Wednesday, September 05, 2007

Apple Cuts iPhone Price and Revamps iPods

Apple announced a price cut for its iPhone today, along with a new iPod that looks like the iPhone and a version of its iTunes store that downloads music directly to the player rather than a computer.


Steven P. Jobs, the chief executive, called the moves a “total refresh” of the iPod line, and they signify a move to turning the music player into a hand-held computer.


The company dropped the price of its 8-gigabyte iPhone by $200, to $399. The company did not give a reason for the price cut, which analysts said has been selling very well.


Investors appeared to interpret the announcement negatively. Apple’s stock closed off more than 5 percent, at $136.76, and most of the loss came during and after Mr. Jobs’s presentation.



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