As has been proven before, my math is quite bad and the figure that Apple is eating is USD90 million, not USD9 million as originally reported.

During the iPod press event held on Wednesday, Apple announced a USD200 price drop for its 8GB iPhone (now costing USD399) and did away with the 4GB model. This came with mixed response–obviously those who had not bought an iPhone yet rejoiced, but the early adopters were left with a sour taste in the mouth.

Apple therefore has announced that it would offer USD100 credit to all iPhone customers who bought the phone at the old price in a letter from Steve Jobs. During Wednesday’s even, Steve said that Apple was on track to sell it’s millionth iPhone in September. So assuming that they have sold 900,000 iPhones, they are effectively eating profits worth USD90 million to keep their existing customers happy.

How awesome is that??!! If only more companies could be more like Apple in their commitment to their customers. Plus, Apple knows that a lot of the iPhone customers are probably first-time Apple customers so it’s really smart to make them fans of the company.

I wonder how this move affects their partner AT&T..? I think that they wouldn’t do it unless they’ve got a new product to now fill the vacant USD599 price point. I say we’ll see the 3G iPhone coming real soon.