Price cut reason #1 - Apple is now competing in wireless services industry

This happens all the time. Price cuts on new Motorola Qs, Blackberrys, Palms. Sometimes a couple of weeks after launch, major cell phone manufacturers cut prices. With iPhone, Apple found itself in unchartered waters. Remember, there is another company involved here. If this is was just about it being an Apple product, you would have never seen a price drop this quickly. But, with iPhone there is a lot more riding on its success. If anything, partnership with AT&T was probably a major consideration.

Thumbs up to Steve Jobs for doing something no other major phone manufacturer has done before. Tell me if Motorola, RIM or Palm would ever give their customers $100 credit. Never. And their prices (with or w/o contracts) drop all the time. If this was about a "pure" Apple product price drop, no question there should be an uprising. But, iPhone is not just about Apple.

I bought two iPhones on Day 1. I went to an Apple store a day after a price drop and hours before an announcement about $100 rebate. Manager gave me a $400 store credit ($200/phone). No questions asked. Great service.