yet. So contrary to your statement, people that might live in rural areas might actually to prefer the current generation iphone rather than waiting.
that is ridiculous, shay. you sound like an apple media rep. if you were forced to choose between a broadband connection (at home) and a dial-up connection, do you think you would be content with a painfully slow dial-up connection? i currently enjoy an at&t 3g connection with my htc phone. i can’t imagine going back to edge speeds. you can stick with edge. i will be happy to wait for a 3g iphone. i believe in not compromising. since this is a free country, you can go ahead and stick with your dial-up connection. more power to you.
Interesting point, Shay, and I suppose I do write from a European perspective where 3G networks are far more prevalent. However, just because people live in rural areas, will they still want the “old gen” iPhone or, in case they travel to areas where 3G is available, will they prefer the handset capable of faster connections? Two years is a long time in which networks can further roll out their 3G capacity; if I was buying a new phone now, I’d want it to be 7.2Mbps HSDPA compatible even though UK coverage at that speed is still relatively low, based on the knowledge that it’s being expanded all the time.
I guess a lot will depend on whether Apple continues to sell the EDGE iPhone alongside the 3G version; if the price was significantly lower, and you knew you’d never want the extra speed capability, maybe you’d go for the original. But cutting handset prices as Apple are rumored to be doing does sound a little like stock clearing, which makes me suspect a new version (with who knows what other improvements – a better camera, perhaps?) will replace not supplement the current range.