The first iPhone was barely a success. Apple had to give a price drop merely two months after it went on sale. The second iPhone, the iPhone 3G, was the breakout hit. Then Apple changed the rollout process and used a 'cheap' price[1] to accelerate sales.
[1]'cheap' initial payment with an expensive mobile contract.
Apple had to give a price drop merely two months after it went on sale.
I speak as someone whose first iPhone was a 3G, but I think it's possible that the price drop was part of the plan all along. It was be a smart price segmentation move: get everyone who's unbearably keen to pay a whole lot, then move on to people who are bit less unbearably keen at a slightly lower price.
[1]'cheap' initial payment with an expensive mobile contract.