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I think Mr. Jobs choose to sell the Iphone cheaper this time, because he knows that Google Android will be a very stronger competition to Iphone, so it was pretty clever in that way. I will definitely wait for the release of the HTC android mobile system.

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Actually I think they subsidized it to compete with the Blackberry and Palm phones. Most phones are subsidized to entice users to sign plans. With this price decrease it will be easier then ever for people to justify getting an iPhone. Apple is going to capture a huge chunk of the smart phone market because of this.

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