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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: Act First, Think Later
By TomZ on 9/6/2007 5:20:17 PM , Rating: 2
You're right that price cuts would be expected, but in this case they are too fast and too deep. That is the difference in this case, and why Apple reacted to the negative PR in the way they did.


RE: Act First, Think Later
By Vanilla Thunder on 9/6/2007 5:26:16 PM , Rating: 2
quote:
but in this case they are too fast and too deep.


As a consumer, is this even possible? I will NEVER complain about something being too cheap, or the price dropping too fast.

Everybody wants to boo Apple, even when they're trying to put money back in your pockets.

Vanilla


RE: Act First, Think Later
By rsmech on 9/6/2007 5:35:01 PM , Rating: 2
quote:
As a consumer, is this even possible?


Not to the new customers, but to your base customers who are loyal you are telling them that for their loyalty they can pay higher prices. A good company usually give discounts to loyal customers or incentives. As for the $100 credit notice that it also states that they could not have received any rebates or discounts originally. So how many do you think this disqualifies? But that doesn't stop good press.


"If a man really wants to make a million dollars, the best way would be to start his own religion." -- Scientology founder L. Ron. Hubbard

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