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sketchy
Sep 6, 2007, 02:07 PM
To all iPhone customers:

I have received hundreds of emails from iPhone customers who are upset about Apple dropping the price of iPhone by $200 two months after it went on sale. After reading every one of these emails, I have some 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. iPhone is a breakthrough product, and we have the chance to 'go for it' this holiday season. iPhone is so far ahead of the competition, and now it will be affordable by even more customers. 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.

Second, being in technology for 30+ years I can attest to the fact that the technology road is bumpy. There is always change and improvement, and there is always someone who bought a product before a particular cutoff date and misses the new price or the new operating system or the new whatever. This is life in the technology lane. If you always wait for the next price cut or to buy the new improved model, you'll never buy any technology product because there is always something better and less expensive on the horizon. The good news is that if you buy products from companies that support them well, like Apple tries to do, you will receive years of useful and satisfying service from them even as newer models are introduced.

Third, even though we are making the right decision to lower the price of iPhone, and even though the technology road is bumpy, we need to do a better job taking care of our early iPhone customers as we aggressively go after new ones with a lower price. Our early customers trusted us, and we must live up to that trust with our actions in moments like these.

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. Details are still being worked out and will be posted on Apple's website next week. Stay tuned.

We want to do the right thing for our valued iPhone customers. We apologize for disappointing some of you, and we are doing our best to live up to your high expectations of Apple.

Steve Jobs
Apple CEO


http://www.apple.com/hotnews/openiphoneletter/



Mxsix
Sep 6, 2007, 02:10 PM
Ok, $100 store credit isn't perfect, but I'll take it!

BTW: I stood in line for the iPhone so the 10 day limit for me is long gone ;)

mets1125
Sep 6, 2007, 02:10 PM
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. Details are still being worked out and will be posted on Apple's website next week. Stay tuned.


Great job Apple!!!!:apple:

vega07
Sep 6, 2007, 02:10 PM
you guys are damn lucky. I hope that those who already received compensation don't abuse this.

technicolor
Sep 6, 2007, 02:11 PM
YAY!:apple::D:D:D

:p TO ALL THE HATERS who tried to make us feel bad yesterday

iLunar
Sep 6, 2007, 02:12 PM
I agree. Kudos to Apple for caring about their Customers. :)

riverfreak
Sep 6, 2007, 02:13 PM
http://www.apple.com/hotnews/openiphoneletter/

Wow. That's sheer professionalism. Totally unnecessary. Very impressive. The Jobs done good.

sushi
Sep 6, 2007, 02:14 PM
Looks like a reasonable response.

Kudos to Apple.

drater
Sep 6, 2007, 02:14 PM
good job Jobs

SthrnCmfrtr
Sep 6, 2007, 02:14 PM
That makes me happier than I thought it would. Thanks, Steve.

PlaceofDis
Sep 6, 2007, 02:15 PM
Wow. That's sheer professionalism. Totally unnecessary. Very impressive. The Jobs done good.

agreed.
hell i would say even a $50 gift cert would've been good. but this is certainly a compromise and i'm glad that Jobs realizes just how important the early adaptors and 'fan base' are to making Apple successful.

willeekinz
Sep 6, 2007, 02:16 PM
Thanks Steve! You The Man

atszyman
Sep 6, 2007, 02:16 PM
you guys are damn lucky. I hope that those who already received compensation don't abuse this.

Since it was all about fairness I'm sure none of the most vocal critics of the price cut will double dip and get $200 back somehow + the $100 certificate. Tracking at&t and Apple concessions should be easy the Credit card price matches might be more difficult.

Queso
Sep 6, 2007, 02:17 PM
Nice to see that Apple are listening. I take it this will cover the purchase of Leopard for all Mac-using iPhone owners.

Windows users can buy an external hard disk or something :D

jackc
Sep 6, 2007, 02:17 PM
Hopefully this will end the whining and the opposition to price decreases. Now you only had to pay $100 to be the coolest kid on the block for a while.

CmdrLaForge
Sep 6, 2007, 02:18 PM
Thats great ! I really do think thats the right thing to do. Even so - not really necessary. As Steve is writing - technology gets cheaper all the time - all the time ! I was burnt by buying at the wrong time as well in the past. That happens. Its bad but as Steve says - you cannot wait forever.

But still - great job Steve!

Cheers
LaForge

Doctor Q
Sep 6, 2007, 02:18 PM
Has Steve admitted he reads email from customers before?

Mgkwho
Sep 6, 2007, 02:18 PM
WOW

That's a little overkill, don't you think? Jobs really wants people to buy iPhones.

Good thing they're sitting on all that money. They are a nice company, they really are :D.

-=|Mgkwho

billyripkin
Sep 6, 2007, 02:19 PM
When I first heard of the price drop I just thought I was out of luck. Then I heard of people getting money back for purchases as far back as launch day which is when I bought 2. The fact that some were getting refunds and others were not was messed up. I NEVER EXPECTED anything but this gesture confirms my faith that Apple loves there loyal fan base. Had they done nothing I would still buy Apple so thank you Steve.

jackc
Sep 6, 2007, 02:19 PM
Has Steve admitted he reads email from customers before?

That's short for "other people read emails addressed to me"

dalvin200
Sep 6, 2007, 02:19 PM
now that is what you call an excellent response - nice one Apple!!

:apple: all the way baby!

phil83
Sep 6, 2007, 02:19 PM
You got to be freaking kidding me. This is unheard of in the business world, this one tells you how much they must be making on the iphones, and two how many people were really so upset about this.

slffl
Sep 6, 2007, 02:20 PM
If this is true, then I for one will be an Apple fan once again!

powerbook911
Sep 6, 2007, 02:21 PM
Thanks Steve! Apple rocks.

I just hope those whiners who got refunds already don't get this too.

kimb
Sep 6, 2007, 02:21 PM
This is amazing. I always knew why i was a loayal Apple consumer! :)

Thanks Steve Jobs!

iKwick7
Sep 6, 2007, 02:21 PM
http://www.apple.com/hotnews/openiphoneletter/

Solid!

I called Apple this morning about the possibility of credit, response was the 14 day window. No worries, I figured I'd just give it a try.

But this.... awesome (provided it does apply to ALL iPhone purchasers). If it's something like $100 of $300 or above, I'm cool with that- looks like I'll either get an Apple TV or give it to my parents and have them finally fo Mac.

Kudos, Steve, kudos.

dr_lha
Sep 6, 2007, 02:21 PM
I wasn't that bothered by the price drop (its happened to me plenty of times before) so have to give kudos for Apple to doing this. I'm very happy, and will be putting that $100 towards a 80Gb iPod Classic.

dagomike
Sep 6, 2007, 02:21 PM
Works for me.

Really, it's an easy move. They probably get 25-50% markup on products, even more if you buy software, and odds are you'll spend more than $100. Pretty cheap for a little good will.

rotlex
Sep 6, 2007, 02:22 PM
That is simply awesome. Even though I have yet to buy an iPhone, eh, don't want to "switch" to ATT, this is a BIG reason I'm such an Apple fan. They had to do NOTHING for anyone and could have simply said, yep, that's the price you pay for being an early adopter.

Kudos to everyone at Apple. Now, about getting one of these things on Sprint, LOL.

mozmac
Sep 6, 2007, 02:22 PM
That's pretty cool of him to write. $100 isn't $200, but it's still nice of them to do that. They could easily say, "Screw you."

zioxide
Sep 6, 2007, 02:23 PM
Well you guys lucked out.


Second, being in technology for 30+ years I can attest to the fact that the technology road is bumpy. There is always change and improvement, and there is always someone who bought a product before a particular cutoff date and misses the new price or the new operating system or the new whatever. This is life in the technology lane. If you always wait for the next price cut or to buy the new improved model, you'll never buy any technology product because there is always something better and less expensive on the horizon. The good news is that if you buy products from companies that support them well, like Apple tries to do, you will receive years of useful and satisfying service from them even as newer models are introduced.

That should be in the header of the MR forums for everyone who asks about "Should I buy this now or not?"

chr1s60
Sep 6, 2007, 02:24 PM
It isn't $200, but at the same time they didn't need to do anything. Think about it for a minute. Would Microsoft or Motorola do anything like this? Probably not. I will accept $100 discount.

billyripkin
Sep 6, 2007, 02:24 PM
Anyone notice how Apple stock just went up for the first time today? Just happened since the letter came out.

bartelby
Sep 6, 2007, 02:24 PM
Maybe all the moaners can now shut up and I can read something else on this forum.

greenBabe
Sep 6, 2007, 02:24 PM
Thank you Steve ... that really is above and beyond. Apple once again shows it's true colors.

Daveway
Sep 6, 2007, 02:25 PM
Mark this as "The Gospel according to Steve Jobs" in case this ever happens again we can reference "Gospel" to stop all the b*tching.

dejo
Sep 6, 2007, 02:25 PM
If this is true...
And you doubt it why? :confused:

macnerd77
Sep 6, 2007, 02:25 PM
Being a Macnerd for quite sometime now. I always buy the newest and greatest from apple infact i just bought a brand new imac mid 2007 the day it came out. When i heard about the price drop i was very offened that apple would treat us loyal customers this way. I am very thankful for the Credit they are giving us.
Once

Stella
Sep 6, 2007, 02:26 PM
I hope this will stop the whinning...

... your lucky Apple did this in the first place!

whawhat
Sep 6, 2007, 02:26 PM
very good news. apple would be stupid not to do this - when our iphone's battery dies in about a year, we will need to get another phone and apple wants to make sure that we buy another iphone.

plus, why mess with your most loyal customers - the ones that actually camp out for days to buy your products.

thank you for coming to your senses mr. jobs!!

ibwb
Sep 6, 2007, 02:26 PM
Heh. Pay close attention to how Apple builds hype.

Start at $600 -- get the early adopters in, build a reputation as a premium product.
Cut to $400 -- early adopters go nuts, which is exactly as intended -- everyone and his mother finds out about the price drop.
Once the "price drop furor" story hits CNN, Fox News, and absolutely everywhere else, throw the early adopters $100 in store credit. Which costs about nothing, since they're most likely to buy accessories with that kind of amount, and accessories are all profit.

End result: everyone hears about the price drop without a dime in ad spending, and everybody loves Apple. What a clever script.

MacNut
Sep 6, 2007, 02:26 PM
Maybe all the moaners can now shut up and I can read something else on this forum.Im sure there is plenty more to moan about.:p

Am I the only one that doesn't believe Steve when he says he reads every e-mail.:rolleyes:

MattyBwrx
Sep 6, 2007, 02:26 PM
Nice just in time too I need new wacom tablet :D

Peace
Sep 6, 2007, 02:26 PM
This whole thing is stupid.

