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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 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.


"Can anyone tell me what MobileMe is supposed to do?... So why the f*** doesn't it do that?" -- Steve Jobs

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