8GB iPhone Price Drop, 4GB iPhone Discontinued

[noone]

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.

I believe that it was quite clear from the hype that surrounded it that they would cover their R&D costs. Heck, if they and introduced it at this price, the demand may have been even higher. I am willing to venture that a very large portion of their R&D costs went to the Multi-Touch interface. Since Multi-Touch is obviously intended to be used in more than the iPhone, why should they have charged their early adopters? They could have spread the R&D cost to the new iPod Touch as well. If it is as revolutionary as they say it is (and I believe that is is) then their R&D costs should not have been a big concern.

 

[sbb155]

it is so simple!

Don't you guys get it? It is soooo simple. Apple is owned by shareholders. Shareholders = apple's owners. yes, owners. And guess what, steve jobs does not OWN apple.. shareholders do. Mr. Jobs reports to the owners.

what do you think the owners of apple want? They want one thing - PROFITS. So, the higher price point was about profits. And guess what, the lower price is about driving volume, which also increases profits!

Are you upset about paying too much? Did you not realize that apple's reason for existence is to generate PROFITS for its owners? So if they milked you for the $200, guess what - that is their mission in life! Profits.

If you don't want a company to focus on profits then you will have to move to a state owned industry in another company. But apple's owners want maximum profit. Duh! It is totally about money. It always is about money - this is pure capitalism.

Look at the price of a mac pro processor over the last year.. The price has plummeted, yet aplle charges the same price for the computer. Why? PROFITS. It is apple's job to milk every dollar out of you.

 

[MaximusAurelius]

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.

I got my iPhone 21 days ago, so I was able to pay all my bills and own a 4G iPhone. I'm unharmed and all is well with me; I was very calculative. I didn't want to wait too long because my contract with Cingular was due on Sep' anyway. What else do I have to fall over to spoon feed you smartmouths? Would I have purchased one if I had known that the standard span of time for a price drop / update is 45 days? (60 minus 14 days blind grace) --

No. I would be buying one today then.

I've been going through lots of those "wrong-time over-price" cases with Apple before as I own a bunch of their cinema LCDs, Dual 2g G5, Powerbook 17" G4, iPod, a G3 iMac - almost all were purchased around the times of their updates - months past their release. Then it's expected that just about any day my newly purchased products are a "2nd gen" technology.

The fact you answered my post where I accused dolts of being dolts says everything.

 

[Poll Smoker]

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.

If you bothered to RTFT before posting your wisdom, you'd know that the price cut was planned in advance by Apple. It had nothing to do with "supply and demand" -- not that I think you even understand that concept.

 

[bluedevil14]

i dont understand the big problem with this... its a 200 dollar price-drop on the best phone in the world. I'm so glad I waited till my Verizon contract expired; it saved me 185 early cancelation and 200 bucks from the price drop.
Those early adopters need to take a chill pill and appricate the great product they have and were willing to pay that much money for.

 

[MaximusAurelius]

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

Bob,

I bought one just recently. A month and a half after it's release.

It's funny - would you really believe that a 45th day purchaser is still too much of an "early adopter" sucker like myself? I mean, if you got an iPhone 46 days after it's release, you'd fall in between the cracks to get refunded with a brand new double-capacity iPhone. Doesn't it seem like after 60 days you'd still consider iPhone owners as "early adopters"? I mean, whoever rushes out to exploit this deal tonight - isn't is weird they bash me and others as "early adopters"? What are they? Wise?

i dont understand the big problem with this... its a 200 dollar price-drop on the best phone in the world. I'm so glad I waited till my Verizon contract expired; it saved me 185 early cancelation and 200 bucks from the price drop.
Those early adopters need to take a chill pill and appricate the great product they have and were willing to pay that much money for.

"Those early adopters need to take a chill pill and appricate the great product they have and were willing to pay that much money for."

You too are an early adaptor, hypocrite. You're just three weeks behind me - how big of difference in technology span is that considering the product was first ever released a month before I got it? L.

 

[Naimfan]

Max--

My mistake--I was under the impression you had purchased one on release day. I feel for you, but some days you get the bear, and some days the bear gets you. This looks like one of the latter--just bad luck with timing on your part, all the more so because I don't remember seeing even a whiff of a rumor that the phone would drop pricewise.

I agree with Bluedevil14--a $200 price drop on the coolest phone in the world is a good thing.

Bob

 

[mrrydogg]

Don't you guys get it? It is soooo simple. Apple is owned by shareholders. Shareholders = apple's owners. yes, owners. And guess what, steve jobs does not OWN apple.. shareholders do. Mr. Jobs reports to the owners.

what do you think the owners of apple want? They want one thing - PROFITS. So, the higher price point was about profits. And guess what, the lower price is about driving volume, which also increases profits!