Jobs is right when he says technology goes down in price over time.

Look at other things like a new digital camera that sold for $999 on day one.I've seen them go down in price a lot over the following 2 months.
Same with the iPhone.
I bought one on June 29th knowing they would be cheaper by Christmas.

Some people won't be happy until they get something for free.

aperture01
Sep 6, 2007, 02:27 PM
Thank god because i'm was going to flip the hell out on Steve. I guess sending those e-mails did something.

EvanLugh
Sep 6, 2007, 02:27 PM
He could have said something about iPhone UK jeez. :(

kaeckisthename
Sep 6, 2007, 02:27 PM
That is truly admirable of Apple, I chalked it up as a loss. I was kinda upset, but the iPhone is so badass it really didn't matter. But $100 gift card to Apple is awesome, I'm going to buy my mom a new iPod nano;)

Stella
Sep 6, 2007, 02:27 PM
It isn't $200, but at the same time they didn't need to do anything. Think about it for a minute. Would Microsoft or Motorola do anything like this? Probably not. I will accept $100 discount.

yes, actually, microsoft did - they gave european customers a couple of free games, plus a controller after the price dropped on the xbox ( Thats worth more than a $100 too!) ... as a few people said on the "8GB iPhone Price Drop, 4GB iPhone Discontinued", here:
http://www.macrumors.com/2007/09/05/8gb-iphone-price-drop-4gb-iphone-discontinued/

lmcintyre
Sep 6, 2007, 02:27 PM
.

kainjow
Sep 6, 2007, 02:28 PM
What do you think will be the percent of people who actually spend this $100 credit?

And what do you think will be the percent of people who overspend the $100 credit and actually give Apple more money?

So I don't think they will "lose" out very much financially. If anything, they'll just have guaranteed the early adopters Apple customers for life. And each of these customers will then go and tell 10 more people of Apple's generosity.

Apple is brilliant.

ortuno2k
Sep 6, 2007, 02:28 PM
All I've got to say is "WOW, I'm speechless." This totally came unexpected.
Must really say how many pissed off people there are/were out there, and how much Apple cares to keep everyone happy.
I'm not an iPhone owner, but I'm happy for those who are early adopters and paid the overhead premium - good job Mr. Jobs, you still have my respect. ;)

dejo
Sep 6, 2007, 02:28 PM
Anyone notice how Apple stock just went up for the first time today? Just happened since the letter came out.
Actually, AAPL (http://new.quote.com/stocks/overview.action?CPID=ILC-9V53Y2584954&s=AAPL) has been steadily climbing all day since about just before 10am.

macridah
Sep 6, 2007, 02:29 PM
ok steve, I'm not that mad at you anymore.

scharf10
Sep 6, 2007, 02:29 PM
I wonder if everybody will get a letter through the post or something, because it would be great if you had no idea about the new pricedrop and then all of a sudden you're gifted $100 - great!

Consultant
Sep 6, 2007, 02:30 PM
It's really just a 10% drop at $200 off if you consider the contract of $60 per month. (Now it's a 5% drop).

However, people have to remember that the iPhone is a BETTER DEAL and is VASTLY SUPERIOR than other wannabe devices that are required to have $80 per month plan ($40 data + $40 voice), even at the old price. The new prices are killer. With the new price, there will be many more people canceling their contract in order to get the iPhone.

c3str
Sep 6, 2007, 02:30 PM
Well, Steve Jobs and Apple, I've got to hand it to you:
I've never before felt so happy to have paid $100 too much for something.:D

I'm satisfied. Happy, even.

Rocketman
Sep 6, 2007, 02:30 PM
This $100 rebate to all iPhone owners in the wake of an early and unexpected $200 retail price cut amounts to a "consumer buyback" as opposed to a dividend or stock buyback. It's about $100,000,000 or so.

The price cut is to attract those 10 million expected customers.

The justification could easily include the fact sales ramped a bit faster than expected so breakeven occurred sooner, and double breakeven sooner as well. This price cut and rebate makes sense.

Early buyers assumed risk with Apple and Apple is "repricing risk" to the benefit of consumers.

This reminds us of the "added value after delivery" issue and be reminded all iPhone sales are distributed over 24 months, so future earnings are locked to grow.

:)

What are the top 3 things you should buy for $100?
1. A Shuffle for a friend and dinner.
2. A component video cable
3. iTunes gift certificate
4. $100 down on an iPhone for a family member.

Rocketman

ChandlerXJ
Sep 6, 2007, 02:30 PM
Steve Jobs is an utter genious.

Give the hardcore fanboys 100 bucks...

He just turned his fatal flaw into the absolute BEST marketing scheme of all time.

Do you realize what he just did!?!?!!!?

This was no doubt planned, NO DOUBT!!

rtdgoldfish
Sep 6, 2007, 02:30 PM
Thank you Steve! I was really hoping they would come through.

Blue Velvet
Sep 6, 2007, 02:30 PM
I would personally like to thank Steve Jobs and the marketing team at Apple for making the staff's lives — all mods, editors and admins at MacRumors — a little easier by forestalling the growing litany of heated complaints. ;)

kaeckisthename
Sep 6, 2007, 02:30 PM
How are they gonna distribute the cards? Will you have to sign up or what?

metanoia
Sep 6, 2007, 02:31 PM
(RDF)Steve Jobs rocks! I love Apple!(/RDF)

Wait, I'm still out $100... :) but still... this will go towards the macbook I want.

dubels
Sep 6, 2007, 02:31 PM
All I want to say is if we stop complaining this wouldn't of happened. So to ya'll that told us to stop whinning :p
I am just going to save it up for Leopard.

slffl
Sep 6, 2007, 02:31 PM
Maybe all the moaners can now shut up and I can read something else on this forum.

Whiners whining about whiners. Awesome.

christall109
Sep 6, 2007, 02:32 PM
lucky..lucky...lucky.....

You guys should be VERY VERY thankfull

Mike Teezie
Sep 6, 2007, 02:32 PM
Wow, that's amazing. Wonder what the stock will do?

I think that a good deal of people will use their $100 credit to get something more expensive, like, hmmmm....maybe a shiny new iPod or an AppleTV.

So maybe Apple will end up breaking even, so to speak.

diamond.g
Sep 6, 2007, 02:32 PM
This is why we like :apple:! Good job Mr. Jobs! This will handily pay for my 10.5 family pack :D.

calculus
Sep 6, 2007, 02:32 PM
I would personally like to thank Steve Jobs and the marketing team at Apple for making the staff's lives — all mods, editors and admins at MacRumors — a little easier by forestalling the growing litany of heated complaints. ;)

Now all you have to do is keep your eye on the number of threads started on the refund...

mac17
Sep 6, 2007, 02:33 PM
Wow thats amazing of them!
ps:to all those people who told all us complainers to shut up,apparently we were right, and apple thought so too and they delivered.:D:apple:

MacGirl1985
Sep 6, 2007, 02:33 PM
Has Steve admitted he reads email from customers before?

I think he reads this forum. 1500 replies to yesterday's thread about the $200 price drop.

He is a class act. Going above expectations again. That's why we are such fans. Love you long time, steve! :)

angrygolfer
Sep 6, 2007, 02:33 PM
My right foot is broken. I was planning on breaking my left foot in Steve Jobs' butt, but i guess I won't now. That was a move that actually shows they do care about their reputation. Microsoft wouldn't have even addressed the issue.

iPhonePlaya
Sep 6, 2007, 02:33 PM
Yesssss Yesssss Yesssss
To All Those People Who Called Us Whiners

I LOVE YOU STEVE JOBS THANK YOU SO MUCH

BigPrince
Sep 6, 2007, 02:33 PM
good resolution

SZhama
Sep 6, 2007, 02:33 PM
When you think about...Steve and corp knew people would get pissed about this. They jack up the price $200 more, when it hits the fan they offer a $100 refund at the Apple store and by the way they still make a $100+ off the initial sale and coax you into buying a new iPod...Bam they sell tons more iPods for Xmas.

Effing brilliant!

Looking Like A Saint walking away with a Fist Full of Cash...

MacGirl1985
Sep 6, 2007, 02:33 PM
What do you think will be the percent of people who actually spend this $100 credit?

And what do you think will be the percent of people who overspend the $100 credit and actually give Apple more money?

So I don't think they will "lose" out very much financially. If anything, they'll just have guaranteed the early adopters Apple customers for life. And each of these customers will then go and tell 10 more people of Apple's generosity.

Apple is brilliant.

lighten up, francis.

Aperture
Sep 6, 2007, 02:34 PM
FINALLY! This EXACTLY what I wanted and what I thought was fair. A $100 gift card.

& I was one who emailed sjobs@apple.com

:D:D

SPUY767
Sep 6, 2007, 02:34 PM
Hellooooooo apple wireless keyboard.

soosy
Sep 6, 2007, 02:34 PM
Bravo Apple!

NewtypeCJ
Sep 6, 2007, 02:34 PM
I'll take it. But... I bought my iPhone through AT&T and I don't think I have the receipt anymore.

KittyToy
Sep 6, 2007, 02:34 PM
The iPhone just lost it's cool factor, I Live in FL and so far the only people I seen with iphone's are the ones that sold it to me and every sales man at the car dealership.......... now every 12 year old and they granny gonna have one....hmmm , :D

Peace
Sep 6, 2007, 02:35 PM
Steve Jobs is an utter genious.

Give the hardcore fanboys 100 bucks...

He just turned his fatal flaw into the absolute BEST marketing scheme of all time.

Do you realize what he just did!?!?!!!?

This was no doubt planned, NO DOUBT!!

This very well could have been the plan from the get go..

I'm gonna use it to go towards a new one for my brother.

AirmanPika
Sep 6, 2007, 02:35 PM
I wasn't mad at apple, a little hurt but not mad. I'll take it but I can't help but think this was the plan anyway. It's only $100 so apple will still make a nice profit off most people who use this. Create a s*itstorm for attention and then "please" the loyal fans who were hurt by giving them an excuse to spend more money. I for one will wait a few months to use my $100 discount off any apple product (since thats what this really is). Who knows, maybe an iPod price drop is on the way.

drnen
Sep 6, 2007, 02:35 PM
oooooooh alright Steve... I love you again :P

the1andonlytip
Sep 6, 2007, 02:35 PM
Like all of us early iphone customers I was bummed about the price drop, but its things like this that makes me realize why im going to always stick behind apple!:apple::apple::apple:

Blue Velvet
Sep 6, 2007, 02:35 PM
Now all you have to do is keep your eye on the number of threads started on the refund...

