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9-to-5 Mac says it has received a tip that Apple plans to cut iPhone and iPod touch pricing by $100, as well as stop selling the 8GB touch.

Here's the skinny of prices:

• iPod touch
— 8GB $199
— 16GB $299
— 32GB $399

• iPhone
— 8GB $299
— 16GB $399

Memory prices have fallen a lot since Apple last iPhone cut prices in September and since new iPods were launched last year. Recent reports indicate that Apple's cut iPod production and that music player sales have stalled.

So, Apple's faced with falling sales and falling component prices. What would you do to correct the problem?

Lastly, there's really only one reason Apple wouldn't cut prices soon after the introduction of new models—it will generate lots of bad PR, just like September cuts did last year. Apple Store vouchers, anyone?

So, the choices seem to be: 1.) save face / lose sales, and 2.) swallow hard / boost sales...

What's your take?

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