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Dongmei Li is seeking $1 million in damages in a lawsuit that claims that Apple violated price discrimination laws by cutting the phone's price just two months after it was introduced.

Taken aback by the anger of early adopters who had paid $599 for their phones, Apple uncharacteristically apologised and offered a $100 Apple Store voucher in compensation. But that was not enough for Li, for whom the price cut means that she cannot sell her iPhone for the same profit as those who bought one after then 40% reduction in the retail price. She also claims that the minimum two-year contract for the phone is unfair.

Li purchased the 4GB model for $499; that has since been discontinued and the only iPhone available now is the $399 8GB version.

As is usual in ongoing legal disputes, Apple declined to comment.

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