iPhones now cost only 399 USD after Apple cut prices barely 10 weeks after the launch.

Apple also introduced iPod Touch which Associated Press describes as “an iPhone without a cellphone”. The Cupertino-based company also debuted a new Nano with a two-inch screen that can play videos, and iPod Classic, which is actually a video iPod with 160GB storage.

Microsoft also brought down prices for its Zune.