8GB iPhone Price Drop, 4GB iPhone Discontinued

[rcfa]

Yes, but...

I'm not mad at Apple lowering the price. That is to be expected, and that's the way of high-tech. HOWEVER, going from 600 to 400 is a 33% price drop, and that essentially within 2 months of the release of a brand new product and technology, without lowering the product in the food chain, or having some massive quantum leap in technology that would lower their costs significantly, and that with a produce that requires a 2 year lock-in and isn't subsidized by the carrier?

It is not the price drop, but the massive percentage that makes people feel like they were had. After all, there isn't a sales slump right now, and the phone did have some childhood diseases.

If Apple had dropped the price by $50-100, only few people would feel cheeted. Even if they had dropped it by $150 and at the same time would announce a newer model with UMTS and/or 802.11n, people might not feel cheated. Or if they had lowered the price of the 8GB model to the price of the 4GB model and then started selling a new 16GB model at the former price point of the 8GB model, etc. people wouldn't by and large feel cheated.

But if the same thing, just a few weeks old, drops 33% in price, and that on a product where Apple earns on top of the original sale monthly fees collected from AT&T, then you have to feel ripped off as a consumer.

On the other hand: early adopters of Aperture were given a $200 Apple Store coupon when Aperture's price dropped from $499 to $299, so if the reaction from early adopters is negative enough, I wouldn't be surprised if Apple would make a similar deal for the early iPhone adopters. Or they might give a way free iPhone BT headsets for all who bought the phone at the original price, or...

So: make your opinion known to Apple http://www.apple.com/iphone/share/, and then wait to see if anything happens...

Heck, it's the best you can do.

 

[MaximusAurelius]

Mod note: Please keep it civil. If you're not mature, pretend to be. This is my second note in this thread. If I add a third, it'll be to close the thread.

I am as mature as it gets, thanks for the reminder though.
My point is far more bold this way, because many of those who argue for the price murder bring up redundant false arguments. Some of which, as you noted, are immature by themselves. They say that to fight the devil, you gotta be one.

I look back at the new posts and then at my post above here and realize that there is no real other way to rattle out the argument fallacies and blindness a lot of iPhone-wannahaves spew here.

 

[Scottgfx]

We defended Apple and the high price they charged. We are now laughingstocks.

Wow, you have some severe issues regarding your self image. I'm only laughing at you now because your whining in a public forum about a phone that no one forced you to buy.

I bought the phone on the Saturday after the introduction. You know what? It still works. I wasn't a "beta tester" because its always worked. I advertise Apple because I believe in their products *and* the people around me are genuinely interested.

Perhaps you would have been happier with a Treo? Nah, you'd be complaining that Palm "denied" you the Folio! Class Action Suit against PALM. People should demand their Folios!!!!!

 

[FF_productions]

Come to think of it, the 4 gb iPhone just had to go at this point.


What would it have been priced at?

299? That's the same price as an iPod touch, I'm sure people would take a fully functional iPhone with half the space than a iPod with touch screen and all the other cool stuff.

Apple is looking for the best way to make $$ in the end, the 4 gb iPhone wasn't doing anything.

With this early price-cut, I'm starting to think about the iPhone now.

 

[MaximusAurelius]

Wow, you have some severe issues regarding your self image. I'm only laughing at you now because your whining in a public forum about a phone that no one forced you to buy.

I bought the phone on the Saturday after the introduction. You know what? It still works. I wasn't a "beta tester" because its always worked. I advertise Apple because I believe in their products *and* the people around me are genuinely interested.

Perhaps you would have been happier with a Treo? Nah, you'd be complaining that Palm "denied" you the Folio! Class Action Suit against PALM. People should demand their Folios!!!!!

Dude, WTH are you talking about?
Forcing has nothing to do with it. A company just can't ethically release a revolutionary item that will be cut in price so drastically after 60 days from its release. Technically speaking 45 days for those who are not eligible for an exchange. Dude, does that seem FAIR to you?

It's not like it's a superior version. It's not like it's an enhanced model. And even then, it would have been a bit trickstery, but understandable. It's the same thing only much cheaper and far more affordable for the public, while the 45 first dayers are left empty pocketed. Not everybody is a blind geek, sir.

