So with the 8GB iPhone’s price drop, came the axe for the 4GB version. Now I know a lot of you are angered with the fact that this short time after the iPhone’s release they drop the price by $200, and I have no answer nor explanation for that, I have some ideas of the few upsides it might have, but that is all.
So, why is the 4GB iPhone gone? Probably because when you are already paying $500 for a 4GB iPhone, the extra Benjamin for double the capacity doesn’t really seem like much. So basically, I have my doubts as to how many of them actually sold.
Then there is the fact that the flash drives for the iPhones was probably one of the cheaper components, and if they had applied the $200 price cut to the 4GB it would have been a $300 iPhone which means Apple would probably be losing money. Apple is all about making money, so there is reason number two for the 4GB getting the axe.
Now, for the $200 price cut such a short time after the iPhone’s release, as I said, I have neither answers nor explanations for why, but I do think some good will come of it. First, let’s look at accessories; you now have the iPhone as well as the iPod Touch which will likely share the same set of accessories. That means that the accessory market for those devices will grow exponentially, especially when that $200 price cut will allow Apple to stay king of the hill for smartphone sales. The cost for those accessories will also be driven down by the high number of people competing for your business.
Lastly, there is the modding community, cracking open, and potentially frying a $600 iPhone is about $200 less depressing now which means there will be more developments on that front. More users also increase the amount of Apple supported software coming out for the device, so that will be another bonus. I really can’t understand why they did something like that to the early adopters, what I can say is that I am for sure more motivated to go get one.