Why a sudden price drop on Canon Rebel XSi?

Ive been saving up money to buy the Canon Rebel XSi because I felt like my parents old Canon Ae-1 Film Camera wasn't enough to my standards, so now that ive had enough money and done research I'm wondering why its gone so much cheaper, is it because a new one is coming out or are there contradictions with the camera?

It's not because there's a new Canon model coming out - the XSi is the brand new model in that niche.

It may be because another competitor is releasing a cheaper camera in the same niche. It may also be simply because it's been out for a few months and prices on electronics tend to drop over time.

From all I've heard it's a great camera. I wouldn't worry too much about the price drop. If anything it's good for you.

This isn't just an economy price drop. It's a brand new model just launched so what else could it be?

My guess is Sony. Sony's entry level A200 is getting solid reviews, and it's currently 499 with a lens. The A350 has the best live view (at this moment) it's 14 megapixels, stabilized in body, has a flip out LCD and it runs from about 650-700+ dollars. That's why.

In the past they only really had Nikon to worry about. The pricey new D60 and D300 is comfortable for them, the cheaper Sony's are not. So, it's good for you that Sony is here as they put pressure on Canon. I'm also convinced that the price of Canon's 40d went from about 1200-1300 to under 1000 so fast, Sony's Alpha A700 had some effect on that.

I don't know how much the price has dropped. But at least two factors at play:

- price of newly introduced models fall quite steeply initially
- the dollar has strenthened in the last month. That would affect import prices somewhat.

PS: looking at the Canon site hints at the XSi may be on the way out, to be replaced by the XS. They MSRP is the same for both models on canon's site:

http://www.usa.canon.com/consumer/contro...

The XSi just camer out a few months ago. If this is too good to be true, it just may be. Where is this great price? A reputable company like Adorama or BHphoto? If it is really cheap, there may be things missing like a battery and charger, or it could be just the body. Or most likely, gray market, which you do not want because there is no U.S. warranty. Investigate to make sure it is really a good deal.

There may be a new one coming out soon. It makes it a good bargain becouse the new models don't tend to be dramaticaly different. I bought a Sony Alpha-100 4 months after it's introduction. Paid $950 a good price then.A year later was like $499 at some places.

Economic 101: The invisible hand of Market Economy is working as it should be.

New one coming out soon, bad economic situation, the luxury goods market has fallen flat. Any or all the above.

Chris