Along with its announcements about the latest line of iPods, Apple yesterday also slashed prices on the iPhone. The 8 GB handset will now cost $399, down from $599 on its initial release, only two months ago. Apple also announced plans to phase out the 4 GB model.
Apple has said that anyone who purchased an iPhone within the past 14 days can get a refund on at least the difference in prices.
Many iPhone early adopters were upset with the news of so soon a drop in price. As well as Apple's release of the new iPod Touch, an iPod with a touch screen just like the phone's, as well as wireless connections and a Web browser. The new iPod Touch will allow users to download music to the iPod directly, without having to first download music to a computer and sync the device.
In an interview with USA Today, Apple CEO Steve Jobs said, "If anybody is going to cannibalize us, I want it to be us. I don't want it to be a competitor."
Apple and Starbucks also announced a deal that will allow people to access the iTunes store at Starbucks locations without paying for Wi-Fi connection fees. The service will debut at more than 600 Starbucks in New York and Seattle starting October 2, and will come to other major cities throughout the year and into 2008.
Terms of the partnership were not disclosed.