Summary
Drastic iPhone price reductions and iPod refresh good long term moves; the gauntlet has been thrown down for other cellphone manufacturers
Analysis
The trouble with many companies is they believe their own hype. Kudos to Apple and Steve Jobs for keeping a close measure on IPhone sales and acceptance. Clearly it did not meet Apple's internal plans and they have decided the issue is price and reacted accordingly, decisively and quickly.
What is interesting is that even at the higher price Iphone outsold all other smart phones in July. (http://seekingalpha.com/article/46337-iphone-sales-dominate-smart-phone-market)
So this spells trouble for the other cellphone manufacturers in the near term. Apple will have a slight hit in projected revenues in the near term. Over the long term the Iphone and its descendants will become a major force in the marketplace.