Are you upset about paying too much? Did you not realize that apple's reason for existence is to generate PROFITS for its owners? So if they milked you for the $200, guess what - that is their mission in life! Profits.

If you don't want a company to focus on profits then you will have to move to a state owned industry in another company. But apple's owners want maximum profit. Duh! It is totally about money. It always is about money - this is pure capitalism.

Look at the price of a mac pro processor over the last year.. The price has plummeted, yet aplle charges the same price for the computer. Why? PROFITS. It is apple's job to milk every dollar out of you.

Actually the higher price probably wasn't about profits. It is a well known economic/marketing strategy in order to limit actual demand. While the hype was great, the price was enough to eliminate most consumers in order for Apple to ship enough quantities. Now that the pipeline for creating iPhones has been established and they are being pumped out in high volume, Apple can reduce the price and meet the forthcoming higher demand.

Thats why it was planned, because its strategy.

 

[UKFletch]

Uk Rant Time

Ok, I watched the live blogs last night, I've read the threads, I understand the reasoning behind the price drop, and love the new iPods...

BUT <RANT MODE ON>

Where the hell is the iPhone release date in the UK? You can now buy, on the UK Online Apple Store, an iPod Touch (an iPhone without the phone) with a 3 day lead time.

Why no blooming phone? What are Apple/O2 (or whatever carrier has it) playing at?

I have gone from anticipation, excitement etc. to frustration and annoyance. My contract is up VERY soon and I was hoping to go for an iPhone. Now, I am looking at the N95 or similar.

I have almost had enough. Come on Apple, throw the dog a bone - we already pay a premium on prices here in the UK, although I know that the mobile phone contracts here seem to offer better value than in the US, but this is just stupid!

<Rant Mode HOLD>

UKFletch

 

[MaximusAurelius]

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

I already did.

Please explain why don't you think Apple should compensate buyers of a product in which the price tag was deliberately set ultra-high as an unknown experiment for a market reception and then chopped all the fat off for the real face value merely sixty days after a first-time ever release? (practically 45 days).

 

[mrrydogg]

Don't you guys get it? It is soooo simple. Apple is owned by shareholders. Shareholders = apple's owners. yes, owners. And guess what, steve jobs does not OWN apple.. shareholders do. Mr. Jobs reports to the owners.

what do you think the owners of apple want? They want one thing - PROFITS. So, the higher price point was about profits. And guess what, the lower price is about driving volume, which also increases profits!

Oh yeah, and I forgot to mention. Apple's shareholders......sent the price of their stock down %5 on the news of the iPhone price cut today.

They want profits, yes, they also want customer retention and smart business moves to be made.

 

[onionperson654]

A $299 phoneless iPhone: 8g iPod touch vs 4g clearance iPhone

Contrary to the title of this thread, the 4g iPhone is not yet discontinued, its for $299 on the clearance page, which is the same price as the 8g ipod touch. While the iPod touch seems nice, the iPhone has more functionality even without the phone.

So, what do I and everyone else buy when faced with this choice (assuming no sim-unlock?

Tradeoffs (bold is winner, pardon formatting):

iPod Touch____iPhone
8 gigabytes______4 gigabytes -------8 gigabytes means much more video
unlocked_________locked ------------Touch doesn't worry about unlocking/software upgrades/support
Wait 3-4 weeks___Ships tomorrow ---'nuff said
________________Camera
________________Bluetooth ---------Only minor use without cellphone
________________Embedded email --Very convenient
________________More apple & 3rd p. apps --could iPod touch be getting these?
Higher video output


Lots of thing to weight, but I think the primary questions (beyond the personal of storage space) are:

1.) For those who have unlocked their phones, what is it like, and what is support/software updates/etc. like on a “pirated” phone?
2.) What is the situation on apps? Do people think Apple apps such as email will be put on ipod touch eventually, or ported over by third-parties? What about third party apps?

I think that if it was just an issue of sacrificing 4 gigabytes, I could live with 2 gigabytes of video transferred every 2-4 days, and those that need more space would be considering a 16 gig ipod touch/8 gig iPhone, so that isn’t the overwhelming issue.

The biggest question for everyone making this decision is are the extras on the iphone (ships tomorrow, many apps for a better internet device (arggg, put this on the ipod touch), a camera, and Bluetooth for those who need it worth the trouble of dealing with a hacked iphone and the fear of a software update or bad support making it useless (yikes)?


Personally, I guess I want an phoneless iPhone, and don’t know whether an iPod Touch or hacked iPhone best fits the bill.

