Apple feels economic pinch, drops prices

Apple's WWDC (WorldWide Developer Conference) keynote speech is underway, but at the top of the agenda was an indication that Apple is feeling the pain of an economic pinch - price cuts.

So far two price cuts have been announced:

• The new 17" MacBook Pro sees the price shaved by $300, starting at $2,499.
• Revamped MacBook Air sees the price slashed by $700, prices now starting at $1,499.

[UPDATE: With the nouncement of the new iPhone 3GS, the price of the 8GB iPhone 3G is cut to $99.] 

These are pretty dramatic price drops and the only reason I can see for such cuts is that the slowing economy is starting to hit sales and Apple is hoping that being easier on buyer's wallets will encourage people to spend.

I'll have more to say about these new products later when details are released.