On the case... that is, case of wine by this stage. ;)

PlaceofDis
Sep 6, 2007, 02:36 PM
What do you think will be the percent of people who actually spend this $100 credit?

And what do you think will be the percent of people who overspend the $100 credit and actually give Apple more money?

So I don't think they will "lose" out very much financially. If anything, they'll just have guaranteed the early adopters Apple customers for life. And each of these customers will then go and tell 10 more people of Apple's generosity.

Apple is brilliant.

exactly. gift certificates will go unused. unclaimed. or overspent more likely than not. and thats by shopping at their store. so that means more movement, means more likely to return means more likely to sell more.

and the marketing and good will press will be astounding.

min_t
Sep 6, 2007, 02:37 PM
Thanks Steve! Apple rocks.

I just hope those whiners who got refunds already don't get this too.

They are not supposed to according to the letter. But there will be those who will try to stick it to Apple twice.

This is awesome. Now Leopard will only cost me $30.

sishaw
Sep 6, 2007, 02:37 PM
What do you think will be the percent of people who actually spend this $100 credit?

And what do you think will be the percent of people who overspend the $100 credit and actually give Apple more money?

So I don't think they will "lose" out very much financially. If anything, they'll just have guaranteed the early adopters Apple customers for life. And each of these customers will then go and tell 10 more people of Apple's generosity.

Apple is brilliant.

The fact that Apple's generosity in this instance may also have an aspect that works towards Apple's self-interest does not detract from an extremely customer-service oriented gesture. Apple does have fiduciary duties to its shareholders as well as its customers.

There's no right or entitlement to be free from price drops for a certain length of time. Apple could have done nothing in perfectly good corporate conscience.

I was initially incredulous that so many early purchasers were complaining. I am absolutely astounded that anyone can continue to complain.

JCT
Sep 6, 2007, 02:38 PM
That's a classy move. I had figured they would do *something* to quell the uproar among their loyal customers.

I also received the Aperture rebate and I was (pleasantly) shocked at Apple's response -- full acknowledgment and appreciation for the fact that I had been a somewhat inadvertent beta tester.

Moves like this also cement Apple's rep as a company that "listens" -- a nice touch these days.

JT

SimonTheSoundMa
Sep 6, 2007, 02:38 PM
Reminds me of Fujitsu Plasmavision. Low end model of their plasma fails after 2.5 years, however as prices have dropped and to keep the customer happy, they replace it no questions asked with the new top of the range model which actually cost £200 more than the low end model did a few years back. New plasma arrives the next morning and Fujitsu didn't even look at the faulty one.

dizastor
Sep 6, 2007, 02:39 PM
"technology prices change all the time"

so, why are the Cinema Displays overpriced? Oh, right... not the same audience. :D

roland.g
Sep 6, 2007, 02:39 PM
Saving face. Nice move. I can live with that. It guarantees the money is spent on Apple merchandise which I am always willing to do, and appeases the outrage as a $100 price drop would not have brought out anything near the level of ire that we saw the past 2 days. Not to mention Apple doesn't lose x times $100 as they have a retail markup on everything and you will most like spend more than $100 so they get a sale out of it.

Me personally, I will use it for a Apple BT headset or new iMac wireless BT Keyboard when those finally arrive.

Or maybe get a new shuffle that I can then order a set of those Monster headphones that it snaps into.

sabr
Sep 6, 2007, 02:40 PM
thank you, Apple !

i'm very happy that they compromised and met the fanboys in the middle.

padmasana
Sep 6, 2007, 02:40 PM
Thank goodness. This restores my faith in Apple.
Good move, Steve!

MovieCutter
Sep 6, 2007, 02:40 PM
Thank god because i'm was going to flip the hell out on Steve.

I'm sure he'd be terrified. :rolleyes:

chr1s60
Sep 6, 2007, 02:40 PM
yes, actually, microsoft did - they gave european customers a couple of free games, plus a controller after the price dropped on the xbox ( Thats worth more than a $100 too!) ... as a few people said on the "8GB iPhone Price Drop, 4GB iPhone Discontinued", here:
http://www.macrumors.com/2007/09/05/8gb-iphone-price-drop-4gb-iphone-discontinued/

I was unaware of that. Partly because it took place with Europe. The only difference I see is that Microsoft gave products instead of allowing the user to pick what they wanted. Either way, I stand corrected, but still think very few companies would do something like this.

Popeye206
Sep 6, 2007, 02:41 PM
Just in case Steve Jobs is reading... thank you! I really didn't expect anything, but after reading all the threads I thought to myself that Apple should offer a store credit to us early adoptors. And now... WOW! Thank you!

I've been a loyal Apple fan since 1985... and Steve and the crew at Apple have just reafirmed why I love Apple and my Macs so much.

Hummm... now what goodies to buy? :-)

joeconvert
Sep 6, 2007, 02:42 PM
Actually, AAPL (http://new.quote.com/stocks/overview.action?CPID=ILC-9V53Y2584954&s=AAPL) has been steadily climbing all day since about just before 10am.

Negative

Bonte
Sep 6, 2007, 02:42 PM
I'll take it. But... I bought my iPhone through AT&T and I don't think I have the receipt anymore.

Don't need to, all iPhones are registered and activated via a Apple account and thats where your $100 store credit will be.

Dalriada
Sep 6, 2007, 02:42 PM
That was one heck of a quick decision and I'm very impressed. I hope this will be taken in good faith and not used against Apple in the future on forthcoming product upgrades.

Nice one Steve.

Dal

DTphonehome
Sep 6, 2007, 02:42 PM
Wow, that's amazing. Wonder what the stock will do?


They have stock quotes on the internet now.

Brilliant move on Apple's part. This money goes right back into Apple's pocket, and people are likely going to buy things that cost more than $100, making Apple even MORE money.

0tim0
Sep 6, 2007, 02:42 PM
Just think, if they sold a million iPhones, then this is a

$100,000,000 Apology

That's a lot of zeros -- I guess he really is sorry ;)

--t

.vin.
Sep 6, 2007, 02:42 PM
There's the Apple I know and love... After yesterday, I thought I'd lost you buddy =P

Thanks, Steve.

nickane
Sep 6, 2007, 02:43 PM
You got to be freaking kidding me. This is unheard of in the business world, this one tells you how much they must be making on the iphones, and two how many people were really so upset about this.

It's not unheard of in the business world. It's unheard of in the phone world. I've paid 50 quid for a phone that was soon available free with 6 months half price line rental and got diddly squat. But I've also bought an N64 on release day and gotten a free game when they reduced the price AUS$100, (I think it was £100 in the UK so ppl got a game and a controller which wasn't as good a deal). Microsoft did something similar with the xbox (maybe 2 games and a controller - the pricedrop was huge, no one was willing to pay that much for a console back then). However, I've since heard the original xbox had much better components than the price-dropped versions. But consoles are often loss-leaders anyways. Bottom line: the phone industry does not need to do you any favours, cos everyone needs a phone, but apple is trying to muscle marketshare in much the same way that console makers do. Apple's not listening any more than any other company but their continued expansion leaves them heavily reliant upon good word-of-mouth and repeat business, just like console makers don't make their money off early adopters, but rather off of the people who continually buy games across the life of the console (which in both cases, are likely to be early adopters with the most cash, and in apple's case, also the ppl whose contracts will run out sooner).

Niceness doesn't come into it. It's a brilliantly calculated move. $100 store credit doesn't cost apple $100, but don't think they're giving it to ppl cos they deserve it, they're giving it to their customers because they need them and they knew too many were annoyed for Apple to get away with it (like they did when the ipod photo suddenly became £20 more expensive than a monochrome 4G having been hundreds of dollars more beforehand). We already knew they were making more than $200 off the phones outright anyways so obviously this money's not as much to them as it is to the annoyed masses. Besides, the real money's in the contract subsidies.

And, to be fair, flash prices are still falling rapidly and these phones had their prices fixed 9 months before they came out, so its not as clearcut as it looks.

min_t
Sep 6, 2007, 02:43 PM
very good news. apple would be stupid not to do this - when our iphone's battery dies in about a year, we will need to get another phone and apple wants to make sure that we buy another iphone.

plus, why mess with your most loyal customers - the ones that actually camp out for days to buy your products.

thank you for coming to your senses mr. jobs!!

Have some faith. My nano is going on 2 years and still with the original battery. My powerbook from 2003 is still working with the original battery. I think my hd will crap out before the battery.

shk718
Sep 6, 2007, 02:43 PM
BRAVO Apple!!!


This among many other reasons is why i switched to a Mac two weeks ago. Has Microsoft (or any other company for that matter) done anything like this?

P.S. I LOVE my iMac - probably the best computer I've ever owned!!!

GeekLawyer
Sep 6, 2007, 02:43 PM
Now that's the Apple I know and love. I <3 :apple:

The General
Sep 6, 2007, 02:44 PM
Sweet! Guess I'll be getting that 160GB iPod Classic after all! :):):):)

We all own the Jobsmeister thanks and an apology. :p

dizastor
Sep 6, 2007, 02:44 PM
$99 Fat Black Nano™ for me, thanks.

G4R2
Sep 6, 2007, 02:44 PM
I applaud Apple for this. I wasn't expecting any sort of consideration for being an early adopter. It's part of the reality. That Apple is doing this demonstrates that no one has misplaced any faith in this company. Not only do they make superb products but they also care about their customers.

Thataboy
Sep 6, 2007, 02:44 PM
I don't remember any time ANY company has done anything like this. :eek: Apple would have been completely in the right to say "we know it sucks, but we can't do anything for you." And they turn around and do this.

This should tell people what kind of company Apple is. I have to say, it is a ridiculously genius move -- all the non-Mac iPhone buyers will now have a $100 free money to go BACK to the Apple Store and be tempted to switch over.

At the very least, it's a free year of .Mac, an almost-free bluetooth headset, a free iPod shuffle, an almost-free iPod nano, etc.

fastbite
Sep 6, 2007, 02:45 PM
Brilliant move, now he's gonna get all the early adopters spending OVER the 100 on the Apple store, buying new iPod nanos or whatever, what the heck as we are here let's get a shiny new Mac -- and he looks cool too. You know what? I like the guy.

drnen
Sep 6, 2007, 02:45 PM
This makes the leopard update pretty transparent for me. It will cost what- 20 bucks or so now i guess? Not too shabby :) I'm sure the adoption rate was going to be high and quick anyway but this will possibly even speed that up?

imwoblin
Sep 6, 2007, 02:46 PM
I am a loyal Apple customer and purchased an iPhone on launch day. Early this morning I went to the local Apple store (Mission Viejo CA.) where I purchased my iPhone. I saw the manager and he recognised me because of many prior purchases. He asked me how things were going and I acknowledged that I felt like Apple kicked me in the nuts after they dropped the price so soon. Without even blinking an eye, he pulled out his scanner, and credited my Visa $215 and change (the difference in price) and handed me the receipt. He apologised and said because of customers like me, Apple is where it is today. This is what makes Apple such a special company and keeps me coming back to buy more stuff. Bravo Apple!

kasei
Sep 6, 2007, 02:46 PM
Wow... this is unheard of. So what happens when the 16 gig iPhone comes out? Are people going to freak, again?

cliffjumper68
Sep 6, 2007, 02:47 PM
That's short for "other people read emails addressed to me"

Not true, He responded to mine when I switched to apple. It was short and to the point but definitely in context to my message. If says he read them, then I trust he did. He takes written responses seriously.

