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Old Sep 6, 2007, 02:07 PM   #1
sketchy
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iPhone price cut: Official response from Steve Jobs

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/

Last edited by Blue Velvet; Sep 6, 2007 at 02:23 PM. Reason: Added Steve's letter
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Old Sep 6, 2007, 02:10 PM   #2
Mxsix
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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
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Old Sep 6, 2007, 02:10 PM   #3
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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!!!!
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Old Sep 6, 2007, 02:10 PM   #4
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you guys are damn lucky. I hope that those who already received compensation don't abuse this.
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Old Sep 6, 2007, 02:11 PM   #5
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YAY!

TO ALL THE HATERS who tried to make us feel bad yesterday
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Old Sep 6, 2007, 02:12 PM   #6
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I agree. Kudos to Apple for caring about their Customers.
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Old Sep 6, 2007, 02:13 PM   #7
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Wow. That's sheer professionalism. Totally unnecessary. Very impressive. The Jobs done good.
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Old Sep 6, 2007, 02:14 PM   #8
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Looks like a reasonable response.

Kudos to Apple.
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Old Sep 6, 2007, 02:14 PM   #9
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good job Jobs
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Old Sep 6, 2007, 02:14 PM   #10
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That makes me happier than I thought it would. Thanks, Steve.
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Old Sep 6, 2007, 02:15 PM   #11
PlaceofDis
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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.
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Old Sep 6, 2007, 02:16 PM   #12
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Thanks Steve! You The Man
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Old Sep 6, 2007, 02:16 PM   #13
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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.
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Old Sep 6, 2007, 02:17 PM   #14
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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
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Old Sep 6, 2007, 02:17 PM   #15
jackc
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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.
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Old Sep 6, 2007, 02:18 PM   #16
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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
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Old Sep 6, 2007, 02:18 PM   #17
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Has Steve admitted he reads email from customers before?
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Old Sep 6, 2007, 02:18 PM   #18
Mgkwho
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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 .

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Old Sep 6, 2007, 02:19 PM   #19
billyripkin
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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.
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Old Sep 6, 2007, 02:19 PM   #20
jackc
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Has Steve admitted he reads email from customers before?
That's short for "other people read emails addressed to me"
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Old Sep 6, 2007, 02:19 PM   #21
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now that is what you call an excellent response - nice one Apple!!

all the way baby!
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Old Sep 6, 2007, 02:19 PM   #22
phil83
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Wow

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.
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Old Sep 6, 2007, 02:20 PM   #23
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If this is true, then I for one will be an Apple fan once again!
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Old Sep 6, 2007, 02:21 PM   #24
powerbook911
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Thanks Steve! Apple rocks.

I just hope those whiners who got refunds already don't get this too.
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Old Sep 6, 2007, 02:21 PM   #25
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This is amazing. I always knew why i was a loayal Apple consumer!

Thanks Steve Jobs!
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