Apple announced a $200 price cut on the iPhone at a San Francisco press event on 5 September 2007, bringing the 8GB model down to $399. The company paired the reduction with a broad iPod refresh aimed at the holiday shopping season.

The centerpiece of the lineup was the iPod Touch, a Wi-Fi device with a multitouch screen that replicates the iPhone experience without cellular hardware. It ships in 8GB ($299) and 16GB ($399) versions and bundles Safari, Google and Yahoo search, YouTube playback, and an iTunes Wi-Fi Music Store that lets users buy music without going through a computer. The Touch is slated to ship worldwide first among the new models.

The Nano was updated to support video playback and games, priced at $149 for 4GB and $199 for 8GB. The original iPod model was rechristened the Classic and will be offered in 80GB and 160GB versions. The compact Shuffle received new color options.

Apple also announced a deal with Starbucks giving iPod Touch and iPhone users free wireless access to the iTunes store at any of the chain's coffee shops. A dedicated icon appears when a user is near a Starbucks location, with a one-tap option to buy whatever song is playing for 99 cents. A Wi-Fi iTunes update for existing iPhones is due later in September.

Historical summary. TurkishPress restated this wire report, first published in September 2007, in its own words.