Steve Jobs Speaks the Truth About the iPhone Price Drop

As my blogmate barbi mentioned about the iphone price slashed by 200$ . Apple lowered the price of the iPhone because it wants to make lots more money by selling them in deluge this Christmas.

In his own words (Steve Jobs), “we have the chance to ‘go for it’ this holiday season.”

Whatever share Apple has of the people willing to spend $600 for a phone, the market of people willing to spend $400 is far bigger, and frankly the market for people willing to spend $200 is far, far bigger than that.The thought on why the price drop doesn’t mean sales have been slow. The central rule of technology is that the unit price drops sharply with volume. If Apple sold more than it hoped, then it would achieve scale faster and would be able to drop prices sooner.The actual cost of ipod 8 gb is $226.61 and that of 4 gb is $ 24 less than the former.

I hope the sale will drastically increase the sales of ipod :-) since there are many ipod lovers out there including me :) .