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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Technology > Article Home Business & Finance News U.S. Politics International Technology Internet Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Apple halves iPhone to $99, trims Mac prices Mon Jun 8, 2009 8:54pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Alexei Oreskovic and David Lawsky SAN FRANCISCO (Reuters) - Apple Inc halved the price of its entry-level iPhone to $99 on Monday to widen the trendy device's mass-market appeal, as global competition heats up after Palm Inc launched the Pre. Apple also cut prices on several of its Mac notebooks amid a tooth-and-nail battle among computer makers for buyers during the recession. And to shore up its hold on the smartphone market, it unveiled a new, faster, high-end iPhone that takes videos and has voice features, matching offerings by rivals Palm and Research in Motion's BlackBerry. Analysts said sales could double for the cheapest iPhone. Chief Executive Steve Jobs, on medical leave since January, did not put in a much speculated-about appearance. The next-generation iPhone 3GS -- the "S" stands for speed, double that of the original model -- goes on sale in the United States, Germany and elsewhere on June 19 for $199 to $299. "They plugged the hole in the offering of the 3G iPhone," Gartner analyst Van Baker said, referring to the new features. A rambunctious crowd livened up Apple's annual Worldwide Developers' Conference in downtown San Francisco on Monday, whooping and applauding as executives unveiled everything from a cheaper Mac Air notebook to a new operating system. Shares in Apple closed 0.6 percent down at $143.85 -- after a 6.5 percent climb in the week leading up to the highly anticipated event -- as Jobs failed to show and investors debated the merits of the sharp iPhone price cut. Morgan Stanley estimates that an entry-level iPhone, at what Apple marketing chief Phil Schiller calls a "breakthrough price of $99", could double existing sales. That is for the 8-gigabyte model, previously priced at $199. Apple said it has sold more than 40 million of its iPhones and music-playing iPod Touches to date, up from the 37 million reported during a quarterly earnings call in April. The new iPhone models and price cuts announced on Monday came days after Palm launched its Pre smartphone, which some analysts say is the iPhone's closest rival. Sprint Nextel Corp, which has exclusive U.S. rights to carry the Pre, said it had record sales of the smartphone in its first weekend, and was restocking the phones "as quickly as Palm could make them. A JAZZED-UP PHONE The $99 iPhone will cost half as much as the $199 Pre. By slashing the price of the 8-gigabyte iPhone and rolling models out this month, Apple's strategy appeared designed to take advantage of the Pre's limited availability, said CL King & Associates' Lawrence Harris. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: Most firms unaware of Web domain changes: survey Also On Reuters Apple cuts iPhone to $99, Jobs nowhere in sight Commentary: Watching Iran's presidential election Global Luxury Summit: Hermes breeds crocs to meet demand More Technology News Most firms unaware of Web domain changes: survey Tech cos enlist Democrat to blast Obama tax plan China to require software on PCs to block sites Sweden's free-Web Pirate Party captures Euro seat Fans gather for launch of "iPhone killer" Palm Pre | Video More Technology News... Video Apple cuts iPhone price Play Video More Video... Related News FACTBOX: New iPhone, upgraded Apple products 08 Jun 2009 Apple takes steps to expand corporate market 08 Jun 2009 Editor's Choice Slideshow A selection of our best photos from the past 24 hours. Slideshow Most Popular on Reuters Articles Video U.S. to allow 10 banks to repay TARP money: report U.S. war funding bill brims with unrelated extras Apple halves iPhone to $99, trims Mac prices | Video Apple halves iPhone to $99 to galvanize sales UPDATE 1-US bailout panel: more bank stress tests needed GLOBAL MARKETS-Asian shares falter on worries rally overdone Journalists' families ask North Korea for leniency Most firms unaware of Web domain changes: survey U.S. top court judge delays Chrysler sale for now Canadians angered over "Buy American" rule Most Popular Articles RSS Feed Video Air France search continues North Korea ups the stakes Obama expedites stimulus Families win Omagh bomb civil suit Bodies from Air France crash found Carradine mystery continues Centre-right dominates EU Elections China quarantines New Orleans mayor Tokyo's top dog skateboards Apple cuts iPhone price Most Popular Videos RSS Feed We want to hear from you Join the Reuters Consumer Insight Panel and help us get to know you better Please take a moment to complete our survey Reuters.com: Help and Contact Us | Advertise With Us | Mobile | Newsletters | RSS | Labs | Archive | Site Index | Video Index Thomson Reuters Corporate: Copyright | Disclaimer | Privacy | Professional Products | Professional Products Support | About Thomson Reuters | Careers International Editions: Africa | Arabic | Argentina | Brazil | Canada | China | France | Germany | India | Italy | Japan | Latin America | Mexico | Russia | Spain | United Kingdom | United States Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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