Cheaper Iphone ??

I couldn't believe it myself, but its true! Apple has cut down the iphone rate to nearly half of the original price. From 400$ to 200$. Could it mean that Apple has realised that the iphone is not really worth it ?? Or is it just coping up with the falling prices? Probably the latter. In either case, its good news for people like me who have plans of getting a new phone.