You knew it was going to happen, you just didn't know it would happen this fast. Apple has lowered the price on the ridiculously overpriced 8GB iPhone from $599 to $399. It also dropped the once-lowerpriced 4GB model. At $399, that makes the iPhone somewhat more appealing; the price is closer in line to that of competing smartphones.
And what if you already purchased an iPhone for $599? Tough luck, chump. Apple will give you a $100 credit for the Apple Store, but past that you just paid $200 to be an early adopter.
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