Marketwatch informs us that analysts are worried about the steep price cut for the iPhone.

Investors showed more concerns about Apple Inc. Thursday, as the consumer electronics maker appeared to be having trouble convincing the market that its steep price cut on the iPhone isn’t a sign that the ballyhooed mobile device is falling short of the market’s expectations.

By midday Thursday, Apple shares gave up nearly 2% to trade at $134.27 on heavier-than-normal volume.

The action came one day after the stock fell more than 5% following a company event in which Apple (AAPL:135.19, -1.57, -1.1%) Chief Executive Steve Jobs announced that the 8-gigabyte iPhone will now sell for $399 - which is $200 less than the price the device has carried since it came out on June 29.

Apple’s shares are still nearly 60% above their level at the beginning of the year, before the company unveiled the iPhone at a trade conference.

The stock surged nearly 15% in the days before Wednesday’s event on speculation of what new products the company would announce.

At the event in San Francisco, Jobs also said that Apple would phase out its 4GB iPhone due to what he said was overwhelming signs of demand for the the 8GB model. The 4GB version had cost $499.

The iPhone announcements partially overshadowed Apple’s largest revamp of its line of iPod music and video players in two years, and led some analysts and many investors to believe that Apple is experiencing weaker iPhone sales following initial weekend sales of 270,000 units.

Damn the analysts, here’s the real news: I was wondering whether a $600 iPhone really fit my “needs” (by which, of course, I mean, “technolust"); the $200 price cut almost ensures that I’ll have an iPhone in the near future. Keep in mind that the price drop for the 8 gig iPhone (now $399) drops its price below the original price of the 4 gig model ($499).

When the press conference was announced, I had already planned on budgeting to replace my trusty Nano with the new model that was sure to be announced. I wasn’t disappointed: the Fat Nano emerged as predicted with all sorts of new features. But then Steve had to go and break out the iPod Touch--essentially an iPhone without the phone bits and a few other features, but set up for WiFi--for just $299. Cool.

In fact, until I read about the price drop for the iPhone, I was ready to sign up for the Touch. But that voice is whispering in the back of my head: just a hundred bucks more buys you the full experience.

I’ve never been good at ignoring the little voice in my head, and now Apple has given that little voice a megaphone. Bastards.

I don’t know if demand was soft for the iPhone at the $499/$599 price point, but I can’t help but think that the big gift on lots of Christmas lists this year will be the $399 iPhone. Compared to the original price, it seems like a hell of a deal and it’s attached to one of the coolest gadgets to come along in years. The move might have been directly related to soft demand--in fact, if Apple could sell enough of the phones at the original price, they wouldn’t have dropped the two hundred bucks, would they--but that doesn’t make it a bad move. Addressing market concerns quickly and creating new buzz for the iPhone is hardly a bad thing, is it?

There’s still a chance that I’ll go the iPod Touch route instead and, honestly, it would make a heck of a replacement for my Nano. Still, I’m having a hard time getting that voice out of my head…