I held back on posting this for fear of looking like an idiot. I go through phases of caring. Right now I don't, but if I was wrong who knows if i'd post this. In this case, I wasn't wrong. This was written a few days before the iPhone 3GS was announced.
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Surely you're looking at this all wrong.
Because a standards board approves 4GB iPhones and 32GB iPhones you draw the conclusion that it's a low end $100 model. There's a shitload of stuff in that little box that contributes to the overall price. 4GB of memory is not going to chop a hundred from production.
Wouldn't a sensible model to do this loss leading thing (aside, chances are in real terms it wouldn't actually be a loss leader, but that's generally the concept of a price cut of this size) offering a cheap 8GB model, a standard 16GB model and a high end 32GB model? Why for the sake of very little money talk poorer people into buying a piece of hardware that will run out of space for music and apps?
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