A little silver lining on the dark economy cloud as reported by the Associated Press:

SAN FRANCISCO (AP) — Apple Inc. slashed the entry price for an iPhone in half and rolled out new laptops for $300 less than previous models Monday, the company’s first dramatic price cuts since the recession began a year and a half ago.

Apple unveiled two new models of the iPhone – the 3G S – that will sport a faster processor and sought-after features like an internal compass, a video camera and an improved photo camera. A 16-gigabyte version of the 3G S will cost $199 and a 32-gigabyte model will be $299. The 8-gigabyte iPhone 3G, which came out last year, will be cut to $99 from $199.

All those people who dished out $599 two years ago for lesser phones will be really glad to hear this news. Or not.