Official iPhone Refund Policy Tomorrow?

[MacRumors]

Apple's unexpected $200 iPhone price drop caught many of the iPhone's early adopters off guard and has generated a lot of animosity across ours and Apple's forums.

Those of you who have bought an iPhone in the past 14 days are eligible for a price protection guarantee... but if you bought before then, you may be out of luck.... or are you?

According to Veronica Belmont, she was told by a friend that they were able to get a $200 refund from his local Apple Store despite purchasing his iPhone 2 months ago. This was, of course, after spending an hour on the phone.

Of interest, he was also warned and that as of tomorrow there would be an official policy in place regarding iPhone refunds... which sounds like they'll lock down the 14 day refund policy, so if you want a refund -- now's the time.

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[nismo]

hopefully this will make a lot of people happy if they refund everybody.

[coolbreeze]

Um, they are not going to refund everyone who bought on launch day, weeks ago, etc. If any, maybe those within the 14 return window, since they could just return/rebuy/cause a stink if Apple doesn't accept a return.

If AAPL refunded everyone's money, that would set a dangerous precedent. Any time a price falls on a product, there will be mobs of people saying "well I paid $400 last month and now it's cheaper, etc." No way Apple will open this can of worms.

[rikers_mailbox]

Originally Posted by coolbreeze

If AAPL refunded everyone's money, that would set a dangerous precedent. Any time a price falls on a product, there will be mobs of people saying "well I paid $400 last month and now it's cheaper, etc." No way Apple will open this can of worms.

Actually, it wouldn't hurt AAPL's bottom line (I assume you were referring to stock price). Don't forget that iPhone sales are recognized under subscription accounting on a straight-line basis over a 24-month period. A price refund would NOT negatively impact past earnings, only future.

[aerospace]

you do realize that refunding 1million phones for 200 each is 200 million dollars

apple may be nice but for 200million they should just let people be mad a couple of days

[longofest]

Originally Posted by coolbreeze

If AAPL refunded everyone's money, that would set a dangerous precedent.

The precedent has already been set.

Originally Posted by aerospace

you do realize that refunding 1million phones for 200 each is 200 million dollars

apple may be nice but for 200million they should just let people be mad a couple of days

Personally, I don't think Apple needs to refund the entire $200 per iPhone. $100 would go a long way to soothing people. Assuming they go with $100, if they do what they did with Aperture and they give the "refunds" as Apple Store gift certificates, the bottom line would be less than a $100 million loss, because Apple would be making money on the purchases bought on the gift certificate.

Either way, it may be a necessary cost for Apple to take, given the reaction people are having. In the end, Apple's profits are extremely high on this product, and they will still make a ton of money. $100 million or there abouts may seem like a lot, but they are probably going to make close to if not over $1 billion this quarter.

[findpankaj]

Originally Posted by aerospace

you do realize that refunding 1million phones for 200 each is 200 million dollars

apple may be nice but for 200million they should just let people be mad a couple of days

I agree with you...welcome to apple torture cell. I was thinking day and night about iPhone and finally thought of buying a 500 dollar sony ericsson P1i. But now I am buying my brand new iPhone - 4 GB.....for me apple rocks...saved me serious 200 dollars

[rikers_mailbox]

yes please! I'm feeling a bit burned by Apple. Is this how you treat devoted follo... err, i mean ... loyal customers?

[jt2ga65]

At this point, I would be surprised if it was not a big middle finger at the early adopters. Hey, I'm still willing to be converted to an Apple fan again, but I'm stinging at the extra $100 a month for the iPhone.

-jt2

[ephix]

Originally Posted by jt2ga65

At this point, I would be surprised if it was not a big middle finger at the early adopters. Hey, I'm still willing to be converted to an Apple fan again, but I'm stinging at the extra $100 a month for the iPhone.

-jt2

what does that $100 extra a month have anything to do with the price drop?

[Bjerre]

Maybe Mike Tyson will be $200 richer leaving him only in $9,999,800 debt.

[technicolor]

Hmm this is interesting.

[hard-case]

Well, if you read the actuall post from Veronica Belmont, it sound like the 'policy' will be nothing more than a restatement of the 14 day price policy, or at the very, very most a codifying of the 'August 1st/4th or later' as has been floating around the forums.

C'est la vie!

[OneTraveler]

Come on people! We all KNEW there was going to be a price drop at some time. When you want the latest and greatest, you are going to get burned on the price. That's just the way it goes. Pay more and enjoy it now, or wait and save a few bucks later. I wanted it sooner. $200 drop? Meh, I've enjoyed it $200 worth. If you are upset over it, maybe have some restraint on your purchases next time.

[millerrh]

The precedent has been set with what they did with Aperture. I sure hope they do this. Even if it is $100 it would show they care about their early adopters and the people who probably care the most about Apple.

[MacPhilosopher]

Originally Posted by millerrh

The precedent has been set with what they did with Aperture. I sure hope they do this. Even if it is $100 it would show they care about their early adopters and the people who probably care the most about Apple.

If these are the people who care most about Apple, then why do they want their money back?

[jeeb75]

I will get my $200 from Apple myself. Thank you Bittorrent. FU Apple.

