A New York woman Dongmei Li, sued Apple Inc. for slashing US$200 of iPhone’s price from US$599 to $399 within two months the product was launched. She filed a lawsuit on Sept. 24, 2007 in the U.S. District Court, Eastern District of New York, seeking US$1million in damages.

According to Li’s lawsuit, she claimed that Apple Inc. violated price discrimination laws when it slashed the price of the 8GB model to $399. Li purchased a 4GB iPhone for $499 and alleged that owners who bought the 8GB model during price cut were given more favorable terms than her.

Those early birds who purchased with full price cannot resell the iPhone for the same profit as those who bought the cell phone following the price cut.

However, Apple issued an apology and refunded $200 for those who bought the phone within 14 days of the reduction. And offered a $100 credit at Apple stores for those who purchased the higher-priced phone before that period.