There have been many mixed reactions to the price of Apple’s new iPhone. Apple will sell the iPhone for $499 or $599, depending on configuration which seems expensive. And those prices require a 2-year contract with Cingular. Apparently, this is more than many people were expecting. It’s more than I was hoping for. But it makes sense when you add up the numbers.

A full size iPod will cost $250 or $350. Many of the nicer smart phones are in the $100 to $400 range, including a 2-year contract. Adding those up gives a $350 to $750 range for an iPod and a smart phone. For people who own both, $499 or $599 for Apple’s new iPhone is just about right. Notice that those prices are in the middle of the range. Apple’s product have been priced very competitively for years, and the iPhone is no exception. I predict the iPhone will sell really well.

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