SeanM
Sep 6, 2007, 02:47 PM
Excellent, this makes me feel a lot better about my iPhone purchase. Thank you Apple, I really didn't expect them to do something like this.

Now I'm not sure whether to buy an iPod nano, an iPod classic, an Airport Extreme base station, or just wait Leopard. Heh.

HyperZboy
Sep 6, 2007, 02:48 PM
Thank you Steve Jobs, I have new-found faith in you & Apple.

It was just simply the right thing to do.
Since I was expecting a $100 price reduction anyway, this is the best offer I expected and I'm now a happy iPhone customer again who'd be willing to use that credit towards an Ipod Touch or Mac OS X Leopard.

By the way, no thanks to the worthless MacWorld editors & other Apple fanboys who got me banned from complaining anymore today on MacWorld when I suggested that they were following Apple's lead in deleting complaints on MacWorld (Apple was deleting complaints on Apple Discussions at the same time).

So it's fitting that MacWorld was the VERY LAST to have this info!

MacWorld got BEAT by CNBC to an Apple story!

PS: I would have posted it there, but oh well.
A MacWorld Editor did just post MacWorld's explanation for why the price drop is right and why Apple doesn't owe us anything though. HAha!

What a worthless site and boy did they get egg on their face!

Thanks Macrumors!

thestaton
Sep 6, 2007, 02:48 PM
haha, this is setting you up for a convenient 100 dollar black leather iPhone case :)

nismo
Sep 6, 2007, 02:48 PM
glad to see you guys will be gettin some money back!

Darkroom
Sep 6, 2007, 02:48 PM
i love these public letters from Apple... it's great that apple is giving back early adopters $100, but i really doubt steve was sitting on his ass for hours yesterday reading hundreds of hate emails... you know, billionaires usually have better things to do... but still, it's a nice move on apple's part...

Sobe
Sep 6, 2007, 02:48 PM
Just think, if they sold a million iPhones, then this is a

$100,000,000 Apology

That's a lot of zeros -- I guess he really is sorry ;)

--t

Which is a lot less than a $200,000,000 loss from rebating everyone $200.

It's really a great move because seeing the price drop so quickly is enough to make people hold off on their next apple purchase. Tossing $100 of Apple credit to that same audience all but ensures those purchase will go through.

Like me for example -- I have been eyeing a new laptop for a few months. When the $200 price cut hit, I was feeling a little miffed. Not because I bought early, but because of the way some got rebates and some didn't. If apple hadn't done anything I might not have purchased my next computer from them. Now I'm feeling much more forgiving -- and what's $100 compared to a $2k laptop purchase?

nothing.

gaelan
Sep 6, 2007, 02:49 PM
That was one heck of a quick decision and I'm very impressed. I hope this will be taken in good faith and not used against Apple in the future on forthcoming product upgrades.

Nice one Steve.

as an stock holder, this is disappointing.

also, giving in to such misdirected demands fueled by emotions of entitlement, makes me wonder exactly how spoiled his kids are...

Unspeaked
Sep 6, 2007, 02:49 PM
Further proof Apple is willing to go to any length to hit the million sold figure...

(I wasn't so sure the iPhone sales were off with the price drop yesterday, but I think this really confirms what Wall Street has been saying about taking drastic steps to hit their targets.)

technicolor
Sep 6, 2007, 02:49 PM
Sweet! Guess I'll be getting that 160GB iPod Classic after all! :):):):)

Yep. Mine is going to an ipod classic.

Apple!Fre@k
Sep 6, 2007, 02:49 PM
I agree. Kudos to Apple for caring about their Customers. :)

+1

I have now officially ended my boycott against buying future Apple products the day they are released. While $100 credit isn't perfect, it shows Apple cares about their customers and that's good enough for me.

jmingin
Sep 6, 2007, 02:49 PM
Way to go Apple! I knew you'd come through for us.

Thanks Steve!

rockthecasbah
Sep 6, 2007, 02:50 PM
For some reason this is very amusing to me, and surprising. I expected Apple to give a big "screw you" to all the people that bought... Hmm. Does this include people that bought refurb too? :p

Twinkie
Sep 6, 2007, 02:50 PM
Goodwill restored.

Now I can end my 24-hour boycott and get a nice new Classic :D

Doctor Q
Sep 6, 2007, 02:51 PM
What do you think will be the percent of people who actually spend this $100 credit?33%

And what do you think will be the percent of people who overspend the $100 credit and actually give Apple more money?90%

When raising children, you're not supposed to reward whining. Since Apple has taught us that whining is not only tolerated, but rewarded, we can be proud that MacRumors was doing its part by hosting so many complaints!

What shall we complain about for our next discount?

Lancetx
Sep 6, 2007, 02:51 PM
I'll give Jobs credit when credit is due. At least this shows that he does listen when his best customers have a legitimate complaint. And it's good to see that they do care about their existing customers, and not just about going after new ones. A lot of companies come to mind that don't.

chr1s60
Sep 6, 2007, 02:51 PM
Just think, if they sold a million iPhones, then this is a

$100,000,000 Apology

That's a lot of zeros -- I guess he really is sorry ;)

--t

To an extent it is, but there are other factors. You have to imagine that a percentage of people will not use the credit. I am guessing the credit will also have an expiration date so that users who forget about it miss out. Then there are the people who will buy things that cost more than $100 which means Apple will still make money. I am guessing they wont even lose half of that. Not to mention, they are making money in the long run by keeping a lot of loyal customers by doing this.

BennyK
Sep 6, 2007, 02:52 PM
wow, Apple is really doing the right thing here. I am impressed.
Good Job Stevie!

Twinkie
Sep 6, 2007, 02:52 PM
When raising children, you're not supposed to reward whining. Since Apple has taught us that whining is not only tolerated, but rewarded, we can be proud that MacRumors was doing its part by hosting so many complaints!

What shall we complain about for our next discount?Hopefully something exclusive enough that the people whining about whiners won't be able to get one. :)

DVNIEL
Sep 6, 2007, 02:52 PM
lighten up, francis.

HAHAHAAAHAHAHAHAAHAHAHAH!!! :D:D:D

STRIPES! And it came from a girl, thats even more hot


I just want to say thank you for those that moaned and b!7ched about losing $200. I was one of those that bought the iPhone on iDay, and when I woke up, my concern was when I was gonna get my nano. I love it when people get all bent out of shape, raise their blood pressure, secrete more stress acid into their stomachs to cause more ulcers, and give more patients to the hospital I work at business.... and I benefit from their work

Hahaha you guys are something, seriously.

Apple should sell some books at their store, maybe you guys can use that $100 we'll all get on something like "How to Cope With Loss Better" or "Money Isn't Everything." Thanks for the free $100.

Ha ze
Sep 6, 2007, 02:52 PM
nice, there will be a new Apple BT Headset on my ear next week

Unspeaked
Sep 6, 2007, 02:53 PM
Wow, that's amazing. Wonder what the stock will do?

Amazing, check out 3:15, which is right about when the open letter was released to the public:

http://ichart.finance.yahoo.com/b?s=AAPL

slffl
Sep 6, 2007, 02:53 PM
as an stock holder, this is disappointing.

also, giving in to such misdirected demands fueled by emotions of entitlement, makes me wonder exactly how spoiled his kids are...

Greedy stockholders and board members are what will/is destroying Apple, especially once Steve is gone.

somberlaine
Sep 6, 2007, 02:53 PM
Wow...I was pretty content but this is definately great new!

tkidBOSTON
Sep 6, 2007, 02:53 PM
I'm glad Steve read my post and responded...
http://forums.macrumors.com/showpost.php?p=4140762&postcount=116
:D

rdowns
Sep 6, 2007, 02:53 PM
as an stock holder, this is disappointing.

also, giving in to such misdirected demands fueled by emotions of entitlement, makes me wonder exactly how spoiled his kids are...

As a stockholder, I disagree.

New iPod announcement yesterday and it was all over the new yesterday and today.

$100 return to existing customers via store credit
$100,000,000 potential exposure
$1 billion in free advertising
Priceless

blindzero
Sep 6, 2007, 02:53 PM
Which is a lot less than a $200,000,000 loss from rebating everyone $200.

It's really a great move because seeing the price drop so quickly is enough to make people hold off on their next apple purchase. Tossing $100 of Apple credit to that same audience all but ensures those purchase will go through.

nothing.

Yup. Great move. Hard cost to them is much less than 100 Million since it is store credit in their own store where they get all the profits instead of sharing with other retail channel. Plus it will mostly likely inspire a bigger purchase it's a move that will only help the bottom line.

And it's always better for a company to have a problem like this and fix it fast than have no problem at all. It looks GREAT especially if it gets press.

ariel
Sep 6, 2007, 02:54 PM
classy move on Apple's part... 3 cheers for Apple.

Peace
Sep 6, 2007, 02:54 PM
This is great PR.

I'm thinking about all those ads taken out by the competition berating the iPhone customer getting screwed by Apple.Now those companies have egg on their face.

Funny stuff.

Apple is pure genius.

DesignerOnMac
Sep 6, 2007, 02:54 PM
Works for me.

Really, it's an easy move. They probably get 25-50% markup on products, even more if you buy software, and odds are you'll spend more than $100. Pretty cheap for a little good will.

We had hardware and software training twice a year before all the new stuff was to be sold. Met a lot of company people. I hate to burst your bubble on the thought that Apple has margins of 25-50%, but they simply do not!

And most retail stores have margins of 10% or less on a given product!

tribulation
Sep 6, 2007, 02:54 PM
Thank you.
I don't even own an iPhone but was ticked off big time on this one. This is a very reasonable and honorable offer.

Project
Sep 6, 2007, 02:54 PM
as an stock holder, this is disappointing.

also, giving in to such misdirected demands fueled by emotions of entitlement, makes me wonder exactly how spoiled his kids are...

