The price reduction of the iphone took us by sorprise, Apple has never made a slash this big (US$200) even when replacing models due to an update. This reduction could be a response to 2 differents situation: 1) the 4GB was not doing good enough to keep it in the line up; 2) Maybe Apple wants to accelerate the adoption and achieve at the same time the 5 million units proyected 10 millions for this 2008, this is a win-win situation for everybody, we get cheaper iphone and Apple sells a truckload of them.

Situation 1 is the more realistic here, 4 gigabytes is a very small space and nobody wants to carry two or three songs, but the 8GB spot is not replace, so should be a 16GB version in the pipeline.

The only thing missing for revision 2 is a decent 5 MP camera, not that we want a camera with phone functions, but a good one to take advantage of iphone and do not carry 2 devices.

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whataboutmac.com