CUPERTINO, California: Apple Computer's slashing of the price of its much-hyped iPhone by $200 (€146; £99) has caused much wailing and gnashing of teeth among consumers who lined up for hours, if not days, to pay top dollar for the 'must have' gadget.

So much so, in fact, that Apple ceo Steve Jobs has now offered a $100 credit to all iPhone users who paid the original price.

In a letter on the company website he said: "Our early customers trusted us, and we must live up to that trust with our actions in moments like these."

Further details of how the refunds will work are to appear on the website this week.

The price cut, revealed last Thursday, was made in an effort to boost holiday season sales, according to Apple.

Data sourced from Wall Street Journal Online; additional content by WARC staff