[lawcomic]

At this point, Apple apologists sound like clueless spouses in an abusive marriage.

"Apple don't mean to hurt us, and it usually gives us nice things. It's my fault it screwed me over."

[corywoolf]

So glad I waited it out on getting a new iPod. I like the line up, but they really should have had a 160 GB touch iPod option. Nobody is going to buy the classic iPod, it will be fazed out in the next six months. Even with better storage capacity, nobody wants the body of an old iPod. The touch is the equivalent of the iPod Photo, in that Apple will drop the touch name and make it replace the classic iPod for good.

Originally Posted by OneTraveler

Come on people! We all KNEW there was going to be a price drop at some time. When you want the latest and greatest, you are going to get burned on the price. That's just the way it goes. Pay more and enjoy it now, or wait and save a few bucks later. I wanted it sooner. $200 drop? Meh, I've enjoyed it $200 worth. If you are upset over it, maybe have some restraint on your purchases next time.

Good point. I totally agree. I have a first gen. MBP that I am still very happy with, even though Apple made a double-layer dvd burner and FW800 standard just months later on the 15".

[derivativemusic]

A price refund would NOT negatively impact past earnings, only future.

However, reducing the price $200 has already affected the stock price. It's very weird, because it looks like desperation. And it looks like there's nothing new coming before next year, i.e. they have nothing new to sell for Christmas.

[shrimpdesign]

Originally Posted by derivativemusic

However, reducing the price $200 has already affected the stock price. It's very weird, because it looks like desperation. And it looks like there's nothing new coming before next year, i.e. they have nothing new to sell for Christmas.

Whey have tons of news stuff! iPod Classic, Nano and Touch. Companies always release their holiday stuff in the fall, not the winter. No more iPhone/iPod updates until 2008. Although I expect a major iPhone update with Leopard, note syncing, to-do list syncing, RSS (maybe?).

The iPhone price was high in June/July/August because demand was high. Demand for a $500+ iPhone has leveled out, and Apple's reinvigorating it. Supply and demand.


P.S. I got a $500 4GB iPhone. I'm happy with it. It was worth $500, and still is.

[matticus008]

Suck it up. You made a purchase on a depreciating asset in an industry with a steep price curve. If it wasn't worth the asking price, you would not have made the purchase in the first place; there's no excuse for choosing to enter into a purchase you don't find reasonable. Early adopters pay a hefty premium. It's the way the world works, and it's the way the world should work. People who want it the most get the opportunity to have it. They knew they'd have a limited supply. Launching at $399 wouldn't have made sense. They'd have been overrun, and that would be the complaint.

The Razr was $500 at release and they've been handing them out for free for months now. It rapidly dropped to $200 within a few months. My phone was $799 retail at release. It's now $249 retail.

If you really learned this lesson the hard way, welcome to the big kids world. "Punish" Apple with your departure as a customer (as if it matters), but you'll run out of companies to do business with in no time flat.

[aristobrat]

Originally Posted by matticus008

Suck it up. You made a purchase on a depreciating asset in an industry with a steep price curve.

Apple products don't typically get a 30% price cut 2 months after launch. For the last 3 years I've been buying 15" notebooks from Apple, they've always had a base model at $1999. New one comes out a few months later with better specs, my model depreciates, but the price of the new model remains the same.

Pretty much the same deal with iPods. They've adjusted some of the price points around over the years, but again, I don't recall any price drops 2 months after launch, and none that were 30% in one drop.

I think this is how a lot of folks expected the iPhone pricing to work.

[bretm]

Originally Posted by corywoolf

So glad I waited it out on getting a new iPod. I like the line up, but they really should have had a 160 GB touch iPod option. Nobody is going to buy the classic iPod, it will be fazed out in the next six months. Even with better storage capacity, nobody wants the body of an old iPod. The touch is the equivalent of the iPod Photo, in that Apple will drop the touch name and make it replace the classic iPod for good.



Good point. I totally agree. I have a first gen. MBP that I am still very happy with, even though Apple made a double-layer dvd burner and FW800 standard just months later on the 15".

Well, I sure as hell wouldn't buy any of their new products now, considering they'll lower the price 33% in 2 months. Especially if they sell well. What the f kind of thinking is that?

And yes, we knew they'd drop the price... when the next phone came out. More features, lower price. That's sort of the norm with tech gear. And maybe a small reduction in price after 6 months or a year of good sales to pay for R&D. 2 months of sales? It's bad PR, and fixing that bad PR with refunds will be good PR. Well worth the cost, especially if they refund with Apple store cash.

The only time I can recall Apple doing ANYTHING like this (dropping a price so quickly) was Aperture. And I was quite impressed with how they handled it.

[kcroy]

I also bought two on the launch day and I knew the price would come down. What can I say? I really wanted one. My frugal side told me to wait, but the techno-got-to-have-it side said "BUY TWO!"

I don't regret the decision and I don't expect a refund.

This has happened to me before with Apple products.

I can understand people being ticked off, but I think we all knew prices were going to come down. I admit, I didn't think there would be a drop this dramtic so soon, but I have really enjoyed the phone.\