 

[MaximusAurelius]

Max--

My mistake--I was under the impression you had purchased one on release day. I feel for you, but some days you get the bear, and some days the bear gets you. This looks like one of the latter--just bad luck with timing on your part, all the more so because I don't remember seeing even a whiff of a rumor that the phone would drop pricewise.

I agree with Bluedevil14--a $200 price drop on the coolest phone in the world is a good thing.

Bob

Like I said, I'm an early adopter as much as you if you got it tonight, and as much as a person who bought it couple of months back. It's just disgusting that not even past 90 days, a common basic warranty time span, it's dropping such a whopping price.

 

[PCMacUser]

While this is an unusual step for Apple to take in terms of pricing as a company, it's also unusual for Apple to be designing and selling phones. There was no precedent to their behaviour with regards to consumer mobile phones. Nobody can really complain.

I bought a new release DVD for NZ$35 a couple of months ago. Now it is NZ$15. Who's surprised? Nobody. Everyone's seen that situation before and knows how it works.

The next mobile phone that Apple makes may retail for US$399. They might drop the price two months after its release. Who will be surprised then? Nobody.

You have your precedent. Now go home and cry to mama.

 

[mrrydogg]

Contrary to the title of this thread, the 4g iPhone is not yet discontinued, its for $299 on the clearance page, which is the same price as the 8g ipod touch. While the iPod touch seems nice, the iPhone has more functionality even without the phone.

I say get a refurbished 8GB iPhone for $349 and call it a day!

 

[MaximusAurelius]

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.

Million people did not know that. And they don't need to give a slight F about it. That's just proving a point, that Apple went low in order to pay off their R&D last months hustle -- assuming thats the reason behind that sly act.

 

[iEdd]

Wow, 49 pages of bitching about how much cheaper the iPhone is. Surely we all know by now that when apple releases something, anyone in the know should buy it in 1-2 months or WAIT until the next update. I also have no idea how you all (the whingers) post like 6 year olds, yet manage to sign the contract to get the iPhone (18?).
This happens with EVERYTHING. It's a simple process of progressive marketing. You milk the profits from each price point, then drop the price. It's no different from what has happened with the Sony PS2 for example. You have all had the hottest and best phone on the market before anyone else [in the world].
By the way, is there any release list or schedule on when different countries are scheduled to get the iPhone?

 

[Tazzy531]

I already did.

Please explain why don't you think Apple should compensate buyers of a product in which the price tag was deliberately set ultra-high as an unknown experiment for a market reception and then chopped all the fat off for the real face value merely sixty days after a first-time ever release? (practically 45 days).

I wish this applied in other markets too.

Next time I get on a flight, I'll ask every passenger how much they paid. If they paid less than I did, I'll raise a rant about how they overcharged me.

....

The question is.. How much do you think the iPhone is worth? The answer isn't a clear answer. It is a different amount for different people. Some people were willing to pay $1000+ to get it on the first day through eBay. Other people weren't. If it was worth that amount to you back then, it should still be worth that amount to you now.

Hey, I got the iPhone on the first day too. I knew that some day the price will drop. But to me, it was worth the money to get the phone.

Market economy, people. Capitalism. Live it. Enjoy it.

The point is, ladies and gentlemen, that: Greed, for lack of a better word, is good. Greed is right; greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit. Greed, in all of its forms, greed for life, for money, for love, knowledge — has marked the upward surge of mankind and greed, you mark my words — will not only save Teldar Paper but that other malfunctioning corporation called the USA.

Oh yeah, and I forgot to mention. Apple's shareholders......sent the price of their stock down %5 on the news of the iPhone price cut today.

They want profits, yes, they also want customer retention and smart business moves to be made.

Nope. Standard "Buy the rumor, sell the news"

 

[chr1s60]

If anyone is angry about this, there is a petition you can sign.

http://www.ipetitions.com/petition/iphonecompensation/index.html

It is worth a show. I know technology prices change, but this seems like Apple simply ripping off those who are so loyal to their company.

 

[kugino]

"Those early adopters need to take a chill pill and appricate the great product they have and were willing to pay that much money for."

You too are an early adaptor, hypocrite. You're just three weeks behind me - how big of difference in technology span is that considering the product was first ever released a month before I got it? L.

Bob,

I bought one just recently. A month and a half after it's release.

