New iPhone/iTouch, No Price Drops
Apple released new iPhone and iPod touch models yesterday, the only difference with the previous models is an increase in the amount of space the devices have to store your content. I looked around the web for reactions and notice that some people were expecting a price drop or prices to remain the same after the upgrade.
Let me explain myself, the concept is instead of having a 8GB iPhone for $399 and a 16GB for $499, drop the price of the 8GB to let say $299 and price the new 16GB at $399. Up until sometime ago, this is what it was happening with devices like the now called iPod classic.
However, things are now different, Apple is taking a different approach to their way of doing business. We can start mentioning things like changing people for an upgrade on the iPod touch and enabling wireless “N” on certain computer. I don’t know if I’m convinced with the excuse of Sarbanes-Oxley that everyone seems to accept, but let’s leave that for later.
Here is my conspiracy theory about the lack of price drops on these new releases, clearing up inventory. Not that the iPhone and the iPod touch are not selling, is just that they are not selling as well as they though, and this is hurting them. Too much inventory of the same devices means that they would need to make sure they clear out whatever old inventory before doing a price drop or risking losing a lot of money.
As soon as Apple clear their inventory a bit they will surely drop prices or come back to the old price line they had before this last Tuesday. This is true because anybody following the news know that flash memory prices are dropping fast. Time wise, I think this change will take place within the next three months, or maybe by the time they announce either a 3G iPhone or the back-to-school sale starts.
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