Apple today announced that the iphone (that previously sold for $199) is now on sale for $99. This price reduction is in response to the Palm Pre that is now available (retail price - $199) as well as the launch of the iphone 3G S - a faster version with more features. The iphone 3GS will also be sold at $199. Read more at Tech Crunch.  

Apple's brand has been built on cutting edge technology catering towards the younger, hipper, computer user. Apple is innovative and design focused. The brand is "cool", their products are cool, ads are cool, and the Apple suite of products is not for everyone. The reason why its so cool is because your mom doesn't use an iphone - you do. You are the tech saavy consumer that likes to have the latest, greatest products to show off to your friends and the design is so cool, you just have to have it.

So what does it mean if Apple is slashing its prices to gain greater market share with the iphone? Are they slashing their brand as well?