How cheap can iPhone go?

[cbelt3]

The ability to maintain margins is Apple's primary advantage in the marketplace. Holding price while agressively reducing manufacturing price and maintaining quality and market share is Apple's main business advantage. As discussed before, a rampant quality drop would result in brand erosion. The Apple brand, and it's meaning for quality, performance, and "Just working" is Apple's primary asset.

I can guarantee they will be as careful as possible with any change.