Apple's (AAPL) 'The beat goes on' - iPod Touch, iPhone price cut

More on the iPod. The original iPod will be renamed iPod Classic. The new ones will be even thinner iwith a full metal design, starting at 80GB audio 30 hours, video 6 hours. BUT, there will be a thicker one as well, a 160GB! Will have the capacity of 40,000 songs and a battery life of 40 hours audio, 7 hours video. The 80GB will sell for $250 ($100 less). The 160GB is $350. Will also be in stores by the weekend.

Only after all that Jobs got to what everyone have been waiting for - the iPod Touch. With the same size screen as the iPhone, the iPod Touch is even thinner. It's 8mm thin. Features: Multi-touch interface like on the iPhone, 3.5-inch widescreen display and Wi-Fi. Since it has a Wi-Fi, it has a Safari web browser. Battery life: 22 hours audio, 5 hours video playback. Two models: 8GB is $299 and a 16GB is $399. iPod Touch will come with a new application called the iTunes WiFi music store.

Meanwhile, a quick check at what AAPL is doing. When Jobs started announcing the iPods, the stock slipped but has recovered since. It is now down $1.43 or 0.99%. Perhaps investors were really hoping for an iPhone Nano.

The event goes on with some deal struck with Starbucks Corp. (NASDAQ: SBUX) where access to the music store will be unlimited while in a Starbucks location.

Then came another big announcement. The millionth iPhone will be shipped this month. The customers prefer the 8GB model so Apple is reducing its price - $399!!! That's from $599. Now that just doesn't sit right. Why would Apple cut the price of the iPhone if it's so successful and where would margins be???

AAPL stock price is tumbling down nearly 2%, some $2.8 to $141.35. In a down market it ain't so bad, but not the reaction you'd expect from a "special event."

And by the way, what about the 4GB iPhone? Discontinued?