It's funny - would you really believe that a 45th day purchaser is still too much of an "early adopter" sucker like myself? I mean, if you got an iPhone 46 days after it's release, you'd fall in between the cracks to get refunded with a brand new double-capacity iPhone. Doesn't it seem like after 60 days you'd still consider iPhone owners as "early adopters"? I mean, whoever rushes out to exploit this deal tonight - isn't is weird they bash me and others as "early adopters"? What are they? Wise?

so tell me what the cutoff should be. 30 days? 45 days? 90 days? 1 year? you're upset that you fall out of apple's grace period. but you'd be fine if they expanded the grace period to include you. but then, why shouldn't the person who falls one day out of that new grace period be upset? no matter what apple does, there will be people who fall just a day or two or a week or whatever out of the grace period. they're being generous with 14 days, IMO.

or, are you upset that the cut in price came much earlier than you anticipated? well, i'm sorry for you but things like that happen all the time. just because the macs aren't price-reduced for 9 months or a year doesn't mean that the iphone would follow suit. different business model.

should you be upset that you spent $200 more on the iphone than it costs now? well, you can feel whatever you like. i get upset when i spend more on something and find it cheaper elsewhere later. but i don't blame the gap when they put my shirt on sale a week later...stuff like that happens all the time. but to blame apple and demand compensation? that's utterly ridiculous. sheesh.

If anyone is angry about this, there is a petition you can sign.

http://www.ipetitions.com/petition/iphonecompensation/index.html

It is worth a show. I know technology prices change, but this seems like Apple simply ripping off those who are so loyal to their company.

"ripping off?" how exactly are they ripping you off? because they lowered the price on something? did they give you a product that they claimed to be one thing but was really something else? how exactly did they "rip you off?"

 

[weckart]

I have gone from anticipation, excitement etc. to frustration and annoyance. My contract is up VERY soon and I was hoping to go for an iPhone. Now, I am looking at the N95 or similar.

<Rant Mode HOLD>

UKFletch

Chill. The expected date is Q4 in the UK, which can mean 31st December. If you have your heart set on an iPhone, then you will need to go onto Pay As You Go for the interim period when your contract expires. Otherwise, take a gamble with your existing phone on an O2 plan and hope that you can cross-upgrade for a pittance.

On the other hand, the longer you wait, the more chance you have of 32GB coming in as the higher capacity if flash memory continues to fall in price.

 

[mrrydogg]

so tell me what the cutoff should be. 30 days? 45 days? 90 days? 1 year? you're upset that you fall out of apple's grace period. but you'd be fine if they expanded the grace period to include you. but then, why shouldn't the person who falls one day out of that new grace period be upset? no matter what apple does, there will be people who fall just a day or two or a week or whatever out of the grace period. they're being generous with 14 days, IMO.

or, are you upset that the cut in price came much earlier than you anticipated? well, i'm sorry for you but things like that happen all the time. just because the macs aren't price-reduced for 9 months or a year doesn't mean that the iphone would follow suit. different business model.

should you be upset that you spent $200 more on the iphone than it costs now? well, you can feel whatever you like. i get upset when i spend more on something and find it cheaper elsewhere later. but i don't blame the gap when they put my shirt on sale a week later...stuff like that happens all the time. but to blame apple and demand compensation? that's utterly ridiculous. sheesh.

No matter how many people say "this happens all the time"....it doesn't. Not with Apple and certainly not by this much. Every major analyst who spoke today said they were shocked by the amount of the price cut. Some were not shocked in the timing, but ALL were very surprised that it was so steep.

Stop comparing cell phone companies to Apple.

 

[Tazzy531]

No matter how many people say "this happens all the time"....it doesn't. Not with Apple and certainly not by this much. Every major analyst who spoke today said they were shocked by the amount of the price cut. Some were not shocked in the timing, but ALL were very surprised that it was so steep.

Stop comparing cell phone companies to Apple.

Why is it unfair to compare Apple to a new market that it is entering?

If Apple decides to enter the airline market, shouldn't the basis for comparison be other airlines? If its competitors dropped prices, should it not?

 

[pinksalmon]

My Favorite Iphone Story

"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." -

Macrumors forum member

Exactly how i feel! I'm happy for others that waited because this price cut made the difference of buying an iphone and i believe its a great product, that everyone should have one and it was worth every penny of what i paid for it. But steve jobs pretty much just spat in my face for buying this product and being one of the many early adopters that kept the demand so high and were walking advertisements for it for the past two months. i couldn't count how many people i've told what a great product the iphone is and how its so worth the money, now you and everyone i've advertised to is laughing in my face. I'm not asking for a 200 dollar price difference as i have used the product for a month, but how bout a discount on leopard or a free headset or even an itunes gift card. i think i speak for all of us early adopters when i say i need something to help take the sting away. I'm just really sad to see the day where I've got to question buying an apple product like i would if i was buying a microsoft product. That the customer is no longer number one.

 

[thechidz]

At first I was really angry, but I've calmed down and realized that I've gotten a ton of enjoyment and entertainment from my fone, not to mention practicality over the past few months and it has been more than worth it.

I would like to see a 100-200 dollar gift card for early adopters though...

pleeeease apple???