As a shareholder, you should be over the moon. The amount of good will and press this gesture will gain Apple will be huge. And really, every cent of that money will be spent on Apple products.

scrambledwonder
Sep 6, 2007, 02:54 PM
Excellent news! Thanks Apple!

And I was going to just drop it . . . I knew that the iPhone's price would drop and/or something better would come along soon. It sucks, but them's the breaks. That's what early adopters have to live with.

A $100 rebate is really above and beyond my expectations.

Hooray!

And, ironically, I'm probably going to use the rebate on another iPhone for the family!

dbwie
Sep 6, 2007, 02:55 PM
A good use for the $100 for iPhone users (no, I don't have one "yet") might be an Airport Express base station. This will allow you to create a wireless connection for the iPhone in places where there are only wired connections. If you already have one at home, a second one will allow you to extend the wireless range, so you can surf on the iPhone from your neighbors yard. I also wonder if the iPhone can be charged from the USB port on the Airport Express. Has anyone tried this? These would make the Airport Express an excellent iPhone accessory for home and the road. I'm surprised that Apple is not marketing/positioning the Airport Express base station as an iPhone accessory.

DTphonehome
Sep 6, 2007, 02:55 PM
I am a loyal Apple customer and purchased an iPhone on launch day. Early this morning I went to the local Apple store (Mission Viejo CA.) where I purchased my iPhone. I saw the manager and he recognised me because of many prior purchases. He asked me how things were going and I acknowledged that I felt like Apple kicked me in the nuts after they dropped the price so soon. Without even blinking an eye, he pulled out his scanner, and credited my Visa $215 and change (the difference in price) and handed me the receipt. He apologised and said because of customers like me, Apple is where it is today. This is what makes Apple such a special company and keeps me coming back to buy more stuff. Bravo Apple!

Just don't take advantage and try to cop the $100 store credit too.

min_t
Sep 6, 2007, 02:55 PM
I'll take it. But... I bought my iPhone through AT&T and I don't think I have the receipt anymore.

Relax, itunes activation=Apple has you dotted on their global map of iPhone users.

macenforcer
Sep 6, 2007, 02:55 PM
I LUV you Steve. Good man.

I feel much better now. Seeing as how I got 2 iphones, one for me and one for my wife I am looking at a $200 gift card. New ipod here I come.

synth3tik
Sep 6, 2007, 02:56 PM
i want 3rd party software support. I want to be able to use web gallery with out having to use iphoto 08. I don't want to have ro pay an extra $1 to get ringtones that don't suck. I want ringtones that are not songs. What would i do with $100 store credit. I feel cheated. Not because of the price drop but necause the iphone has not loved up to what apple promised.

LimeiBook86
Sep 6, 2007, 02:57 PM
See now that's more like it. :D

This makes me feel better, it isn't $200 but, it's sure a whole lot better than nothing! ;)

http://enquata.com/mr-images/celebrate.gif

WannabeSQ
Sep 6, 2007, 02:58 PM
I'm gonna use my store credit to buy another iphone (4gb) for my fiance! I was gonna get her an ipod nano, but now that apple has given me this great gesture, im gonna show my appreciation and give them more of my money.

imwoblin
Sep 6, 2007, 02:58 PM
Just don't take advantage and try to cop the $100 store credit too.

Now why would I do that?

dejo
Sep 6, 2007, 02:59 PM
i want 3rd party software support. I want to be able to use web gallery with out having to use iphoto 08. I don't want to have ro pay an extra $1 to get ringtones that don't suck. I want ringtones that are not songs. What would i do with $100 store credit. I feel cheated. Not because of the price drop but necause the iphone has not loved up to what apple promised.
When did Apple promise 3rd party software support or being able to use Web Gallery with out having to use iPhoto '08 or not having to pay an extra $1 to get ringtones that don't suck or using ringtones that are not songs?

NightStorm
Sep 6, 2007, 02:59 PM
i want 3rd party software support. I want to be able to use web gallery with out having to use iphoto 08. I don't want to have ro pay an extra $1 to get ringtones that don't suck. I want ringtones that are not songs. What would i do with $100 store credit. I feel cheated. Not because of the price drop but necause the iphone has not loved up to what apple promised.
Apple promised any of those things? No, I didn't think so. Stop blaming Apple for things that you knew going into it. This mentality is just as bad as the people who are suing because they didn't know the battery wasn't user replaceable.

Ringtones are cheaper than you'd pay another service, AND you have the entire song as well. Sure, it would be nice if it was included in the purchase price, but I don't think the record industry would be so willing to leave that revenue stream just for Apple.

Bottom line, Apple doesn't owe you anything; you could have returned it but you didn't. Now, they are giving you a $100 credit that they have no obligation to and you're still complaining. If you don't want it, I'll be more than happy to take it off your hands.

Macmaniac
Sep 6, 2007, 02:59 PM
Now watch all those who get their $100 and promptly spend $1200 for a new Macbook, I love the way people think. Apple is going to be laughing to the bank.

Peace
Sep 6, 2007, 03:00 PM
I'm gonna use my store credit to buy another iphone (4gb) for my fiance! I was gonna get her an ipod nano, but now that apple has given me this great gesture, im gonna show my appreciation and give them more of my money.

That might not be a good move considering Apple dropped the 4gb from the line-up.They might stop support for the 4gb iPhone.Not saying they will but they could.

uMac
Sep 6, 2007, 03:00 PM
Not that I have one, but does this count against the 4GB & 8GB?

KREX725
Sep 6, 2007, 03:00 PM
As a stockholder, I disagree.

New iPod announcement yesterday and it was all over the new yesterday and today.

$100 return to existing customers via store credit
$100,000,000 potential exposure
$1 billion in free advertising
Priceless

Plus, a $100 voucher ensures even more traffic into the Apple Stores, which could mean nudging some toward a bigger purchase (iMac, MB, MP, etc.). If I were the conspiracy type I might suspect a marketing ploy, but I think they're just trying to head off any negative press over this.

I was surprised so many news reports covered the drop in price, but personally I never saw one try to show an angry iPhone owner (Really, how many products get a free advertisement on your local news?).

psingh01
Sep 6, 2007, 03:00 PM
How many people are going to give back the $200 they've already been refended and take this $100 store credit? Or are they going to....gasp....try to rip off Apple?! :D

iVoid
Sep 6, 2007, 03:00 PM
Nice job, Apple. thanks. I had tried calling this morning, but gave up after a half hour on hold. I guess others were trying too.


I only hope they don't refuse to give me a $100 credit voucher because I used my $50 iPod battery settlement credit to buy the iPhone. :D

Goldenbear
Sep 6, 2007, 03:00 PM
Wow... this is unheard of. So what happens when the 16 gig iPhone comes out? Are people going to freak, again?

Probably.

DTphonehome
Sep 6, 2007, 03:00 PM
Greedy stockholders and board members are what will/is destroying Apple, especially once Steve is gone.

There we go with the "greedy stockholder" again. :rolleyes:

Who do you think keeps the company afloat? Where do you think they get capital to produce these products you love? Stop hating on people who look out for their financial future, go set up a brokerage account, and get on the gravy train!

BritinNC
Sep 6, 2007, 03:01 PM
Well done Apple. In all my rantings I never suggested that a rebate was required as it would be a very expensive thing to do and a dubious precident to set (I simply thought it was a very bad business decision period, we'll see in a few months if I'm right or not). But this will remove the first concern that I had that loyal customers felt screwed. I am still concerned about the business decision and whether the stock is attractively priced right now, but I have had my faith in Apple restored and will continue to be an early adopter of the products.

Thank you Mr Jobs and Apple.

kugino
Sep 6, 2007, 03:01 PM
that's very gracious on apple's part. not necessary by any means, but probably makes good business sense from the perspective of customer care and customer satisfaction. i still think apple did nothing WRONG by dropping prices...but if this abates the haters, then all is well in apple-land again :)

gugy
Sep 6, 2007, 03:01 PM
are the whiners happy now?! :D

Let's move on, please!

BKF
Sep 6, 2007, 03:04 PM
That's classy.

fastdrive
Sep 6, 2007, 03:04 PM
I'm going to use my 2 $100 credits (bought 2 phones) and purchase Leopard. How much is that going to be anyway?

Should I buy it on launch day or wait 2 months when the price drops :D

sedarby
Sep 6, 2007, 03:04 PM
All I want to say is if we stop complaining this wouldn't of happened. So to ya'll that told us to stop whinning :p
I am just going to save it up for Leopard.

BS, this was totally planned. Does anyone really think that Apple wasn't expecting a backlash from the early adopters? They are not sitting around rolling dice to figure out their next move, they plan the future.

NewSc2
Sep 6, 2007, 03:05 PM
Well personally, I'd rather have the $200 refund, and am going through the process with MasterCard to get it back. It's nice to know I have this to fall back on. And no, I won't be trying to double-dip. A $399 iPhone is good enough for me :)

Stampyhead
Sep 6, 2007, 03:05 PM
as an stock holder, this is disappointing.

also, giving in to such misdirected demands fueled by emotions of entitlement, makes me wonder exactly how spoiled his kids are...

And that's why Steve Jobs is CEO of Apple and not you. He understands that there's more to growing a company than straight profits. Keeping loyal customers happy is an investment in future profits. I imagine the story of the iPhone price drop will end up in case studies for Marketing classes in Business schools all over the world.

phalewhale
Sep 6, 2007, 03:06 PM
as an stock holder, this is disappointing.

also, giving in to such misdirected demands fueled by emotions of entitlement, makes me wonder exactly how spoiled his kids are...

Sorry Gaelan, but I think that the money is better off in the pockets of the people. Most Stock Holders do well at the expense of customers. Plus, you will no doubt get it all back pretty soon anyway. This is an amazing gesture by Apple!

Apple, and 2600 Magazine (http://www.2600.com) are the only 2 companies that have ever gone out of their way to provide me with first rate, top quality service. I have had so many bad experiences from other companies.

Once again, well done Apple/Steve Jobs. You have done the right thing. An amazing gesture to your loyal customers. FANTASTIC!

Schtumple
Sep 6, 2007, 03:06 PM
Great, so now apples profit results are going to be less because people whined

GOOD WORK

rushmere
Sep 6, 2007, 03:06 PM
As an Apple shareholder, I think this is great news.

There are now going to be nearly 1 million people heading for an Apple Store with $100 in their pockets. Guess how many people are going to spend a lot more than $100? They're going to walk away with some great new products, Apple makes a fair profit, and shareholders benefit too. Everyone is smiling. Happy days :D

Shtekeris
Sep 6, 2007, 03:07 PM
whats the problem anyway, it was YOUR choice to pay 599$, you wanted iPhone, not that they told you "Buy now for 599 or die!"

