[UPDATE 6/10/08] I originally wrote this post based on preliminary information about the iPhone’s new price. Subsequent data made it clear the $199 price is based on a subsidy from AT&T. You can’t buy the iPhone online, but rather must buy it at an AT&T or Apple store and activate it in-house (there is no more at-home activation) in order to get the $199 price.
Therefore, the “true” price of an iPhone is still $499, and the value of the old generation and iPod touch are not impacted as badly as I had first thought.
OK, now that the 3G iPhone is only $199, the resale value of the original 8GB model is now in the toilet. Sure, I could hope to snag some suckers on eBay to pay me a lot, but it’s not my way.
Looks like my old phone will be a hand-me-down in the family.
Meanwhile, I’m surprised the iPod touch did not drop in price today. Still shows $299 for 8GB at the Apple store. Surely it will at least drop to $199?
Speaking of the touch, very interesting to see that the massive 2.0 software update is only $9.95 for touch users. That’s a great deal. Maybe Apple figured the $19.95 for the last update was too much? That update gave five new apps and was impressive ($20 was not that unreasonable) and yet hear the new platform is only $10.