 

[noone]

Wow, you have some severe issues regarding your self image. I'm only laughing at you now because your whining in a public forum about a phone that no one forced you to buy.

I bought the phone on the Saturday after the introduction. You know what? It still works. I wasn't a "beta tester" because its always worked. I advertise Apple because I believe in their products *and* the people around me are genuinely interested.

Perhaps you would have been happier with a Treo? Nah, you'd be complaining that Palm "denied" you the Folio! Class Action Suit against PALM. People should demand their Folios!!!!!

1) My self image is just fine, thanks.
2) I am not whining, I am stating my opinion and, apparently, the opinion of many other angry early adopters.
3) No one did force me to buy the phone. I bought it on my own accord. That doesn't mean that I have to like a 3% price drop in a brand new, unchanged product 2 months after it was released.
4) My phone still works also. I never said that it didn't.
5)I too believe in Apple products. Don't get me wrong there. However, people told me that I was crazy to pay that much for a phone that would drop in price shortly. (I knew a price drop was inevitable. Just not this soon or this drastic.) I told them that that is not the Apple style and that they didn't drop prices like that. They proved me wrong.
6) I would not/ do not want a Treo thank you. The Folio has nothing to do with anything as it was never released or sold. No one but Palm lost money on it.

 

[Gen3tix]

I'm hoping to pick up a 4gb iPhone before they're gone completely. For 299, I think it's one of the best deals if you can get one. Sure I could get an iPod touch for the same price with twice the memory. However, 8 gigs still wouldn't be enough for my music collection, so it's not like I'd be able to keep all my music on iPod touch anyways. 4gigs would be enough for a good playlist.

So hard to make a final decision.

 

[psingh01]

It is called supply and demand. There wasn't enough demand at the original price point so they dropped it. It is absurd how people angry that the price was dropped. You weren't SCREWED out of anything! If you found $600 to be an acceptable price then, why is it not now?

Sure you can be "angry" that you didn't get a better deal...but it is ALL YOUR OWN FAULT. Nobody owes you anything.

On top of that Apple is giving some people $200 refunds which I think is great. It is a good faith showing by them and by no means their obligation.

I don't own an iPhone. I don't want a contract and I don't like the small capacity either. I'll get one once it can replace my current iPod. Until then my 2.5 year old nokia will work fine

 

[bwburrell]

Anybody know if the iPod touch will be able to sync contacts and calendars BACK to iTunes (and into Address Book/iCal)? Would be a little more useful if it could do that and maybe have 'To-do Lists' when 10.5 comes out...maybe a notes application or something??

 

[MaximusAurelius]

Those of you complaining about the "whiners", especially those who are repeating Jobs' party line about this being the "price of technology", really need to step back and take a look at this situation with a more critical eye.

This price change is not due to technology advancing, no matter what Steve says. There was not a new, better model introduced at the original price, with the feature sets just trickling down as they usually do with Apple products. No advancements have been made to the product line at all. This is simply Apple lowering the price to both a) make the item price competitive with the iPod Touch, and b) try to sell as many iPhones as possible during the coming holiday season.

Apple executives mention in this article that the price drop had been planned "long ago". In short, Apple knew that they were going to drop the price on the iPhones as part of their sales strategy before it was even released.

This blows out any hope Steve Jobs' statements have of ringing true.

The issue here is that Apple products define themselves by being products people love. For their ease of use, their attention to detail, for the notion that Apple "makes product we ourselves want to use"; this is their strength as a company, and it is why they have such an evangelical fanbase. People sell their friends and neighbors on Apple products because the experience is great, but also because we all support the philosophy behind making this end user experience painless. We all know Apple is a company, but they seem to be the only company that is actually on the side of the user.

With this move, however, they have quite shamelessly revealed an abuse of that customer loyalty. They've openly said "all of you passionate users that love our company, that support our products, that encourage people you know to buy our products and switch -- we're going to take advantage of you. And then we're going to tell you to your face that you need to suck it up."

Apple priced the iPhone high to give it the aura of a luxury item, and to reap maximum profit from the customers that were willing to pay for it. Apple, and Jobs, justified the original cost of the iPhone in the media, knowing full well they would be dropping the price later.

