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No one asked for a more expensive iPhone!

Apple unveils new £329 16GB mobile

Can you believe it? Apple has released a new iPhone, and it costs more than the first one! Ok, it has twice the disk capacity at 16GB, but it costs £329 while the existing 8GB model stays priced at £269.

I very much doubt that this will open the floodgates for new iPhone customers. An 80GB iPhone might have prompted a rush to the tills, but an extra 8GB is hardly going to lead to queues outside the Apple Store.

There are, however, many, many potential customers who would switch to iPhone if the price went down - and not up. A £199 iPhone at 8GB is seriously tempting. A phone costing £329 is not.

If you're after maximum capacity you wouldn't buy an iPhone in the first place, or at least you'd own one and a proper hard-disk-based iPod. Even a 32GB iPhone is expensive at that price.

When did Apple stop thinking different?

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