Print 38 comment(s) - last by kthhrrsn.. on Sep 17 at 10:36 AM

Apple's $100 store credit offer for iPhone buyers goes live

When Apple announced that it cut the price of the iPhone by $200 to $399, there were many irate customers yelling at their computer screens. The only people that seemed to be happy regarding the news were the people who wanted an iPhone, but were turned off by the $600 price tag and those that wanted to rub salt in the wounds of the early adopters.

Steve Jobs received tons of angry emails from customers and decided to offer customers $100 of store credit if their iPhone purchase was made outside of the 14-day sale period.

"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," said Jobs on September 6.

Jobs said that more details would be revealed the following week and he stuck to his word.

iPhone customers will first be required to go to Apple's website and enter in their iPhone serial number and phone number. After that time, an SMS text message will be sent to the phone with an access code to redeem the $100 credit. The access code can then be used in combination with your phone number to generate an electronic store credit of $100 to use towards any Apple Store purchase.

Customers must request the credit before November 30, 2007 or forfeit their rights to the $100.

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By Spivonious on 9/14/2007 1:02:10 PM , Rating: 2
So in exchange for spending $200 too much, they get to buy $100 more of Apple stuff? If I was one of the early adopters I'd much rather receive $100 cash.

RE: Horrible
By retrospooty on 9/14/2007 1:09:37 PM , Rating: 5
Sure, but early adopters shouldn't have much to say (although they do) Its not like everybody and their mother didn't know it was WAY overpriced. If someone agrees to buy something at a rediculous price, they are lucky to get anything back. Its not like Apple put a gun to anyone's head and made them but it.

If I offer to sell someone my car for $50,000- (it has an appx $10,000 KBB value) and they agree there is no harm done, just buyer beware.

RE: Horrible
By Hare on 9/14/2007 1:33:39 PM , Rating: 5
Exactly. I was surprised that Apple even offered any "compensation". I've bought tons of stuff that cost an arm and a leg and after a few weeks the price was down 25%. So what? I won't cry because a company lowers prices. I think this is ridiculous.

Obviously the buyers thought that the product offered value more than the original price or otherwise they wouldn't have bought the thing. It's rare that people are crying because a company lowers prices. Suck it up. Everyone knew that the prices would go down once the buzz was over. Happens with every product.

RE: Horrible
By Behlal on 9/14/07, Rating: -1
RE: Horrible
By retrospooty on 9/14/2007 1:46:26 PM , Rating: 2
ugh... you way overcomplicated it. My point was that if the seller sets a price and the buyer agrees there is no foul done, unless the seller is not honest with the product. We all knew the specs and capabilities and if someone paid $600 for it that is on them to justify.

A person cant complain about buying an overpriced $600 phone just because they dropped the price later. At some point they decided it was worth %600 to them. That fact didnt change.

that and... duh. All phones and smartphones drop in price regularly.

RE: Horrible
By xphile on 9/14/2007 11:52:50 PM , Rating: 2
No, he WAY WAY overcomplicated it.

He needed to say the bit where he went:

"Consumers had a reasonable expectation..."

And then just add...

"that this is the most hyped new Apple product in history and if you buy it on day one you are effectively bending over and pleading "Please, please Steve, take me now".

RE: Horrible
By Bioniccrackmonk on 9/14/2007 2:05:02 PM , Rating: 4
In the case of the iPhone, the only price for it was $600. Consumers had a reasonable expectation that the cost of the iPhone was primarily based on the cost of the components plus a sensible profit margin for Apple

Dated uly 5 2007, Each 8GB iPhone Costs $265 to Make, Says Tear-down Report:

That is one sensible profit margin then, sounds like everyone who bought one early either didn't do their research and believed it was a reasonable cost or just didn't care about the price and wanted one. Either way though, both of these types of consumers don't deserve crap in return and should be thankful Apple is willing to give them $100 because so many cried.

Gullability and ignorance is no excuse to cry foul.

RE: Horrible
By retrospooty on 9/14/2007 3:12:08 PM , Rating: 2

" Consumers had a reasonable expectation that the cost of the iPhone was primarily based on the cost of the components plus a sensible profit margin for Apple "

Consumers have nothing to do with that. Companies build their products as cheaply as they can and sell it for as much as people are willing to buy it for. Thats all Apple did.