**** happens

Island Dog
Sep 6, 2007, 03:07 PM
I think this was a good move on Apple's part, and I'm moderately pleased. I will definitely use this for some holiday shopping.

However, I will think twice before buying another 1st generation product.

:)

SPUY767
Sep 6, 2007, 03:07 PM
Actually, AAPL (http://new.quote.com/stocks/overview.action?CPID=ILC-9V53Y2584954&s=AAPL) has been steadily climbing all day since about just before 10am.

For some reason, it really took a crap right after you said that. Thanks a lot!

macanudo
Sep 6, 2007, 03:08 PM
I am an early adopter who felt crappy about the announcement yesterday, but understood. my iPhone has been a wonderful all-in-one device for me the past 2 months so I have no regrets. This move by jobs just goes to show how important the iPhone franchise is to Apple - by trying to keep everyone, even early adopters like me, happy.

Virgil-TB2
Sep 6, 2007, 03:08 PM
YAY!:apple::D:D:D

:p TO ALL THE HATERS who tried to make us feel bad yesterdayYou *should* feel bad.

The price drop was neither unusual, unprecedented, nor dissimilar from the way any one of a dozen other large phone/computer/gadget companies do business. You simply had no right to complain about it. Microsoft, Sony, Toshiba, Nokia, Motorolla have all done this exact same thing (or worse), in the exact same time frame. There is simply NO LOGICAL OR FACTUAL REASON why you should have got a refund, you were just being a baby about it.

The only reason Apple caved was the PR aspect and you have just taken a rather large amount of money out of the pocket of a company that did you no harm whatsoever. You are no better than those greedy *******s that are trying to extort money out of Apple over their batteries and you should definitely, positively, FEEL ASHAMED.

This is a lesson for Apple I guess about what happens when you are selling a product to the great unwashed masses out there instead of your base of supporters. It makes me miss the old days when Apple was a lot smaller and all the greedy, self-serving opportunists had never heard of OS-X.

The price of fame indeed. :(

weeman
Sep 6, 2007, 03:08 PM
What would i do with $100 store credit.
If you dont want it, I will gladly take it off your hands :D

I love you Jobs, you made my day.

Shacklebolt
Sep 6, 2007, 03:09 PM
Think about it -

Steve Jobs is giving away almost $100,000,000 of Apple merchadise. That's quite something based solely on customer response.

ipoddin
Sep 6, 2007, 03:10 PM
How many people are going to give back the $200 they've already been refended and take this $100 store credit? Or are they going to....gasp....try to rip off Apple?! :D

I'm sure they are going to go by either the date on your store receipt (prior to the last 14 days) or use your serial number to determine purchase date.

This definitely makes me feel better. It's an acknowledgment and I think that's really all that people wanted.

kellen
Sep 6, 2007, 03:10 PM
BS, this was totally planned. Does anyone really think that Apple wasn't expecting a backlash from the early adopters? They are not sitting around rolling dice to figure out their next move, they plan the future.

I think they expected it, but were gambling it wouldn't cause such a hastle. When it did, they just put their plan b on to release the credit.

Just droppin the price and infuriating customers would cause alot more publicity then announcing a refund for current customers.

Just wonder what stipulations are going to be tied to the gift card. Does the total have to be over a certain amount?

Just have to wait and see.

Doctor Q
Sep 6, 2007, 03:10 PM
I'm glad Steve read my post and responded...
http://forums.macrumors.com/showpost.php?p=4140762&postcount=116
:DWhatayaknow. It was tkidBOSTON's idea. Steve Jobs read it here and ran with the idea! Nice work, tkidBOSTON!

Unless, as some suspect, Apple had this planned all along.

Under which of these circumstances would Apple make the most overall iPhone profit for the year? $200 price drop. Some early adopters are annoyed enough that they make fewer other Apple purchases, at least for this holiday season. Lots of holiday purchasers buy iPhones.


$200 price drop, $100 store credits for early adopters. Placated early adopters continue being customers. Lots of holiday purchasers buy iPhones.


$100 price drop. Fewer complaints from early adopters; most continue to buy Apple products as usual. Fewer holiday purchasers buy iPhones due to the higher price, but there's more profit per unit.

phalewhale
Sep 6, 2007, 03:12 PM
Great, so now apples profit results are going to be less because people whined

GOOD WORK

Jee Wiz, how pathetic are you?! Are you taking the p***? Wake up dude, it's all about customer service man!!! Anyway, don't you think the people have a right to "whine"? Apple/Steve Jobs obviously thought they had a bit of a point considering the rebate.

It's not all about profits. Exemplary customer service makes customers come back for more and more. Think of the bigger picture.

cliffjumper68
Sep 6, 2007, 03:12 PM
There we go with the "greedy stockholder" again. :rolleyes:

Who do you think keeps the company afloat? Where do you think they get capital to produce these products you love? Stop hating on people who look out for their financial future, go set up a brokerage account, and get on the gravy train!

a....the answer is customers..... they get capital from customers.

UMHurricanes34
Sep 6, 2007, 03:12 PM
Thanks Steve and Co, one of those shiny new iPods will be finding it's home with me thanks to a $100 discount ;)

psychofreak
Sep 6, 2007, 03:12 PM
Apple's support baffles me. At first my Macbook KEPT having hardware problems and I was messed about (over 3 months out of 8 in repair, no offer of replacement even after asking). They even said that the random shutdown was my fault. Then they replace my Macbook with a brand new C2D (up from CD). This really is incredible. People don't deserve the $100. At all. They paid for the product and it hasn't changed.

I think that Apple just want people to switch to the Mac, and thats really what all the iPhone/iPod goodness is for. The happier people are with Apple, the better they feel about getting a Mac.

dagomike
Sep 6, 2007, 03:13 PM
Muhahahah.... now we know Steve actually reads that email account. :p

Virgil-TB2
Sep 6, 2007, 03:13 PM
Yesssss Yesssss Yesssss
To All Those People Who Called Us Whiners

I LOVE YOU STEVE JOBS THANK YOU SO MUCHThis makes no sense at all.

If a baby whines, and then eventually the parent gives in and gives them the toy, that doesn't mean that they didn't whine in the first place.

In fact, it is *proof* that they *are* a whiney baby.

Squonk
Sep 6, 2007, 03:14 PM
Heh. Pay close attention to how Apple builds hype.

Start at $600 -- get the early adopters in, build a reputation as a premium product.
Cut to $400 -- early adopters go nuts, which is exactly as intended -- everyone and his mother finds out about the price drop.
Once the "price drop furor" story hits CNN, Fox News, and absolutely everywhere else, throw the early adopters $100 in store credit. Which costs about nothing, since they're most likely to buy accessories with that kind of amount, and accessories are all profit.

End result: everyone hears about the price drop without a dime in ad spending, and everybody loves Apple. What a clever script.

Very crafty, eh? :p

So, this will "cost" :apple: something like 500,000 * $100 = $50,000,000, eh? I am assuming that there are 500,000 phones sold that will be eligible. $50 million seem like a lot of money for an "advertising" campaign. But then again, 100% of this money comes back to :apple: in sales. But the exposure out there is immense! Much more than if they had run TV commercials and print ads. Money well spent. Go The Jobs!

scotty588
Sep 6, 2007, 03:16 PM
Wirelessly posted (iphone: Mozilla/5.0 (iPhone; U; CPU like Mac OS X; en) AppleWebKit/420+ (KHTML, like Gecko) Version/3.0 Mobile/1C28 Safari/419.3)

So apple gives a $100 gift card and now people are going to go out and buy the new iPods which will be price cut in 60 days. What ever happened to people saying I will never be an early adopter again? As other people have said apple marks their prices up so they are in reality giving out $20 and hoping people spend more.

jackc
Sep 6, 2007, 03:16 PM
So is Steve going to space out those price decreases a little more to avoid the whining campaign?

Yay!

cliffjumper68
Sep 6, 2007, 03:16 PM
And that's why Steve Jobs is CEO of Apple and not you. He understands that there's more to growing a company than straight profits. Keeping loyal customers happy is an investment in future profits. I imagine the story of the iPhone price drop will end up in case studies for Marketing classes in Business schools all over the world.

Thats also why he pushes for inovation when an existing product has years of life left in it. Vision just can not be taught! Way to go Steve!:apple:

technicolor
Sep 6, 2007, 03:16 PM
You *should* feel bad.

The price drop was neither unusual, unprecedented, nor dissimilar from the way any one of a dozen other large phone/computer/gadget companies do business. You simply had no right to complain about it. Microsoft, Sony, Toshiba, Nokia, Motorolla have all done this exact same thing (or worse), in the exact same time frame. There is simply NO LOGICAL OR FACTUAL REASON why you should have got a refund, you were just being a baby about it.

The only reason Apple caved was the PR aspect and you have just taken a rather large amount of money out of the pocket of a company that did you no harm whatsoever. You are no better than those greedy *******s that are trying to extort money out of Apple over their batteries and you should definitely, positively, FEEL ASHAMED.

This is a lesson for Apple I guess about what happens when you are selling a product to the great unwashed masses out there instead of your base of supporters. It makes me miss the old days when Apple was a lot smaller and all the greedy, self-serving opportunists had never heard of OS-X.

The price of fame indeed. :( You dont know anything about me nor did you read my posts. I was going to live with the cut. I didnt write a letter to Steve, I didnt call an Apple store, I didnt call At&T. I am certainly going to take the 100 dollar credit for sure. I could tell you what you are no better than but I may get banned.:D I love the fact that the lot of you are so steaming mad that we are getting a credit. Its great :D

DTphonehome
Sep 6, 2007, 03:17 PM
a....the answer is customers..... they get capital from customers.

Right, because every company gets customers before they have products.

suneohair
Sep 6, 2007, 03:17 PM
Think about it -

Steve Jobs is giving away almost $100,000,000 of Apple merchadise. That's quite something based solely on customer response.

Apple is moving the money around. There will be a lot of people who don't use it and people who don't even know about it. Plus they said they SHIPPED their millionth iPhone. Ship and sell are two different verbs. They haven't sold a million.

Besides, with Apples already high margins, I doubt they will be losing much.

Kudos to Apple. But I would have let you all whine til you turned blue. Then dropped the price $100 more.

Virgil-TB2
Sep 6, 2007, 03:17 PM
Saving face. Nice move. ... I don't see this about "saving face" at all. Apple did nothing wrong or unusual here in the first place. All they did was try to give people a break and they got caught in an avalanche of crap from a few thousand whiney babies. :eek:

This is more about stuffing a big lolipop into the babies' mouth just to shut it up.

~Shard~
Sep 6, 2007, 03:17 PM
This is a brilliant move by Steve Jobs. Let the babies have their bottle.

