Apple's decision to lower the price of existing iPhones has been widely praised by analysts.
The company announced the decision to offer its existing 8GB iPhone for $99 (£61) at its annual World Wide Developers Conference today, and to offer higher-end iPhones at the old price points.
"This is pretty much in line with what we were expecting," said Gartner research director Carolina Milanesi.
"It is right thinking to keep the current products to widen the market, and offer a new price point and memory option. The market is more challenging now, so price adjustments will be very welcome."
The move will probably attract new users to the iPhone platform, and will not come as welcome news to Palm, which launched its 8GB Pre handset yesterday.
"It's probably enough for many existing owners of the 2G iPhone to upgrade. Most of the 3G owners still have another 12 months contract to run anyway," said Dean Bubley, an independent technology industry analyst with Disruptive Analysis.
"Also, it looks like it's been priced to compete against some specific rivals, notably the Palm Pre, and extend market reach, rather than be the ultimate heavyweight ultra-spec super-phone.
"Probably makes a lot of commercial sense, as I suspect Apple would rather have 50 million normal midrange users than 20 million ubergeeks. Given the economy, they probably made some pragmatic decisions about designing it down to a price, rather than going the Nokia route and putting in everything but the kitchen sink."
New handset and updated OS X Snow Leopard and Safari highlight opening keynote 08 Jun 2009
Provider reports strong demand for new handset 09 Jun 2009
Apple chief planning high-profile return to the company 05 Jun 2009
Study suggests that the Pre wins on cost, for the moment 05 Jun 2009
Enhanced word processor and spreadsheet tools for Apple's smartphone 03 Jun 2009
Gartner claims decline is due to slump in replacement sales in both mature and emerging markets 12 Aug 2009
New device extends phone maker's portfolio into PC market 24 Aug 2009Provider reports strong demand for new handset 09 Jun 2009
Best numbers ever as Apple storms ahead 26 Jan 2010New handset and updated OS X Snow Leopard and Safari highlight opening keynote 08 Jun 2009
E.ON and ScottishPower receive funding to help complete design and development studies 12 Mar 2010
But the Commission remains confident bloc will exceed target to generate a fifth of energy from renewables by 2020 12 Mar 2010
Industry urges legislators to move bill to the president's desk as quickly as possible 12 Mar 2010
More news
From hydropower hot spots to record-breaking Texan winds, we run down the top stories from the past week 12 Mar 2010
Few debates cast the UK's business and political community in such an unedifying light as the never-ending row over skills.... 12 Mar 2010
Christian Kjaer, chief executive of the European Wind Energy Association, argues that a supergrid is essential to EU efforts to cut carbon emissions 11 Mar 2010 More in-depth
Post your comment
Send an email to the Business Green editor at feedback@businessgreen.com
