It's traditional for cell phone makers to drop the price of their devices over time as costs come down. For the iPhone, I think we'll see a $150 before $99.
But Apple has surprised me lately with moves I didn't think they had the DNA to formulate the behavioral characteristics to make. Gone are the days of "my way or the highway" approach. Sometimes.
Take the $200 drop on iPhone just this July for the iPhone 3G. A younger Jobs might have stuck to his guns. Now, it's Apple talks about sacrificing near term margins to leave no umbrella room for competitors.
But the impact of a $99 is mind-boggling. If adoption rates increase 2-3 times, it truly leaves very little room for competitors to move.
My only question is what happens to the iPod Touch.