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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: here, here
By xphile on 9/6/2007 8:08:17 PM , Rating: 2
In many cases it will cost Apple nothing at all. The $100 store credit in many instances will have a value to Apple of $50 give or take.

Those affected have a $100 credit. Chances are when they come to use it they may well put it towards another hardware item, especially since they are were all early hardware buyers anyway.

If said item costs at least $200 then Apple lose $50 on the first $100 of the sale (the credit) and then make $50 on the second $100 of the sale. The buyer gets said item at cost ($100) and Apple has lost nothing.

Spend more than $200 total on the usage of the store credit and Apple is back in profit on the transaction.


"My sex life is pretty good" -- Steve Jobs' random musings during the 2010 D8 conference

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