That's factually untrue. The iPhone launched at $499/$599 for 4gb/8gb models, and then a few months later had the 4gb discontinued and the 8gb dropped to $399,

That's factually untrue. The iPhone launched at $499/$599 for 4gb/8gb models, and then a few months later had the 4gb discontinued and the 8gb dropped to $399, arguably due in no small part to people complaining how expensive it was. [http://en.wikipedia.org/wiki/History_of_the_iPhone#U.S._release http://en.wikipedia.org/wiki/History_of_the_iPhone#U.S._rele...]