Finally, Apple has cut off its iPhone. Apple also came out with their new lineup of iPhone players that expected to ring in healthy holiday sales. However, Wall Street investors accustomed to Apple’s meaty profit margins appear a bit disappointed.

Apple’s stock has dropped more than 5% after the announcement of price cut on Wednesday, closing at US$ 136.76, which was down US$ 7.40 cents. The price cut from US$ 599 to US$ 399 for the 8GB iPhone. This movement has immediately set off a debate on online tech forums between early adopters that paying premium price came with the territory and those who said they felt burned. Some complained that the price reduction was too much and too soon.

This might be a surprise for iPhone fans coverage all over the United States. However, gadget enthusiasts who bought up iPhone before Wednesday would be disappointed to hear this announcement, because the price of iPhone is US$ 200 cheaper just within 10 weeks of its introduction.

Many market researchers analyze that this moment is the worst timing ever for price cut. However, according to Natalie Kerris, Apple’s spokesperson, anyone who purchased an iPhone within the pas 14 days and has the receipt can able to get a full refund under Apple’s return policy if they have not opened the product. However, if they have opened the device, they still can get a refund for difference price.

Apple’s iPhone 8GB is the device that has positioned to take over the place of Apple’s iPhone 4GB, which sold for US$ 499. This movement has not being predicted by many peoples, suppose that Apple always keeps prices steady while it is offering new features. In normal condition, Apple only gives discounts to its products when the products are getting older.

According to Jeff Kagan, an independent telecommunications industry analyst based in Atlanta, Apple is learning on how to become a cell phone retailer, in the cell phone business all just suddenly happened and everyone is trying to figure it out how to measure it. In contrast, Jobs, Apple CEO, seems very sure that Apple has already being the major at mobile phone area; he said that the company is on the way to sell 1 million iPhone by the end of September just for the United States cell phone market.

Apple has put itself in confident because in 2006, its sold up a record 21-million iPod players just during the holiday quarter, this number is 50% more than in the same period of the year before. Nowadays, Apple sold more than 110 million iPod since they entered the market in 2001.

New iPods Updates

On the same day, Wednesday, Apple also announced the newest iPod media players, which is include a model called iPod Touch that incorporates the iPhone’s touch-screen and it is also adds the ability to wirelessly download songs directly from the new iTunes Wi-Fi Store. Another device is iPod Nano, which is plays video in a large capacity about 160GB.

In the term of partnership, Apple and Starbucks have assigned the memorandum of understanding. Starting in October, Starbucks will light up on the Touch whenever a user nears a shop that has Wi-Fi access. The customers can download the song that is playing in that Starbucks shop or getting a list of the 10 most recent songs played.