Price isn't right on iPhone

Published: September 5, 2007, 3:45 pm

Filed under: Apple Inc (AAPL), AT and T (T)Yet again, Apple (NASDAQ: AAPL) demonstrated more hip and cool gadgets today (i.e. new iPods). Then again, is there really anything special about that? In a way, Apple is expected to do this kind of stuff.But, among the fanfare, there was some awful news - that is, Apple dropped the price on its more expensive iPhone, from $599 to $399. Isn't Apple the epitome of premium pricing? Isn't their brand impervious to such things?True, it should help volume (or, perhaps prevent a drop in volume). But of course, there is likely to be a hit against margins. I had a chance to talk to Allan Keiter, who is an expert on mobile devices and operates MyRatePlan.com. According to him:"The moves by Apple today offer a mixed message on the current and future success of the relationship with AT&T (NYSE: T). From the wireless company's perspective, a lower price for the iPhone will broaden the audience for the device, and was probably necessary in a U.S.

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