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Apple slashes iPhone price by a third

8GB model now just US $399

At a special media event held at San Francisco's Moscone Center, Apple CEO Steve Jobs announced that Apple is reducing the price of its iPhone from US$599 to $399.

"We want to make iPhone even more affordable for even more people this holiday season and so we're going to do something about that today. We're on track to ship our millionth iPhone by the end of this month, and so to get ready for the holiday season, here's what we're going to do: The vast majority of customers want the 8GB iPhone. So today, we're going to focus on just the 8GB model."

"The 8GB isn't going to sell for $599, it's going to sell starting today for $399. We want to put iPhones in a lot of stockings this holiday season," said Jobs.

More news from the special Apple event here.


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