The original iPhone was 600 dollars ON contract, which was later dropped to 500.

Yes, some people figured out how to crack the SIM-lock, so they could use a different sim card and not activate the AT&T contract that you were supposed to activate when first connecting it to iTunes, but that's an edge case that doesn't change the fact that it was sold on contract.

The 650 dollar price for iphone 6 is OFF contract. So the iPhone price has significantly dropped over the years.

The original iPhone was on contract but unsubsidized. The iPhone 3G was launched at $199 with a 2 year contract and every iPhone since then has stuck exactly at that price point at launch.

You guys are only talking about the states right?

Well, the price drop of the iPhone only happened once and then hasn't really happened since (besides selling older models for cheaper).

Is once enough to denote a trend? I'm willing to bet that Apple will release a cheaper option next year, but maintain the $350 "flagship".

I think what the above commenter means is that the first gen iWatch will keep the tooling and production the same and price will lower, while at the same time adding newer models at the same price point as the first gen at its release, therefore filling out the low end the same way they did with the iPhone.

No but you can buy the iPhone 5C for $450.00 If the watch follows a similar path then a year after release there could possibly be an Apple Watch for 250.00 (maybe 200). I'm not sure it'll ever get to $100 (Apple prefers not to play that low).

That's not true. Apple drops the price on older models while continuing to sell them alongside the newest ones. The cheapest new iPhone you can buy is $450.

Yea so you can buy old models at a cheaper price. 2 years from now maybe you'll be able to buy the Apple Watch 1 for $250 or something but most people will want the latest version. I seriously doubt we'd ever see Apple sell the Watch for $100, that's just not how they do business.