...Apple chose to go against the grain though, didn't they
Admittedly, it cost them sales (we can see the surge when they dropped the price) so for them to drop the iPhone to £100 would be a bold move.
I can see £169 being the price, £100 seems too low for an iPod + phone
My point wasn't that the iPhone helps you start a conversation, but rather because it's exclusive to 02, and it's a rare phone to have so people usually comment. Lowering the price to £100 would make it sell, there's no doubt about that.
It's like having a Ford Fiesta.. you have it, it runs great but no one really says "Cool, a fiesta.. I want one". Whereas the iPhone is like the Ariel Atom. It's pricey, small and it can turn heads because it's rare and people are interested because of the "cool" factor.