As predicted, Apple's own price reduction helped force down the price of the latest iPhone competitor. Sprint went further than it had announced, though, and is introducing the new Samsung Instinct for $130 tomorrow (with plan and after rebate).
Still, a $70 discount off the iPhone's price won't be enough to sway people. The iPhone has too much buzz. Much of it is well deserved, with the fun that software from Apple, and outside developers, is bringing to the phone.
Some people will choose the Instinct because they don't like the coverage or service offered by AT&T, which is the iPhone's exclusive carrier. Or true power users who wirelessly swap a lot of photos or surf the Web might be drawn to Sprint's $100 unlimited plan for voice, data, and text. The same $100 gets you only unlimited voice with AT&T.