Right after the Swiss Apple Store leaks information regarding the 802.11n AirPort Express, the Dutch iTunes Store leaks information regarding a possible iPod touch price drop. A graphic, shown on the store, shows an iPod touch and says “from €199″. That’s about €80 less than the current price, equalling out to about a $100 price drop. The drop would bring the 8GB model down to about $200, which is pretty reasonable, and cheaper than the low-end iPod classic. Although some may classify this as an accident, most call it a leak, especially so soon after the Swiss leak. Along with the leak, some speculate that Apple may drop the 8GB model altogether, making the iPod touch really cheap, though I suppose we’ll have to wait it out and see.
Via [Ars Technica]
If it's from €199, then the price in US Dollars is actually about $300.
But I think that what Alec was aiming at is that if the U.S. were to see a similar price cut, it would bring down the cost of the 8GB to $200.
I don't see Apple having a $200 iPod touch. I see them dropping the 8GB and having 16GB and 32GB models at $300 and $400 respectively. If that happens, I will be EXTREMELY happy.