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iVIP have cut the price of their mid-range iPhone application, iVIP Blue, from £279.99 to just £9.99, the biggest cost reduction in iTunes history.

The iPhone application provides access to privileges and benefits across a range of luxury partners including a concierge, supercars, private members clubs, and private aviation.

iVIP Marketing Director Matthew Rowe said:

“We want to make the iVIP network more accessible to people who enjoy, or want to enjoy, a luxury lifestyle.

“iVIP Blue members who use the service regularly can potentially save themselves up to £5,000 per year through privileged rates with our luxury partners so we think the new price of £9.99 offers fantastic value.”

iVIP Black, the company’s  ‘Millionaire’s App’, remains at £599.99 iTunes’ most expensive app. The membership fee includes a private ‘Lifestyle Consultation’ with iVIP tailored to the specific user.

iVIP Blue can be seen here:

http://itunes.com/apps/ivipltd/ivipblue

iVIP Black can be seen here:

http://itunes.com/apps/ivipltd/ivipblack

iVIP Red is also available, which offers (for free) an insight into the benefits and privileges iVIP members are eligible for.

http://itunes.com/apps/ivipltd/ivipred

The songs will also have better audio quality.

This opens them up to direct competition from other MP3 manufacturers; users can now buy music through the iTunes store and use it on their Creative/Sony/name-a-brand MP3 player.

This has two major ramifications for Apple – users wedded to iTunes could move away from iPods, costing Apple on the hardware side; or users of other MP3 players will begin to use the iTunes store and increase Apple’s share of the download market.

At face value, there seems more to be gained from opening the store – there are millions of users who will potentially download millions of tracks to their native players. Some may move away from iPods to other options, but Apple are effectively backing themselves to have the best hardware.