iPhone Unlocked

Apple cut the price of the iPhone by $200 as part of a major announcement of new iPods, a mobile version of iTMS, and a coming iPhone software update. The 8gb iphone is now $399, and the slow selling iPhone is $299 while supplies last.

This is clearly a move to broaden the market for the iPhone, but it also suggests that they are making room for a new iPhone at the $499 price point. The obvious candidate is a 16gb model at $499, especially since they are offering the new iPod Touch in that capacity. I would expect it to be announced a little after the iPhone software update is released later this month for yet another little PR boost.

I’m also guessing that the update will have more to it than support for th mobile iTMS.