After protests over its decision to cut the price of the iPhone by $200, Apple will give iPhone users a $100 store credit.

The company on Thursday posted an open letter from CEO Steve Jobs on its Web site defending the decision to cut the price of the 8GB iPhone from $599 to $399, but acknowledging that Apple shouldn’t have treated its early adopters in such a fashion. Jobs had announced the price cut just a day earlier at a San Francisco event at which the company unveiled a refresh of its iPod line, including the new iPod Touch. [Cnet.com]