It was a con game, plain and simple. Apple showed the cold mechanical business apparatus behind their image, and for many of us, that conflicts with the feelings we have about the company in the first place. It conflicts with many of the reasons we like the company philosophically.

Lately, Apple has liked to position themselves as the friend of the consumer in opposition to the "evil record companies". About six months ago there was a story that surfaced, how the musician Trent Reznor had been on tour in Australia, and was shocked to find his latest album was priced at almost twice the cost of other albums on his label. He spoke to a Interscope/Universal exec about this, and was told the label charged more for his records because they knew his fans were passionate and loyal enough to pay it without question. Reznor was enraged, and made quite a stink in the media about it.

That is why today is frustrating. Apple has behaved just like the greedy record companies they claim to fight against, and have been happy to take advantage of its customers for their very love of the company.

Any long term Apple fan must admit, this is a sobering turn of events. I hope Apple have the respect for their customer base to right this situation.

Very very well said. Although, too soft of a post. With how Apple turned out to be I bet they still have the conscious to roll their eyes away.

 

[Rychy]

Bought two on release day in Oregon from apple store in pioneer place.. Someone on here said that lynnwood, wa store (alderwood mall) was doing refunds regardless of the purchase date.

I called to verify (20 minute drive) and they said they were and it was the store managers policy. I went there, got both mine refunded and left happier.

The person who refunded me was a regular store employee, not a manager. She even remarked if I was there for a return on the phone. When I inquired if this was a company wide rule, she said she was pretty sure it was. I said that another store I called before I came up wouldn't do it. Then she said, well its our policy.

I was happy to get it.

That's the store I bought mine, I called them three times throughout the day and no one would budge, even the manager said they were sticking to the 14 day policy...

 

[jeffyhow]

Oh, please -- all you iPhone-wannahave smack mouths -- you didn't expect this shocker. I've worked my butt off to be able to afford an iPhone. I've been expecting it for a whole f 7 months since Jobs showed it off on January this year. I especially chose the 4G iPhone just because another extra $100 would mean I value greed over life necessities like rent. You have to admit, this premature price murder did surprise some of you f dolts. Even your slimiest wishes for your iPhone-owner friends didn't scratch this vile move by Apple.

...

The iPhone made it difficult for you to afford rent and you bought one. Who is the dolt? There is something wrong with this picture.

 

[3.1416]

Dude, WTH are you talking about?
Forcing has nothing to do with it. A company just can't ethically release a revolutionary item that will be cut in price so drastically after 60 days from its release.

Please explain why Apple is ethically obligated to sell you an iPhone for less than you're willing to pay for it.

 

[jcammo123]

I speak on behalf of iphoners prior to the price drop....
yes it would be nice if we received some kind of credit for the being the early birds...
realistically, however, it will not happen...

but dont u think having the iphone these past two months was an ooberly cool experience?
everyone went in awe the moment you pulled it out...

if anything...
at least we can appreciate our iphones $200 better then any of these 9/5 (and beyond) iphoners ever will...

excuse me.
:: picking up the shattered pieces of his dignity ::


at least we have that much...

-_-

 

[MaximusAurelius]

It is called supply and demand. There wasn't enough demand at the original price point so they dropped it. It is absurd how people angry that the price was dropped. You weren't SCREWED out of anything! If you found $600 to be an acceptable price then, why is it not now?

I found $500 dollars after working my butt off and waiting 7 long months.
45 days later, and I purposefully say that because if I bought it more than 14 days ago I'm screwed, this whole thing gets a dramatic price cut. What the in hell supply and demand are you talking about exactly? of out the roof sales within these 60 days?!?

Sure you can be "angry" that you didn't get a better deal...but it is ALL YOUR OWN FAULT. Nobody owes you anything.

GFY. Apple legally doesn't owe me, but it is unheard of that this price murder comes in after 60 days. They definitely owe me some compensation.

On top of that Apple is giving some people $200 refunds which I think is great. It is a good faith showing by them and by no means their obligation.

Where, when? It is maybe local, if at all. And if they do it, that's appropriate and totally fair. It's beyond chivalrous. It's the right thing to do. I've called 1-800-myapple and zilch. Same story, same "screw you" 14 days BS as in every Apple store 50 miles around me.

