The iPhone Didn't Do It for Me

I'm surprised at Apple. Usually when something really groundbreaking comes out, the price of the item I've had my eye on drops into my range. In my case, it's been the 32GB iPod Touch for several months. I was glad to hear about the iPhone 3G, and even happier that the price of that was $199.* Almost two weeks later, the 32GB iPod is still $499. Why?

Is it that the price of the new iPhone is so low that Apple can't reduce the price of the iPod? Are there so many people dropping $500 bills on the biggest Touch that they don't worry about lowering that number?

Or is it just that the iPhone 3G is not that groundbreaking? I have a few reasons that might be the case:

1. Hundreds of thousands of people already have the pokey iPhone, and it's good enough for e-mail, so why change?
2. Solutions were built to make the first iPhone work for their business, so there really is no need to update to a new device that supports MS Exchange natively. It would make the recent infrastructure change a big waste of money.
   
3. They are late adopters, and only six months into the first two-year contract on the old iPhone. They simply can't afford to upgrade to a new device.
4. It wasn't impressive enough the first time to waste money on it again.
5. We're all waiting for Android on Open Handsets.
   

In any case, I'm still not buying the Touch until the price goes down. It will only take time, or the release of a 64GB or 128GB Touch. Fine with me. As soon as it hits $300 for the 32GB, I'm in. But I'm definitely not buying an iPhone.

*Price is $199 with a 2-year contract with AT&T wireless, the very worst wireless carrier in terms of customer service. Good luck if you think the $199 tag is worth it.