backtop


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.



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

One more thing
By zinfamous on 9/6/2007 5:51:54 PM , Rating: 2
this just goes to show how ridiculously overpriced the Iphone was at launch, considering the tech included in the device, if they can "afford" such a drastic price drop so soon afterwards.

I'm thinking the typical Mac fans wouldn't understand what really goes into making an Iphone, and how obsolete they are in terms of functionality compared to competing, and cheaper, devices. This isn't a slam on Mac devices (the Iphone is anice little gadget), per say, but more of a salute to the "geniuses" in their marketing department for targeting so well their core user-base and taking them for a ride.

I believe Sony is still losing some $100-200 per sale of the PS3, no?




RE: One more thing
By Scott66 on 9/6/2007 8:09:22 PM , Rating: 2
True Sony still is losing some money on the PS3 but they make much more money on every game sold. I don't think Apple makes similar markup on AT&T's cell contract.


"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997

Related Articles













botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki