Apple's stroke of $2 billion dollar genius

"Apple truly doesn't have any competition!"

Steve Jobs introduced the new iPod lineup on Wednesday but that wasn't the big news. People's jaws dropped when Jobs announced a sudden drop of $200 on the iPhone only 10 weeks after the phone had debuted. To put it in perspective monetarily, Apple intends to try to sell over 10 million phones by the end of next year. So if they dropped the price $200 they are basically forfeiting a potential $1.84 billion.

Foolish, you say? Dropping the price because the phone is not selling, you say? To the contrary. Orange Hues has an insightful blog about the reasoning of Apple's choice. And we wonder why Apple with a small fraction of the actual PC market can continue to make such huge tidal waves...