Ok, what is the price drop telling us?
Apple overpriced the gadget to meet their sales expectations. Fanboys (and a few others) rushed out to get the latest and greatest. So the initial launched looked to be a success. There are very few complaints with the actual product which proves the functionality lived up to the hype.
Now that the dust has settled, their sales numbers are dropping and they had to adjust to meet quarterly numbers. They do not want to be a failure in the mobile phone market, no matter what. We all know the reality of what the iPhone can do, but to face value, it was twice the price of a "smartphone". I was having a hard time justifying the price, now that it's $100 over market pricing, I have no problem getting one.