A 33% price cut after two months suggests that demand isn't meeting supply. iSuppli have shown that the iPhone took 1.8% of the US market, not the global market which is far bigger in July. Given the hype 1.8% isn't actually that good.

The Q3 and Q4 figures will tell the real story and I think Apple know that, hence the cut.

Mark Anderson, Edinburgh,

need to reimburse the loyal customers who paid the begining full price!

Leslie, ,

I think this is a direct response to the main threat the iPhone faces in it's target demographic, that of Nokia's N95 8GB version - it is the main alternative that people would consider, and is about to be released in the States. the N95 is technically far more capable and sophisticated than the iPhone (though the iPhone of course has the considerable Apple "cool" factor, and the wonderful touch screen interface). I suspect the rumours of a better model (and a European model) are also true - for starters the iPhone cannot remain non-3G for very much/any longer.

Alex Kerr, London, UK

I can sympathise with purchasers of the full price version, and I hope they get their apology. While we're about it, I buy around 4 new release CDs every week, usually at full price, and I often see those same CDs at mid price a little later - I wonder if I'm due an apology from EMI, Virgin, etc.?. Also I note that PCs are dropping in price for the same spec that existed a year ago - apologies due here?
I suggest the Apple buyers get a life; perhaps one without the grindingly dull inventory of WAP phones, satellite telly, designer plimmies, internet chat rooms,... I could go on but even wrting the list is boring me. Why not take a breath, step outside, and do some real things in the company of real people!

john miller, Nottingham, UK

Your kiddin me right? You guys must have a grudge against Apple because last time I checked the iPhone broke the estimates I read about

Sean, Tennessee, USA

need to reimburse the loyal customers who paid the begining full price!

Leslie, silver spring , Md

They should have just sold the iphone as a stand alone phone, that could be used on any network.

Not only are you paying for the Iphone, you are also paying to sign up to a contract!

Olu Falola, London, England

When will people realise that apple products are just gadgets....the same as a million others out there. Technology progresses, prices fall, competition increases........ Did these people also complain when Sony dropped prices on its original walkman? (the one with tape!) iPod et al will all be thrown in the bin in 10 years time......

Andy, Doncaster,

I think Apple shot themselves in foot from the word go. Lots of hype,great product but wrong strategy. Why would you lock the phone to AT & T? *Lets see,great for Apple & AT & T but bad for the consumer.iPeople were cancelling their existing phone contracts to get this phone at absolute premium price. The curse of the early adopter. Secondly,price cuts are inevitable.Look at the XBox pricing strategy.Apple is merely attempting to accelerate sales before this turns into a monumental failure. My advice lets all sit tight for another 3-6 months and who knows how low they will go.

Mo, London,

It is standard industry procedure - charge premium rates for latest consumer gadgets / technology before the novelty wears thin and flaws shart to show. Am I the only one not impressed with the "loyal fans who shelled out full price"???

Osei K., London,

Besides the Beatles, what else could they have announced?

Apple are boxing clever, for all their disappointment with iPhone's early impact. Initially, its detractors were saying (mainly) that the phone was too pricey, and lacked 3G, and its supporters were arguing that they'd pay even more if it allowed them to have such a superb device.

Now it's detractors are citing price cuts as evidence that the product will fail, when it could very well allow it to flourish (as they predicted a lower price would). Its supporters are griping that they've been stung $200 for nothing, but they were the ones willing to pay over the odds to get the 'Jesus phone' early.

If Apple is making room in its lineup for a 3G iPhone for Europe, they're safer than their share price wobbles imply. If you bear in mind that Apple's briskest sales are always before Xmas, they are now very well placed. They're approaching the 'holiday season' with 4 new iPod ranges & the iPhone, besides the refreshed iMac.

John Allen, Oxford, UK