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: Note to all Apple haters
By Vanilla Thunder on 9/6/2007 5:33:31 PM , Rating: 4
What early adopters of tech don't get screwed in the long run as far as price? Blu-ray and HD-Dvd are a great example. It happens. It's the price you pay for being the cool kid on the block.


RE: Note to all Apple haters
By rsmech on 9/6/2007 7:22:29 PM , Rating: 3
The difference is that a lot of other early adopters don't care who's tech it is they just want to be first. But with Apple many of these people bought out of loyalty in a brand. Their dissatisfaction is from being taken for that loyalty to a brand, not being first.

RE: Note to all Apple haters
By Kougar on 9/6/2007 8:45:01 PM , Rating: 2
And "being taken" with a almost perfect 50% gross profit margin on the iPhone wasn't a big clue in? It should have been obvious that a price cut would of been happening sooner rather than later with that kind of markup, although this soon is a big surprise I will admit.

RE: Note to all Apple haters
By taleril on 9/7/2007 10:45:13 AM , Rating: 3
I think most peoples' complaint is that the "long run" was a lot shorter than they expected.

No one expects the price of their new, flashy gadget to remain constant forever. I'm more into console games than cutting-edge cell phones, so the hypothetical that pops into my mind is Sony dropping the price of the PS3 by $200 just after Christmas last year. The poor bastards who had camped out and shelled out the big bucks for a PS3 would've been livid.

“And I don't know why [Apple is] acting like it’s superior. I don't even get it. What are they trying to say?” -- Bill Gates on the Mac ads
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