Apple surprised some people yesterday by slashing the price on its iPhone by $200. The 8 gig model will now sell for $399, making it far more attractive to a wider group of mobile users. Steve Jobs also said Apple will stop selling the 4 gig model, as most consumers are opting for the device with more storage capacity.
new iPod Touch
In other Apple news, the iPod is looking more like the iPhone with a new touch screen. It also comes with Wi-Fi so users can connect to a new iTunes Wi-Fi store to download songs directly to their music players without having to connect to a computer.
In tandem with the new product, Apple said it agreed with Starbucks Corp. to let users buy music from the iTunes Store on free wireless connections in Starbucks cafes. Users won’t have to pay a wireless connection fee to shop in the iTunes store, which they currently must do when accessing iTunes from a Starbucks. The deal also applies to Mac, iPhone and personal-computer users.
Starbucks plans to begin the service in October at 600 cafes in New York and Seattle, adding service gradually in other locations throughout next year. Starbucks Chairman Howard Schultz said, “The big payoff is the sense of discovery that will exist.”
[via The New York Times and The Wall Street Journal (paid sub. req.)]
