http://www.digitaljournal.com/article/224386

Apple cuts 8GB iPhone price to $399

Posted Sep 5, 2007 by  Chris V. Thangham
Today Apple released newer version of iPods and one iPhone type device without phone called iPod Touch. Sensing competition from iPod Touch, Apple decides to cut the prices for iPhone to $399.
New price for iPhone is $399
Apple introduced next generation of iPods; Chris will be adding an in-depth article soon. The iPod Touch has most of the features of an iPhone but without the main phone service and sells for $299. Since many might choose this, Apple decided to reduce the prices for the iPhones. Apple announced it today that they are cutting the prices of iPhones, 8GB models from $599 to $399, which is very significant and good news; there will be more sales because of it. Now many who couldn’t afford before like me could buy this.
New iPod Touch
However, Apple has not said anything about the iPhone 4GB models in their main page, but I found this link where they are available for $299 which is a great price also. They may not be around for a long time, they may be discontinued in the future because of poor sales compared to 8GB models. But with the lower prices, Apple can sell both models.
Now iPhone looks very attractive in both price and quality wise.