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<div class="left_inner_box_heading"><h1>Apple Sets iPhone Price at $399 for this Holiday Season</h1></div>
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<p>Apple Sets iPhone Price at $399 for this Holiday Season</p>
<p>SAN FRANCISCO--September 5, 2007--Apple today announced that it is on track<br />
to sell its one millionth iPhone before the end of September, and to make<br />
iPhone affordable for even more customers this holiday season, it is<br />
lowering the price of the most popular iPhone model with 8GB of storage<br />
from $599 to just $399.</p>
<p>"The surveys are in and iPhone customer satisfaction scores are higher than<br />
we've ever seen for any Apple product," said Steve Jobs, Apple's CEO.<br />
"We've clearly got a breakthrough product and we want to make it affordable<br />
for even more customers as we enter this holiday season."</p>
<p>The 8GB iPhone is available immediately for $399 in the US through Apple's<br />
retail and online stores and AT&T retail stores. The iPhone 4GB model will<br />
be sold while supplies last.</p>
<p>This press release contains a forward-looking statement about the Company's<br />
expected iPhone sales that involves risks and uncertainties, and actual<br />
results may differ. These risks and uncertainties include those found in<br />
the Company's public reports filed with the SEC, including the Company's<br />
Form 10-K for the fiscal year ended September 30, 2006, and its Forms 10-Q<br />
for the quarters ended December 30, 2006, March 31, 2007 and June 30, 2007.<br />
The Company assumes no obligation to update any forward-looking statements<br />
or information, which speak as of their respective dates.</p>
<p>Apple ignited the personal computer revolution in the 1970s with the Apple<br />
II and reinvented the personal computer in the 1980s with the Macintosh.<br />
Today, Apple continues to lead the industry in innovation with its<br />
award-winning computers, OS X operating system and iLife and professional<br />
applications. Apple is also spearheading the digital media revolution with<br />
its iPod portable music and video players and iTunes online store, and has<br />
entered the mobile phone market this year with its revolutionary iPhone.</p>
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