A timely reality check
Another breakthrough Apple product, the original Macintosh, initially sold briskly in 1984 and then stalled abruptly. The Macintosh market did not regain its luster until 1986 with the introduction of the Macintosh II. Apple’s market share among computer makers remains small, in part because of the premium price it places on its Macs. (Apple’s market share in music players has not suffered a similar fate, however.)
On Wednesday, Apple executives insisted that the price cut had been planned long ago and that the strategy had been conceived in part to keep the iPhone’s pricing in line with its new iPod Touch, a music player that looks like the iPhone but lacks the phone-calling ability. The sharp price cut, however, suggested that even Apple, which has long lived in a pricing bubble insulated from other personal computer makers, is not immune from the brutal pressures of the cellular phone business.
p.s. yeah, I'd like to have an iPod Touch...