Not only does he appease a lot of the whiners and complainers through this act, but he has effectively tricked them into spending even more money on Apple products! Yes, they have a $100 credit now, but how many people are going to use their Apple Store credit for a purchase equaling exactly $100? I’m betting many customers will put it towards a larger purchase, meaning they are still shelling out even more of their own cash as a result.

They paid an extra $200 for their iPhones, now they'll spend some extra cash in the Apple Store too! Makes sense though – they complain about a price drop, so logically they should be happy about the prospect of spending more money with Apple, the company they were cursing yesterday. :p :cool:

Telp
Sep 6, 2007, 03:18 PM
This makes no sense at all.

If a baby whines, and then eventually the parent gives in and gives them the toy, that doesn't mean that they didn't whine in the first place.

In fact, it is *proof* that they *are* a whiney baby.

I agree, i am not at all going to complain about what Apple is doing, but i think its totally uncessary. I am happy about it, but they really shouldnt have had to do it. This is unprecedented as far as i know.

Abraxx
Sep 6, 2007, 03:18 PM
I'm following the discussion for quite some time now and I never really post on discussions like these, but now I feel I'll have to underline "something" a bit, maybe some of you start

THINKing DIFFERENT

Don't act like "the"/"a" predictable majority does, or you are just another little fish in the wide ocean...get out of the water...

I applaud :apple: , but for something else :)

'nuff said ;)

brn2ski00
Sep 6, 2007, 03:18 PM
Did anyone see this:

http://money.cnn.com/2007/09/06/technology/iphone_price/index.htm?cnn=yes

The article clearly states that this refund pertains only to the 8GB model. What about the 4GB?

stompy
Sep 6, 2007, 03:18 PM
Whiners whining about whiners. Awesome.

Time to change your sig

ejrizo
Sep 6, 2007, 03:19 PM
thanks apple... i knew i couldnt stay mad at you forever :-)

thanks for taking care of us...

how much a difference that makes is amazing..

either apple has great PR stuff for free PRESS or they have great customer service...

now i am happy and will continue pushing apple as a great company and still recomend their products to everyone i know like i have been doing for the past 10 years...

:apple:

ariza910
Sep 6, 2007, 03:19 PM
Heh. Pay close attention to how Apple builds hype.

Start at $600 -- get the early adopters in, build a reputation as a premium product.
Cut to $400 -- early adopters go nuts, which is exactly as intended -- everyone and his mother finds out about the price drop.
Once the "price drop furor" story hits CNN, Fox News, and absolutely everywhere else, throw the early adopters $100 in store credit. Which costs about nothing, since they're most likely to buy accessories with that kind of amount, and accessories are all profit.

End result: everyone hears about the price drop without a dime in ad spending, and everybody loves Apple. What a clever script.


I was thinking the same thing last night - all the local LA news stations were picking up the story about the $200 iPhone price cut. While it would have been smart to do a $100 cut now and another $100 cut in a month or two, so as to not piss people off, the drastic $200 cut was sure to generate a ton of buzz and motivate the second wave of iPhone buyers.

$100 store credit at Apple is brilliant - its just enough of a push needed for a lot of people to buy a new $1k+ iMac or MacBook.

ifjake
Sep 6, 2007, 03:19 PM
both a very considerate and a very business-savvy response. nicely played, Jobs.

doug.hall
Sep 6, 2007, 03:20 PM
Legend. Absolute legend. Now I feel obliged to buy an iPod Touch even though I don't need one. This is marketing at it's best.

technicolor
Sep 6, 2007, 03:20 PM
.

Kudos to Apple. But I would have let you all whine til you turned blue. Then dropped the price $100 more. You will never be in a position to make that sort of decision so it doesnt matter what you would do. :D

LimeiBook86
Sep 6, 2007, 03:20 PM
Did anyone see this:

http://money.cnn.com/2007/09/06/technology/iphone_price/index.htm?cnn=yes

The article clearly states that this refund pertains only to the 8GB model. What about the 4GB?

I hope that's incorrect. *looks at his 4GB iPhone*

Hopefully we'll have full details next week... Maybe they will upgrade our 4GB phones to an 8GB phone. Haha :D (Dreams on)

matznentosh
Sep 6, 2007, 03:21 PM
...$100 store credit doesn't cost apple $100, but don't think they're giving it to ppl cos they deserve it, they're giving it to their customers because they need them and they knew too many were annoyed for Apple to get away with it (like they did when the ipod photo suddenly became £20 more expensive than a monochrome 4G having been hundreds of dollars more beforehand).

Although the $100 is for Apple product, so isn't the same as sending out a $100 rebate check, Apple still needs to "expense" this action. The total - which I don't think is going to be $100,000,000, since I don't think a million phones have been sold, more likely $20 million - anyway, whatever the total is then has to be subtracted from profits on the next quarterly report and will therefore reflect stock value at that time.

So this is still a big deal for Jobs to decide to do.

billchase2
Sep 6, 2007, 03:21 PM
This makes me VERY happy!

Way to go, Apple! Classy as always!

DesignerOnMac
Sep 6, 2007, 03:21 PM
I think they expected it, but were gambling it wouldn't cause such a hastle. When it did, they just put their plan b on to release the credit.

Just droppin the price and infuriating customers would cause alot more publicity then announcing a refund for current customers.

Just wonder what stipulations are going to be tied to the gift card. Does the total have to be over a certain amount?

Just have to wait and see.

I guess according to you, Apple and Steve spent countless nights in the back room and planned all of this? Guess they had more time on their collective hands than I even thought!!

Funny with all the pissed off people yesterday, there were what? 59 pages of whiners? And today there are only 8 pages saying thank you!

We love to bitch about Apple and deflame Mr. Steve Jobs, but the same people as so ungrateful they can not say thank you!

clevin
Sep 6, 2007, 03:22 PM
its good, indeed, now maybe double that credit....

doug.hall
Sep 6, 2007, 03:24 PM
its good, indeed, now maybe double that credit....

Why? I purchased an LCD TV only two months ago for over £1750. You can get the same LCD for £690 now. I don't see sony doing the same.

Abraxx
Sep 6, 2007, 03:25 PM
I was thinking the same thing last night - all the local LA news stations were picking up the story about the $200 iPhone price cut. While it would have been smart to do a $100 cut now and another $100 cut in a month or two, so as to not piss people off, the drastic $200 cut was sure to generate a ton of buzz and motivate the second wave of iPhone buyers.

$100 store credit at Apple is brilliant - its just enough of a push needed for a lot of people to buy a new $1k+ iMac or MacBook.

And there is even more to it....

plinden
Sep 6, 2007, 03:25 PM
Damn it, now I can gloat only half as much at getting it for $399. Apple always screws us.

I'm only joking, of course. Glad to see this.

mduser63
Sep 6, 2007, 03:25 PM
Now I need to decide wherher to put this toward Leopard or a new nano. I was not one of the people complaining about the price drop, but I'm still really pleased and impressed that Apple is doing this. Thanks for listening to your customers Steve!

P.S. Anyone know why the iPhone keyboard auto correct doesn't work reliably in these forum reply fields? It didn't work the whole time I was typing this message until I got about halfway through this P.S. then it suddenly started working again. Slows me way down when it doesn't work!

sixth
Sep 6, 2007, 03:26 PM
Thank you Apple....Thank you.

Now get my Direct Push and you will have 30 phones sold right off the bat!!! o and open it to business customers!!!

irun5k
Sep 6, 2007, 03:26 PM
Good work, fellow iPhone early adopters.

We spoke loudly and ignored those trying to silence us as "whiners." I don't think Apple caved in- rather I think they realized it was the right thing to do. I'm not sure why it bothered other people that we were trying to gather some momentum, but this proves that it was worth it.

Further, this was a shot across the bow in a couple of ways to Apple. First, I think the market let them know that the iPhone price point was too high- so they reduced the prices. Second, we let them know that even as their most loyal fans and early adopters, we're not completely brainwashed fan boys. We know where the line is.

gwangung
Sep 6, 2007, 03:26 PM
Besides, with Apples already high margins, I doubt they will be losing much.

Kudos to Apple. But I would have let you all whine til you turned blue. Then dropped the price $100 more.

I would take people more seriously if they didn't think Apple has high margins.

Compared to manufacturing companies, they don't. Compared to most software developers, they're low. It's only to computer manufacturers they MIGHT be considered high...except to survive, they pretty much have to pitch their margins higher.

clevin
Sep 6, 2007, 03:27 PM
Why? I purchased an LCD TV only two months ago for over £1750. You can get the same LCD for £690 now. I don't see sony doing the same.

nice, like sony has fans like apple.

mrrydogg
Sep 6, 2007, 03:28 PM
I think this is a perfectly acceptable response. I really didn't expect anything, but it is good to know that their are companies that actually care about their reputation. iPhone users don't make up a large percentage of Apple's customer base, but I would venture to guess that most of us are Apple lifer's. Apple is a great company and responses like this prove it.

Yes, we may have whined about this, but Apple would of never conceded unless they thought we had a point. So, I think the case is closed on this part of Apple's history.

socks
Sep 6, 2007, 03:28 PM
If you bought an iPhone in the last 14 days can you return like other apple products? If so....

1) Go claim your credit
2) Return the phone
3) Buy the phone again with the credit. - Price $299 ??

:rolleyes:

amac4me
Sep 6, 2007, 03:29 PM
Nice move Steve. I suppose most will either use it towards a new iPod nano or Mac OS X Leopard.

So what's the cost to Apple ... lets assume 800,000 early adopters at $100 per adopter that makes it a $80 million concession (at least on paper). We all know that the retail price of anything includes a markup so the real cost is something close to 60 - 70 million dollars. A small price to pay considering the level of anger amongst iPhone owners. Oh yeah, let's not forget the PR.

irun5k
Sep 6, 2007, 03:29 PM
Funny with all the pissed off people yesterday, there were what? 59 pages of whiners? And today there are only 8 pages saying thank you!


Uhh... the 59 pages took around 20 hours to generate.

kellen
Sep 6, 2007, 03:29 PM
I guess according to you, Apple and Steve spent countless nights in the back room and planned all of this? Guess they had more time on their collective hands than I even thought!!

Funny with all the pissed off people yesterday, there were what? 59 pages of whiners? And today there are only 8 pages saying thank you!

We love to bitch about Apple and deflame Mr. Steve Jobs, but the same people as so ungrateful they can not say thank you!

I never said that, this is you incorrectly deriving information from my posts.

My point was that they had to have seen the backlash from the owners coming. Perhaps they didn't its just my opinion.

I already said thanks, yesterday when the store in Lynnwood, WA refunded me the difference on both of my apple iphones that I bought on release day.

