The price drop was due to finally getting the phone subsidized by major networks. If you bought it unlocked (or if you still do) it was the same price. It suck

The price drop was due to finally getting the phone subsidized by major networks. If you bought it unlocked (or if you still do) it was the same price. It sucked a little for Early Adopters (like me) but it was completely predictable and wasn't honestly a huge surprise to anyone paying attention. By the time the price drop happened they had sold over 25% of the smartphones that were bought in the previous quarter. They'd already met their goal of 1 million smartphones by the end of September at that point. I swear... the rubbish I see over this: the iPhone was a wild success considering that Apple had zero involvement in that business before. It was the kind of success that many companies dream about for new hardware.