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"The surveys are in and iPhone customer satisfaction scores are higher than we've ever seen for any Apple product," said Apple chief executive Steve Jobs. "We've clearly got a breakthrough product and we want to make it affordable for even more customers as we enter this holiday season."
The 8GB iPhone is available immediately for $399 in the US through Apple's retail and online stores and AT&T retail stores.
The iPhone 4GB model will be sold while supplies last for $299, Apple said.