Ben Kunz, writing for Bloomberg Businessweek on “How Apple plays the pricing game”:
The popular iPod Touch media player has been revamped at three
price points — $229, $299, and $399 — all costing more than the
iPhone, which does everything the Touch can plus make phone calls.
What gives? Watch Apple, and you can learn pricing tricks for your
I’m sure the expensive two-year AT&T contract for the iPhone has nothing to do with its price.