RE: Horrible
By Chaser on 9/16/2007 1:20:58 AM , Rating: 1
They have the "right" in this fine country to complain all they like. But no one forced them to pay the listed price. I can agree with their frustration but not their expectations.

As far as "how much they can get them to pay" thats the name of the game in a capitalistic economy right? Since you seem up on U.S. values there's another one that I'm sure you "so" know.


RE: Horrible
By kthhrrsn on 9/17/2007 10:36:27 AM , Rating: 1
Huh? Car analogy...what's the difference? New items ALWSYS cost more. Because early adopters are WILLING to pay more to have it first! Prices MUST come down before being widely accepted by the mainstream. And who told you that consumers had a "reasonable expectation" that the iPhone's original price was based on cost + a "sensible" profit margin? Everyone knew that the iPhone, at 600 bucks, was ridiculous priced, but it had the COOL FACTOR going for it. People were WILLING TO PAY to be COOL. The Razr cost $500 when it came out. Now, you can ge them for free!!

Consumers do have a right to complain. As you've pointed out, it's a free country! But I don't sempathize with them. EVERYONE WHO BOUGHT AN IPHONE AT $600 KNEW THAT THE PRICE WOULD COME DOWN. They just didn't expect it to happen so quickly, so now they're mad for not waiting. They should be mad at themselves! If the $200 difference is a big deal, you probably shouldn't have splurged!

If a car with all new technology comes out at $50K then the price drops to $10K overtime, what's the difference?? Same analogy.

RE: Horrible
By A5un on 9/14/2007 1:52:23 PM , Rating: 3
It's just Apple making sure these suckers will keep buying crap from Apple. Even these people may feel cheated sometimes.

RE: Horrible
By Etsp on 9/14/2007 1:48:10 PM , Rating: 2
Ironically... the new Sony Video Walkmans received a price-cut as well, although admittedly a lesser one. The price for the top end 8gB one dropped about $30. This was less than two weeks after they launched in the US. How did I find out about it? Sony sent me an email saying that I would be credited that amount in the next few days. Next day I got an email saying that I will be credited $31.88. This credit is going to my credit card, not their Sony store.

So I am left with this shocking result... Sony actually did something that I am quite happy about, without my intervention!

RE: Horrible
By Gul Westfale on 9/14/2007 2:06:05 PM , Rating: 1
i agree with the original poster.

also, i think the fact that apple was able to cut the price by 200 bucks so quickly show you that they had no confidence in the success of the iphone, otherwise tey wouldn't have priced it with a 200 dollar profit margin at first. so i guess even they realise this thing sucks...

RE: Horrible
By mikeyD95125 on 9/15/2007 3:21:35 AM , Rating: 2
I totally disagree. When they released the iphone at $600 it catered to the people who would run out and buy it "because it is cool" and to all the people who just love apple products. Now they dropped the price to $400 to cater to an even larger market to sell more phones. Notice how people were ok with a $400 XBOX360 but people thought a $600 PS3 was outrageous? Sometime in the future they will probably drop the price even further to cater to an even larger market. Maybe something like $300 for 8GB/$400 for a future 16GB model.

And why does the iPhone suck? My friend just got a 4GB model for free, and I really like it. The speakers are excellent and the screen is F****** beautiful. It has a lot of cool features and there is Wi-Fi all over silicon valley so you don't have to use the slow connection that often. And i'm a person who usually rips on Apple but this is a good product. Most people who say the iPhone sucks seem to have never even touched one.
Sure the hype was annoying but it really is a great gadget if you can afford it and are willing to use a sub-par network (I have used T-mobile and AT&T and they both blew)

RE: Horrible
By retrospooty on 9/15/2007 2:07:22 PM , Rating: 1
Yup... I agree.

I think of it like this. Apple sold appx 750,000 at this high price point. Now they lowered it to what it should have been released at, not counting on the fanboys and gadget whores with money to burn. 750,000 x $200 each = an extra $150 million dollars pure profit on early adopters.

"A politician stumbles over himself... Then they pick it out. They edit it. He runs the clip, and then he makes a funny face, and the whole audience has a Pavlovian response." -- Joe Scarborough on John Stewart over Jim Cramer
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