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Is the iPhone a Bargain?

So here comes another news from Apple. In their usual style, Apple announced a complete upgrade of ipod line of products. New nano, ipod touch, Starbucks iTunes partnership and what's more newsworthy is a deep price cut on iphone. Last time I wrote about iphone, I had predicted a deep price cut but only along side the announcement of a next generation iphone with 3G support, more attractive service plans etc. Current price cut from $599 to $399 within 3 months of launch and without the introduction of a better (and more expensive) iphone is very surprising. It makes consumers feel cheated and early adopters feel stupid. Everyone else will have the same iphone and these loyal early adopters won't have something superior to own and stay ahead.
Makes me wonder if there is something deeper at play here. May be a new iphone upgrade won't happen anytime soon (within 6 months) for whatever technological, business or logistical reason. May be Apple will focus on launching the current generationiphone worldwide instead. And may be Apple will have to rely onthe current generation iphone to hit the 1% global marketshare goal (10M iphones) in 2008. Yes, to be successful in Asia, Apple will have to introduce a cheaper version of iphone and may be this is the only option they have got.
And for those of you hunting for a bragain, $399 is a good price for iphone but Retrevo deals channel tells me thatyou can own a 8 GB refurbishediphone for $349. Now that's a bargain!


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