Apple Sets iPhone Price at $399 for This Holiday Season

Apple(R) today announced that it is on track to sell its one millionth iPhone(TM) 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.

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