The $200 price cut of the iPhone in the US caused an absolute ruckus across the pond. Steve Jobs explained in depth the reasons behind the decision in his open letter.

During the launch of the iPhone, Steve Jobs refused to rule out any future price cuts. Although he did say it was unlikely, and that, at the moment, they couldn't make it any lower without becoming a "total philanthropy", which I'm sure we can all agree isn't really the Apple we know and love.