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Today, just two months after its introduction, Apple announced that they were dropping the price of the 8GB iPhone from $600 to $400. This news has set off a firestorm of anger among early adopters, many of whom are Apple’s biggest fans and supporters. I have to admit, I felt the sting myself. I still love my iPhone, and think it’s worth every penny of the $600 I spent, but who wouldn’t want to have bought it for $400 instead?

Anyway, in the grand scheme of things, $200 isn’t such a big price drop as it seems. AT&T’s cheapest monthly plan is $70 (after fees and taxes). And then there’s the $35 activation fee. So the total cost of ownership over the 2 year contract is now $2,115 (down from $2,315).

Don’t think of today’s announcement as a 33% price drop. It’s really only a 9% price drop.

Feel better?

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