The announcement from Apple that they were reducing the price of the iPhone brought a mix of emotions. The happiness of those considering the iPhone is obvious, they can now get a great product for a reasonable cost.  The surprising reaction to me is the rage from those customers who have already purchased the popular iPhone.  They made comments to the effect that they were getting screwed by Apple because someone else was getting a better deal.  In reality this is a huge shift for Apple, and I can understand the shock that the customers had.  Apple has never really reduced the prices of their technology as it becomes outdated.  There production costs go down, as technology becomes cheaper, they make a greater profit, and the customers are happy because at least every body is paying the same price.  Rather than reducing the price on older models they quite making them and move on to the next product, at the same price.  This is very unique technology hardware industry. Just look at VCR’s, DVD Players, and Blueray Players.  No one is screaming about the fact that these technologies become easier and cheaper to produce and therefore the price went down.  I can not figure out why people are upset because for the first time in recent history Apple decided to pass the savings on to the customer.  How dare they give the customer a fair price? But I guess all of the complaints have paid off for these early adopters.  Apple is giving them a $100 Rebate on apple products.  I personally think the  early adopters of the iPhone that are complaining about the price drop are idiots, but Apple is a very touchy feely kind of a company, so I would expect a move like this to keep there customers happy.  Can’t you feel the love?  I guess they have to keep that feeing going, how else will they keep the customers paying 2-3X what they would for equivalent  PC hardware?