I don't own an iPhone. I don't want a contract and I don't like the small capacity either. I'll get one once it can replace my current iPod. Until then my 2.5 year old nokia will work fine

Who give a rats? Does your contemporary satisfaction with your own world makes it a valid argument?

 

[BKKbill]

Oh, please -- all you iPhone-wannahave smack mouths -- you didn't expect this shocker. I've worked my butt off to be able to afford an iPhone. I've been expecting it for a whole f 7 months since Jobs showed it off on January this year. I especially chose the 4G iPhone just because another extra $100 would mean I value greed over life necessities like rent. You have to admit, this premature price murder did surprise some of you f dolts. Even your slimiest wishes for your iPhone-owner friends didn't scratch this vile move by Apple.

Now, stop using this "technology-business-model" BS which you tie up as you being "smart and patient lol!1!" while iPhone owners are raving frenziacs who can't see a foot ahead. We all expected a price drop eventually. Nobody argues against it. Otherwise, we wouldn't have purchased the iPhone to begin with and would have waited -- kind of like you chimps.

However, apple has done the undoable because it's so unbelievably abrupt and sharp; and those premium fees for enjoying a new technology sooner? Yeah, my @SS.

A company, especially one held in high business standards like Apple, just can't trash it's most loyal fan populace and new comers by obsoleting one version of a brand new released product and then insanely chopping the price off from the other within merely 60 days past a first time ever launch.

They should have kept the exact same initial price, if not maybe $49.99 less. But Apple revealed its' greedy corporate-kock that aims to get 10 million users by next year, by all means necessary. And then you go, "but Maximus, legally they can LOL!1!" Yes, chimps, legally they can -- but ethically it's pure garbage. Like your faces.

Besides, 60 days after, as in today, you too are falling in the "First Time Adopters" title. So doesn't all that prove that first 46 days owners totally deserve reimbursement, little chimps? If Apple doesn't come forth with a fair reimbursement, I whole heartedly hope all of you mockers will get mugged.

My goodness a little touchy are we. This won't get you feeling any better but knowing what I know today I think if it had been possible to get the iPhone on the first day of release I still would have bought it. Just to foreign over here I guess. So just give it a rest and listen to some tunes and remember you did get exactly what you paid for.

 

[Naimfan]

That is EXACTLY the right question......

Please explain why Apple is ethically obligated to sell you an iPhone for less than you're willing to pay for it.

As others have said, it was obviously worth 499 or 599 to you when you bought it. What changed?

 

[mrrydogg]

My Letter to Apple

Dear Apple,

As a loyal customer and Mac enthusiast, I am extremely disappointed by today's news. Having paid full price for my iPhone not more than 2 moths ago, I am shocked that a price drop was announced so quickly. Not only was the drop in price surprising, but the amount in which it dropped was staggering to say the least. I demand an explanation.

In the past few years I have spent upwards of $10,000.00 on Apple products. I live, eat and breath your companies hardware and software. I am constantly in awe of your innovation and design. Today though, I am angry. Having just read of your great success in outselling all other smart phones last month and shipping your one millionth iPhone soon, I am dumbstruck by the price drop announcement. I am sure many will appreciate the drop, as a new customer, I am sure that will lure them even more to the iPhone. But what about the original users? What do we get out of this?

Not even Apple can deny that a extremely high percentage of initial iPhone purchasers were probably Mac enthusiasts who have purchased and supported your products of the years and decades before this. Probably the same people who both sing your praises and defend your attackers with the passion and verve not seen by a lot of other companies users. For this reason I feel it is appropriate that we are compensated in some way for this landmark decision made today.

I feel that a Apple store credit for $200, an iTunes gift card, a free iPod nano, a rebate for $200, a free Apple Care contract for my iPhone or free copies of both iWork'08/iLife'08 and Leopard are all acceptable solutions to this dilemma. Believe me when I tell you that their are a lot of angry iPhone owners right now. Action is not only necessary on Apple's part, but will be demanded by a vocal consumer base.

