Because Steve Jobs just cut the price 33% to $399.
And there's always the matter of that pesky battery replacement issue:
Apple revealed the details behind its iPhone battery replacement program this week. It's basically the same deal as with the iPod, in that you have to return the unit to Apple for battery replacement, but it's a little more expensive. The service costs $79 plus $6.95 for shipping to replace the battery on an out-of-warranty iPhone, and Apple says it will take three business days.
How convenient.
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