IPhone and Wi-Fi iPod

"Apple also said it would phase out the iPhone's 4-gigabyte model. The price cut - an indication sales of the product may not be keeping up with expectations - came as Apple unveiled a revamped iPod lineup that included a new touch-screen device that can connect via Wi-Fi networks to the Internet. Apple shares fell 4% to $138.42 following news of the price cut.
"I think it's a sign that the iPhone isn't selling as fast as they hoped for, so they decided to get aggressive on price," said Van Baker, an analyst at Gartner Inc."

So now that the new iPod model is out... what does that mean for the older models?.. Will they be phased out aswell? Also, Apple is moving too fast with their expectations on the success of their new products coming out. Two months in on the iPhone's release and they are already dropping the price by $200. That just shows the amount of desperation that Apple is having to try to get their products to their consumers without thinking ahead of profit... or could this possibly be a good move on Apple's part. Thinking that with the price drop, the amount of sales will increase too.

-Mike