If you’re the head of a company that’s doing as well as Apple there’s something you’ve got to be admired for. It’s the ability to sell a phone with no keyboard and get people to love it. It’s also about selling it for $599 and taking it back down to $399. What appears to be an act of generosity is a great PR stunt. Everyone that got an iphone and saw the price drop was angry so they wrote complaining. Steve jobs then “decided” to take the price down.
The effect of such a move is clear. He’s proved to his shareholders that the market was ready for a device that was $200 higher than it needed to be. Investors have a boost in confidence in the company and he gets glowing reviews from the blogosphere.