Print 76 comment(s) - last by rdeegvainl.. on Sep 8 at 9:13 AM

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: Act First, Think Later
By Murst on 9/6/2007 5:00:02 PM , Rating: 2
Its still better than nothing.

I can't think of another time when a company did something like this.

RE: Act First, Think Later
By TomZ on 9/6/07, Rating: 0
RE: Act First, Think Later
By Pirks on 9/6/07, Rating: -1
RE: Act First, Think Later
By TomZ on 9/6/2007 5:57:52 PM , Rating: 1
The comparison between this situation and WinFS makes no sense. WinFS was a product/feature that was cancelled. Apple made a pricing/customer relations mistake. Not even close to similar.

Nice try, save your Microsoft venom for some other thread.

RE: Act First, Think Later
By Pirks on 9/6/07, Rating: -1
RE: Act First, Think Later
By TomZ on 9/6/2007 10:26:38 PM , Rating: 2
Blah, blah, blah. You did realize this article was about Apple, right?

The only response I'll give you is this - you mentioned Russinovich a few times - I'm guessing he doesn't think Windows is too bad, or that Microsoft is too evil. I mean, you know what company he works for, right?

Anyway, get a life. All that hate is bad for you.

RE: Act First, Think Later
By Pirks on 9/7/2007 12:37:00 AM , Rating: 1
I wouldn't even have started posting all this had I NOT known who the heck is Russinovich and who he works for. Anyway, you have to read some more on Windows architecture, start with a) registry and its comparison with other ways to store app config data b) network throttling in vista and why it's done and c) file name restrictions in Vista. Of course you seem to not understand what I'm talking about, since you haven't read about it.

As for the article - yes, I know this is offtopic, but you mentioned other companies and I mentioned about one obvious example of "another company"

Treat it as an example please, there are other companies besides MS doing similar ugly things. I didn't mean that MS is the only one patching and hacking its products instead of doing proper design from scratch. There are others.

And, finally, I never said Windows is too bad. It is bad but yet bearable because people got used to its ugly ways. It is ok by itself, but it starts to look more and more ugly when you compare it to other more modern OSes, Mac OS is an obvious example. To understand why - you have to read up on the OS architecture topics I told you about.

P.S. Also please leave your "MS is too evil" fantasies to yourself. Thank you.

RE: Act First, Think Later
By rdeegvainl on 9/7/2007 1:46:08 AM , Rating: 2
Wow, I can't even begin to describe the diatribe i just read over your last few post, first you complain that your mac buddies rag on you for not getting sp's, then you complain that windows has so many patches. Then you go into some pseudo-cultist rant about Russinvich, swearing people have to read it, over and over. Your starting to sound like a fanatic. If you think other OS's are better, and have better architecture, that's cool and I'm glad you actually have a stated reason behind it (most just use FUD), but the biggest advantage that WINDOWS has is familiarity, with nearly literally all people who use computers. That will also keep them in the lead for many many years to come. I don't believe windows is all that and a bag of chips, (i had to get my own chips) and i am looking into working with Linux for familiarity (would try mac but not enough money) but it seems obvious that throttling at 100mb/s isn't really an issue with 99 percent of those who use machines and the huge mess that is REGISTRY, are inconvenient, but not at all deciding factors on which service to use. The main factor is compatability, with windows you just have more choices, and that is what mac needs to work on, getting people to know what choices they have, and working with developers to make things compatable with mac, sure they already do, but they need to go all out, if they really want to capture the non hate attention of more people, instead of just using elitist mentality.
that is all

RE: Act First, Think Later
By TomZ on 9/7/2007 10:24:20 AM , Rating: 2
Of course you seem to not understand what I'm talking about, since you haven't read about it.

I've been a software engineer writing apps for Windows since about 1990 and device drivers for about the past 10 years, so I'd say I have more than just a passing familiarity with Windows. Prior to that I took several OS courses in college while earning my engineering degrees.

Look, no large software system is going to be perfect, especially one that has evolved over the past 20 years and which has such a strong emphasis on backward compatibility. I agree that Windows has some warts, but so what? When you look at what is important, it works for people - for end users, developers, hardware vendors, etc. That's more important than it being truly perfect and elegant in every way.

MacOS is based on Unix, so I doubt it is without its warts as well.

RE: Act First, Think Later
By mihai on 9/6/2007 5:52:34 PM , Rating: 2
I wouldn’t say a mistake. It was more like gambling and a bit of greed. The hype was so high, they thought people will buy it like fresh bread.

Yet customers were aware of the phone being overpriced - a week from its launch, news came out showing the phone components cost around $250. So I don’t understand why all the grief now, when a more decent price is asked. It’s not like people didn’t know the price premium they were paying. The $100 is really a gift to those who were so eager to have it that they didn't mind being ripped off.

BTW, I wonder if AT&T has something to do with this sharp price drop. I’m sure they were expecting higher sales as well.

RE: Act First, Think Later
By rdeegvainl on 9/7/2007 1:51:09 AM , Rating: 2
It's kind of like the collectors mentality, that it is worth so much because so few people will have it, that when the price drops, they are forced to look at the real value of the item, and get mad that companies made whatever it is more accessible to everyone else. Elitist wanting to pay to be elitist, and complaining when others get a better deal, if you thought the IPHONE was worth 600 dollars and paid for it and were happy, then what did you lose? but most people don't think the IPHONE is worth 600 so they didn't buy it and apple lowered the price. Still such a steep price drop just shows what kind of crap price it had to begin with.

"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation
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