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Steve Jobs has a change of heart

Yesterday's announcement of the $200 price reduction for the 8GB iPhone was a shock to the system. No one in the industry was expecting it and customers that had already purchased the machine at the $599 price point were fuming mad. To get an idea about how angry some customers were, look no further than this thread at Mac Rumors which is 1500+ posts long.

Steve Jobs got also got an earful with irate customers and his inbox was overloaded with customer complaints about the $200 price cut after only two months on the market.  In an open letter to all iPhone customers, Steve Jobs expressed his "observations and conclusions."

"First, I am sure that we are making the correct decision to lower the price of the 8GB iPhone from $599 to $399, and that now is the right time to do it," said Jobs. "It benefits both Apple and every iPhone user to get as many new customers as possible in the iPhone 'tent'. We strongly believe the $399 price will help us do just that this holiday season."

On the flipside, Jobs was also sympathetic to the outrage expressed by existing iPhone owners. “Therefore, we have decided to offer every iPhone customer who purchased an iPhone from either Apple or AT&T, and who is not receiving a rebate or any other consideration, a $100 store credit towards the purchase of any product at an Apple Retail Store or the Apple Online Store," Jobs continued.

Jobs noted that more details will be posted next week as Apple and AT&T work out the details of the program.

$100 of in-store credit isn't exactly the same thing as $200 in cold cash, but it's surely better than nothing at all.



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RE: Note to all Apple haters
By Legionosh on 9/6/2007 4:56:33 PM , Rating: 1
I think this is a slightly different situation.

It's been 60-70 days TOPS since the release of the iphone..most "popular" electronic devices do NOT get a price cut this soon after release..

..especially one of this magnitude. I mean a price cut is one thing, and we come to expect it on most everything we buy given enough time (as is par for the course for most electronic devices)..

..but to cut the price by 33% so soon after release is unheard of.

If the iphone was selling as well as expected or proclaimed I see no reason why Apple would cut the prices so drastically. The MEGA successful iPod NEVER saw a price cut like this.

Granted the cell phone business is a constantly evolving and ever changing beast, but still I don't recall any supposedly successful pricey cell phones being cut so soon after launch.

I can definitely see why customers would be upset. I would be too..

..if I could afford a $600 (well $400) phone...

My two cents,
Kevin

legionosh@msn.com


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