Apple Sets iPhone Price at $399 for this Holiday Season

SAN FRANCISCO—September 5, 2007—Apple® today announced that it is on track to sell its one millionth iPhone™ before the end of September, and to make iPhone affordable for even more customers this holiday season, it is lowering the price of the most popular iPhone model with 8GB of storage from $599 to just $399.

"The surveys are in and iPhone customer satisfaction scores are higher than we've ever seen for any Apple product," said Steve Jobs, Apple's CEO. "We've clearly got a breakthrough product and we want to make it affordable for even more customers as we enter this holiday season."

The 8GB iPhone is available immediately for $399 in the US through Apple's retail and online stores and AT&T retail stores. The iPhone 4GB model will be sold while supplies last.

This press release contains a forward-looking statement about the Company's expected iPhone sales that involves risks and uncertainties, and actual results may differ. These risks and uncertainties include those found in the Company's public reports filed with the SEC, including the Company's Form 10-K for the fiscal year ended September 30, 2006, and its Forms 10-Q for the quarters ended December 30, 2006, March 31, 2007 and June 30, 2007. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market this year with its revolutionary iPhone.

Slimmed down, its wide 2" screen is built for video, and at 320x240 pixels, it's the highest-density screen ever produced by Apple. It still looks small enough to deserve the name "nano," easily pocketable but with a screen that takes up a larger portion of its overall facade.

It'll also be available in more colors, including black, dark red, silver, light blue, light green, and the red one will be part of Project Red. According to Steve Jobs, the video-playin' pocket players are going to be $149 for the 4GB model (only available in silver) and $199 for the 8GB version. Jobs said they'll be in stores by this weekend.

Apple Introduces All New iPod nano
World's Most Popular Music Player Now Plays Video

SAN FRANCISCO—September 5, 2007—Apple® today introduced the all new iPod® nano, bringing video playback, an enhanced user interface featuring Cover Flow™, and an incredible new design to the world's most popular music player. The new iPod nano features a larger two-inch display with 204 pixels per inch, which lets users watch their favorite movies, TV shows and music videos in the same resolution they currently enjoy on the video iPod. iPod nano also includes three fun games, and additional games can be purchased from the online iTunes® Store (www.itunes.com). iPod nano delivers up to 24 hours of audio playback or five hours of video playback on a single charge, and is encased in a beautiful new all-metal design made with anodized aluminum and polished stainless steel and comes in five new colors—silver, black, blue, green and a (PRODUCT) RED special edition.

"We've taken the most popular music player in the world and added stunning video playback just in time for the holiday season," said Steve Jobs, Apple's CEO. "The iPod nano just keeps getting better and better with each new generation."

The all new iPod nano features a 204 pixel per inch display that is 65 percent brighter than the previous generation and delivers 320x240 resolution that is perfect for watching your favorite movies and TV shows on the go. iPod nano also features an enhanced user interface that shows off album artwork and photos like never before, and now includes Cover Flow, so you can scroll through your entire music collection by album cover artwork using the Click Wheel.

The all new iPod nano is perfect for playing iPod games and comes pre-loaded with iQuiz, the entertainment trivia game; Vortex, a fast-paced 360 degree brick-bashing game; and Klondike, the popular solitaire card game. Additional games will be available for iPod nano later this month from the iTunes Store, including Sudoku and Tetris from Electronic Arts and Ms. PAC-MAN from NAMCO.

iPod nano works seamlessly with iTunes so you can import, manage, and then easily auto-sync your favorite content. Buy music, video, and games for your iPod nano from the iTunes Store with more than six million songs available for preview and one-click purchase. With up to 24 hours of audio playback or five hours of video playback on a single charge,* the all new iPod nano is the ultra-portable way to enjoy your favorite music, TV shows and movies on the go.

The iPod is the world's most popular family of digital music players with over 100 million sold. Today, Apple released its most exciting iPod lineup ever with the iPod shuffle in five new colors; iPod classic holding up to 40,000 songs; the incredible all new iPod nano with video playback; and the breakthrough iPod touch with a revolutionary multi-touch user interface. iPod owners can choose from a vast ecosystem of accessories with over 4,000 products made specifically for the iPod including cases, fitness accessories, speaker systems and iPod connectivity in over 70 percent of US automobiles.

Pricing & Availability
Available today, the 4GB iPod nano comes in silver for just $149 (US) and the 8GB model is available in silver, black, blue, green and a (PRODUCT) RED special edition for just $199 (US). Both the 4GB and 8GB iPod nano for Windows or Mac are available worldwide immediately through the Apple Store® (www.apple.com), Apple's retail stores and Apple Authorized Resellers. All iPod nano models include earbud headphones, a USB to 30-pin cable and a Universal Dock Connector.

iPod nano requires a Mac® with a USB 2.0 port, Mac OS® X v10.4.8 or later and iTunes 7.4; or a Windows PC with a USB 2.0 port and Windows Vista or Windows XP Home or Professional (Service Pack 2) or later and iTunes 7.4. Internet access is required and a broadband connection is recommended, fees may apply. The iTunes Store is not available in all countries.

* Battery life and number of charge cycles vary by use and settings. See www.apple.com/batteries for more information. Music capacity is based on four minutes per song and 128-Kbps AAC encoding; actual capacity varies by content; photo capacity is based on iPod-viewable photos transferred from iTunes; and video capacity is based on H.264 1.5-Mbps video at 640-by-480 resolution combined with 128-Kbps audio; actual capacity varies by content.

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market this year with its revolutionary iPhone.

Usually, when a gadget's press release hits the wires, its nowhere near as exciting as a leaked spy shot. I don't know if that's the case for Apple products, esp when The Steve does the Boom-show.

Obviously, that doesn't mean that we'll stop reporting speculation, or that I don't appreciate the fine work done over at the Apple Insider, Macrumors, ThinkSecret and Infinite Loop. This is our job, and it's a pretty fun one at that, as we race to break a story. I just wonder what the psychology is behind Apple employees, contractors and supply and retail chain employees who pass on info after swearing not to. And I wonder what effect that has on us as fans of the latest and greatest hardware.

I've always preferred surprises to spoilers. You?

I know, it's tough going into an Apple event jaded. We already love/have/hate iPhones, so loving/hating/having anything less doesn't quite give us that foaming-at-mouth effect. [Thinksecret]