If there were no price change with the 8GB iPhone I'd say yes. The $200 price drop on the 8GB model more than covers it. Sales will be fine I'd suspect.
I bought a 4GB iPhone because I wanted to minimize my financial risk, and I wanted to get a "Yes" from my wife on getting one. The difference in price is trivial over a two year term when you consider the overall expense of the phone and service, but it did make the difference between getting it and not.
Now, do I feel cheated that the 4GB device is going away, and that the 8GB devices are now $200 cheaper? Nah. I love my little iPhone, and I'm listening to music on it now. Before my iPhone, I hated cell phones, and almost never used mine, but this little machine is a joy to use.
Shop for your Apple, Mac, iPhone and other computer products on Amazon.
We are a participant in the Amazon Services LLC Associates Program, an affiliate program designed to provide a means for us to earn fees by linking to Amazon and affiliated sites.