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Apple Inc recently launched iPhone for 99 U.S. dollars only. This action is a strategy to expand the market after Palm Inc has launched Pre. Apple also cut the price of the Mac notebook in the middle of company competition to deal with the economic recession.

Analysts estimate the sale of cheaper iPhone may be increased two-fold. However, Apple still retains their high end mobile phone.

These phone half prices cheaper compare with the Palm products that being released to the market with price at 199 U.S. dollars. According to Reuters, Lawrence Harris of CL King & Associates said the pricing policy on iPhone with 8 gigabyte capacity is a strategy to defeat Pre.

Meanwhile, the iPhone 3GS will be release on June 19 in the U.S. and in Germany this iPhone will be released in the price range of 199-299 U.S. dollars. The phone is claimed have speed twice faster compared with the previous versions.