Let me finish by saying, I understand the electronics business, I understand price reductions and I understand the reasoning for this drop in terms of attracting new customers and speeding up Apple's share of the cell phone market. All that can't explain why the proper price point was not decided upon before the June release of the phone? Why any business would drop the price of a phone that is selling as quickly as it is? Why, after 2 months, has no significant upgrades to the phone become available? Why, after only 2 months have you decided to alienate 1 million users? Are our voices even being heard?

Please respond to my concerns in a timely manner. I love Apple, I love the products and will continue to use the ones I have. I must say though I will think long and hard before ever purchasing one of your new products for the foreseeable future.

I am a good and loyal customer Apple. Today though, I might of become a former customer.

Sincerely

 

[bartelby]

Dude, WTH are you talking about?
Forcing has nothing to do with it. A company just can't ethically release a revolutionary item that will be cut in price so drastically after 60 days from its release. Technically speaking 45 days for those who are not eligible for an exchange. Dude, does that seem FAIR to you?

"Fair" has nothing to do with it.
A company can do what the like with their products and prices.

 

[Poll Smoker]

I think Apple should do nothing.

If there was a shortage of flash memory and they had to raise the price $200 and asked you to come back and pay the difference would any of you?

Didn't think so. If you wouldn't you are a hypocrite.

So, you're implying that the $200 price cut was due to the cost of flash memory?

Didn't think so. It would make you an idiot.

 

[GetSome681]

OMG!!!!! If apple doesn't give me most of that money back **** I might aswell commit suicide.. Dam I spent a whole months rent! I would of bought groceries to feed my kids!!! **** apple and Steve jobs.... Shot at least gives some free songs!!!!!!!! Bitches!!!!!!

If your purchase of an iphone affected your finances to the point where you can't feed your kids, maybe you shouldn't have bought an iphone in the first place.

It sucks to have paid $200 more, but you all thought it to be worth $599 when you bought it. Apple is free to charge what the market will bear. Plenty of people felt that it was worth $599 at the time, so why can't Apple charge that? Obviously, not as many people still see things this way which is why they are having to cut the price to move units. This is very simple supply and demand. Complain all you want...in the end, people need to be more responsible with their financial decisions. The average American purchasing behaviors are shifting towards the 'I must have it NOW', which tends to bring them down a path of debt. Learn some responsibility, and if you think a product might not be worth it's cost, then don't buy it right away and wait for it to get cheaper. Everything ALWAYS gets cheaper. Stop thinking that you are entitled to have the newest gadget 'today' at the price of 'tomorrow'.

Also, have any of you ever purchased a newly introduced high-end cell phone before? They are always super expensive at first...and the next thing you know they are free after rebate with a new contract....and then they're giving away 4 of them at a time. Heavily discounting a recently released product is nothing new when it comes to high-end cell phones.

 

[Oblio]

Covering R&D Costs

It seems to me that the iPhone probably had the highest R&D costs of any Apple product, and that they had to charge a premium price initially to make sure they would cover those costs. Once it became clear they would cover those costs, they could lower the price of the product dramatically because they only needed to cover the cost of parts and manufacturing going forward. When you include the R&D, I don't think they were making an outrageous profit on the early sales. Also, I think it was pretty clear from the beginning that $600 was a very high price for a phone and had to come down a lot as soon as possible to be able to compete in the phone market in the long run.

 

[Naimfan]

They definitely owe me some compensation.

Max--

First of all, please take a deep breath and calm down.

Now, explain why they definitely owe you some compensation? Because you worked hard, bought one the day it came out, and got to use it for two months before a price drop? The reasoning behind your claim escapes me.

Sorry you feel the way you do, but please--you made a conscious and perfectly rational choice to save up and buy one the day it came out. Apple owes you nothing.

Bob

 

[Poll Smoker]

How silly it is for people to think they should get a rebate for buying something on launch day.

Really? Are they still silly when they bought it 15 days ago?

 

[DCAppleDude]

From The New York Times

On Wednesday, Apple executives insisted that the price cut had been planned long ago and that the strategy had been conceived in part to keep the iPhone’s pricing in line with its new iPod Touch, a music player that looks like the iPhone but lacks the phone-calling ability.

http://www.nytimes.com/2007/09/06/technology/06apple.html