Dreaming of iPhone? Wake up now!

Apple has made another surprising and may I say confusing move as it slashes the price of iPhone 8GB model by $200. Starting today, mobile users can buy this ultra-hyped phone from $599 to $399.

However, we have to say goodbye to the 4GB model as it will be quickly phased out. At this time, only the remaining stocks are up for grabs.

The whole time the public is raving about this wonderful news, many investors and market analysts are having some problems figuring out the strategic sense of this unforeseen move. There is the marketing icon, Steve Jobs, boasting about their ability to reduce production costs in time for the holidays!




Moreover, there are analysts supporting the strategy as a way to become a legitimate player in the mobile phone category.

Still, the general impression of the financial market is WEAKNESS, sending the company's shares down by 5.1%. It may be an early sign that Apple is falling behind its commitment of selling 10 million iPhones at the end of next year to get 1% share of the global market.

I see this is as an aggressive pre-emptive strike against iPhone-based smartphones that will be launched by other mobile players. By creating a barrier to entry through price reduction, it can easily spoil the strategies of competitors. Then again, there is something really alarming with the timing of implementation...

Via Mobile Whack