Also it was just announced 20 minutes ago about the rebate. It was announced 24 hours ago about the iphone price adjustment. Hardly a valid comparison

Have a good day!

daveporter
Sep 6, 2007, 03:29 PM
I believe that Apple owes me nothing, however, since they are offering it, I will use it to purchase my wife an iPod Touch. Ever since she saw the new iPod add Apple sent around today by email, I have been receiving massive hints from her.

That will bring the cost down to $299 for the 16 GB version which is a very fair price for essentially a hand held computer as far as I'm concerned.

tkidBOSTON
Sep 6, 2007, 03:29 PM
Whatayaknow. It was tkidBOSTON's idea. Steve Jobs read it here and ran with the idea! Nice work, tkidBOSTON!

Unless, as some suspect, Apple had this planned all along.

Under which of these circumstances would Apple make the most overall iPhone profit for the year? $200 price drop. Some early adopters are annoyed enough that they make fewer other Apple purchases, at least for this holiday season. Lots of holiday purchasers buy iPhones.


$200 price drop, $100 store credits for early adopters. Placated early adopters continue being customers. Lots of holiday purchasers buy iPhones.


$100 price drop. Fewer complaints from early adopters; most continue to buy Apple products as usual. Fewer holiday purchasers buy iPhones due to the higher price, but there's more profit per unit.

Hmmm, Apple planned this all along, huh? Hmmm... thinking... thinking...

Nah, I'm going to take credit for this one.

MarkMS
Sep 6, 2007, 03:30 PM
If this is true, then I for one will be an Apple fan once again!

$100 credit or not, the iPhone was worth every penny back on 6/29. I still love Apple, still a big fan, and was never really upset at the price drop. Just as he said in the open letter, the technology sector is a bumpy road. I was fully aware that the price was going to drop. It just comes with the territory of being on the bleeding edge of technology.

Even though I will be taking this credit, it will taken more as a thank-you from Mr. Jobs and not as an apology. He and his company does not have to apologize. They just want to increase the user base.

Even though you NEVER lost me as a loyal customer.

Thank you, Apple!

gibbz
Sep 6, 2007, 03:30 PM
I have read through all of the 1500 or so posts about the iPhone price drop.
I myself purchased my iPhone 17 days ago. I think if anything, I had more of a reason to be "upset" than any of the iDay people. I mean they had it about a month and a half longer than I did. I was 3 days out from being covered by the 14-day return policy. However, I was not really upset and here is why. It is really quite simple and logical.

I understand the 33% price drop after 2 months was shocking since Apple has routinely kept price points the same while increasing technology. However, realize this is NOT the computer industry we are dealing with, it is the phone industry. Prices, technology, and incentives change much more rapidly. This is what happens when Apple removed the "computers" from their name. They are branching into other fields and we can no longer bank on their practices remaining the same across the board.

I offer this to you for consideration. I think it is clear that Apple will offer a 16GB iPhone soon. They likely haven't due to limited supply of NAND flash. So think back to release, we had a low-end iPhone for $499 and a high-end iPhone for $599. Now assume that in the next month or two they release a 16GB version. That would mean we once again have a low-end model and a high-end model. Except this time they are 8GB - $399, 16GB - $499 (maybe). So essentially Apple would have reduced the price points for the low and high-end models by $100 each. This isn't so bad. They have continually kept computer price points level while increasing technology. This is essentially what Apple did with the iPhone except they lowered the price to include more customers (this is quite reasonable).

So I think people just need to sit back and realize they didn't get screwed. If indeed a 16GB version is released at $499. That means your high-end model was $100 more than the new high-end. That is okay though because Steve just comped us the $100 with his offer today. So all is right with Apple and everyone just needs to adjust to the fact they are selling products other than computers. Just think logically.

Thanks Steve for this generous offer. His foresight to appease angry customers, while misguided with said anger, is invaluable to Apple stock holders and the corporation.

totolad
Sep 6, 2007, 03:30 PM
I think you are all well lucky over there! Anyways, my Grandad who was a great man had a saying, "Pioneers always Pay"

bobrik
Sep 6, 2007, 03:30 PM
Yesssss Yesssss Yesssss
To All Those People Who Called Us Whiners

I LOVE YOU STEVE JOBS THANK YOU SO MUCH

LOL, just yesterday I was reading tons of "I HATE YOU STEVE JOBS! **** YOU SO MUCH!"; and today: "I LOVE YOU STEVE JOBS! THANK YOU SO MUCH!".

It shows a nice strategy: to please customers, you must first piss them off with some mistake, so that later you can surprisingly please them with correcting the mistake.

I wonder whether people would be so fond of this action if Steve announced the refund right at yesterday's media event. But he did not, he instead made early iPhone adopters subject to 1 day of intense psychological pressure and pissed-of-ness, and after this one of their anger, he totally turned the game around, making people who hated him love him. That's psychology in action.

Simply genius :)

I don't say it was his plan. But it is simply amusing to see this possibility of purely psychological play :).

zwida
Sep 6, 2007, 03:30 PM
Legend. Absolute legend. Now I feel obliged to buy an iPod Touch even though I don't need one. This is marketing at it's best.

Exactly. I think my wife has a surprise iPod gift to look forward to...:)

zap2
Sep 6, 2007, 03:31 PM
Wow...still happy, I got to return mine, and get 600 store credit(plus the tax!)...but this is still a welcomed move!

Peace
Sep 6, 2007, 03:31 PM
Good work, fellow iPhone early adopters.

We spoke loudly and ignored those trying to silence us as "whiners." I don't think Apple caved in- rather I think they realized it was the right thing to do. I'm not sure why it bothered other people that we were trying to gather some momentum, but this proves that it was worth it.

Further, this was a shot across the bow in a couple of ways to Apple. First, I think the market let them know that the iPhone price point was too high- so they reduced the prices. Second, we let them know that even as their most loyal fans and early adopters, we're not completely brainwashed fan boys. We know where the line is.

Not to bust your bubble but this was planned..

Anybody remember the last quarterly conference call where they said due to a "transition" profits would be lower for the Sept. Quarter? ;)

p0intblank
Sep 6, 2007, 03:31 PM
This is awesome news! I'm so glad Steve Jobs responded to the customers. Can you say "money towards Leoaprd!"? =P

matznentosh
Sep 6, 2007, 03:33 PM
Too bad Jobs didn't think of doing this at the announcement yesterday. THAT would have been an incredible publicity coup.

"Oh, and by the way, now that we are dropping the price of the iPhone, we're going to reward all our loyal iPhone customers with $100 early adopter bonus!"

psychofreak
Sep 6, 2007, 03:33 PM
This is awesome news! I'm so glad Steve Jobs responded to the customers. Can you say "money towards Leoaprd!"? =P

Or even "Money towards a Mac", thus gaining Apple even more $$$ :)

AirmanPika
Sep 6, 2007, 03:34 PM
Meh the more I think about this the more I see through the distortion field. Jobs' little PR stunt just made them a massive profit. $100 discount for buying an iPhone from apple. Grand. Now as this thread shows people will be flocking to apple to buy iPods and Computers. Of course this may also show how much markup on every other product they sell. Apple will be making $150+ on the majority of people now instead of losing customers.

They didn't do anyone a favor, they just suckered the fanboys again is all.

tgildred
Sep 6, 2007, 03:34 PM
*$100 credit good towards purchase of the iPod Hifi only.

:)

colinmack
Sep 6, 2007, 03:35 PM
Very crafty, eh? :p

So, this will "cost" :apple: something like 500,000 * $100 = $50,000,000, eh? I am assuming that there are 500,000 phones sold that will be eligible. $50 million seem like a lot of money for an "advertising" campaign. But then again, 100% of this money comes back to :apple: in sales. But the exposure out there is immense! Much more than if they had run TV commercials and print ads. Money well spent. Go The Jobs!

Will cost even less to Apple, as they only have to account for *their* costs, not the retail cost - the margins/profit are a wash. So let's say people use the store credit for higher-margin items (100% markup for accessories isn't uncommon), then that $50M may only actually cost Apple $25M.

Then if not everyone takes advantage of it, could be only $15-20M...all of a sudden this is pretty cheap publicity for Apple, and creates tons of happy evangelistic customers. Not a bad score, all in all...

Abraxx
Sep 6, 2007, 03:35 PM
I guess according to you, Apple and Steve spent countless nights in the back room and planned all of this? Guess they had more time on their collective hands than I even thought!!

Funny with all the pissed off people yesterday, there were what? 59 pages of whiners? And today there are only 8 pages saying thank you!

We love to bitch about Apple and deflame Mr. Steve Jobs, but the same people as so ungrateful they can not say thank you!

Why do you think it took hours?
You are counting pages of whiners in a forum?
Yes people tend do what they are told to do. :)

tkidBOSTON
Sep 6, 2007, 03:36 PM
Meh the more I think about this the more I see through the distortion field. Jobs' little PR stunt just made them a massive profit. $100 discount for buying an iPhone from apple. Grand. Now as this thread shows people will be flocking to apple to buy iPods and Computers. Of course this may also show how much markup on every other product they sell. Apple will be making $150+ on the majority of people now instead of losing customers.

They didn't do anyone a favor, they just suckered the fanboys again is all.

Geez...
Damned if you do, damned if you don't, eh?

iSee
Sep 6, 2007, 03:36 PM
Thank you Steve! I can swallow a $100 price-drop (effectively) without bitterness--the $200 made me want to gag.
:D:D:D
Heh, giving the $100 as store credit actually works in my favor since I'm "not allowed" to buy any more stuff for a while...

Thanks again, Steve!

freddiecable
Sep 6, 2007, 03:38 PM
Let's do some modest calculation:

500 000 x 100 USD = 50 000 000 USD (or probably more) :eek:

Cameront9
Sep 6, 2007, 03:38 PM
You got to be freaking kidding me. This is unheard of in the business world, this one tells you how much they must be making on the iphones, and two how many people were really so upset about this.

Seems like NO ONE remembers that when Aperature had a price drop Apple did the exact same thing.

50548
Sep 6, 2007, 03:39 PM
YAY!:apple::D:D:D

:p TO ALL THE HATERS who tried to make us feel bad yesterday

I wonder if there is ANYONE STILL OUT THERE not thinking that SJ is THE BEST CEO EVER in the history of modern corporations. Totally unnecessary by him or by any market standards; but he was still classy enough to throw the whiners a bone, as a PERFECT PR/CUSTOMER SERVICE MOVE.

AWESOME, SJ, JUST AWESOME.

A new iPod will be DEFINITELY on its way home soon for me...no wonder I ONLY buy Apple. You guys ROCK!