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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 ninjit on 9/6/2007 8:23:59 PM , Rating: 2
I really doubt this scenario didn't occur to anyone at Apple - but I'm guess they went ahead anyway, and decided to wait on any wrath-mitigating rebates till after the fact, just to see if they could get away with it:

If there were only a few voices screaming hellfire over buying the iPhone early for $200 more, they wouldn't bother with any kinda refund - and live happily with the extra profit they gleaned in those 2 months.

If there was universal outcry, they implement the credit/refund/rebate program (which I'm sure they had in place as a contingency already), and "save the day" (at least as far as their own asses are concerned).

And in the spirit of full disclosure, I'm not an Apple lover or hater, but I really really like Mac OS X and their laptops (Mac Pro is still a little pricey IMHO); I like the iPhone, but I thought it was too expensive (still is) and missing key features (such as SD memory expansion, GPS, and 3G data). I can appreciate the iPod for what it did to the MP3 market, and the polish it has as a product (same can be said of all of Apple's offerings), but can't see myself buying one anytime soon because I'm still happy with my 6 year old Creative MuVo TX-FM... and well honestly because EVERYONE has an iPod these days, it turns me off a bit too.

Given the polarizing ability of companies like Apple, and the obvious camps of people who post here on the subject: the Apply loyalists (believers) and the Apple haters (the atheists) - I'd like to start a new group:

the Apple-Agnostics!
Our doctrine shall be to approach every new product announcement with mild wonder, but also reasonable skepticism. Avoiding the zealous belief that everything Apple touches automatically (and unquestionably) turns to gold, while simultaneously sidestepping the trap of assuming anything Mac is evil incarnate and simply exists to rob you of your hard-earned money.


"If you can find a PS3 anywhere in North America that's been on shelves for more than five minutes, I'll give you 1,200 bucks for it." -- SCEA President Jack Tretton

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