Just because Apple CAN screw over their customers, legally, it doesn't mean they should. Nobody's saying Apple has done anything illegal, but that they've taken advantage of early adopters.
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8GB iPhone Price Drop, 4GB iPhone Discontinued
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Just because Apple CAN screw over their customers, legally, it doesn't mean they should. Nobody's saying Apple has done anything illegal, but that they've taken advantage of early adopters.
I'm sure there are some, I don't know any of the top of my head.. if its not 3 months then its pretty damned close.
Would you like Apple to keep the iPhone at $599 and become un-competitive merely to keep iPhone customers warm and fuzzy?
Would you be complaining if apple had introduced a 16GB iPhone at $599 and dropped the price of the 8GB down to $399?
Rule of thumb, never say never.
Things like this happen in the cell phone market -- especially in places like Japan.
Anyhow, when products don't move fast enough, or the company wants to increase product movement price drops happen.
BTW, I would venture that none of us find enjoyment out of seeing folks loose money. But we do understand that it happens and will continue to happen.
About 2 years ago, I remember a fellow who purchased a video card that cost about $800. Definitely high end. Big bragging rights and he was pumped and enjoyed telling us how good his card was.
Yes, it was new and he was excited. About 3 months later, a new card was introduced at around $700. The old card dropped to around $350-400. He was pissed. But hey, that is the game you play when on the bleeding edge of technology.
Wrong.
The iPhone is not part of the traditional cell phone business model. It is not carrier-subsidized. It is not a 6-month-and-gone device. It is a different thing -- a platform -- that is intended to have a longer lifespan, expanding feature set, and eschews the price-warring sales methods cell networks have used in the past, in order to increase churn.
The iPhone drop was a pre-meditated price drop, decided before the phone went to market. They used the high price to give the product an allure of high class sheen, and get as many high-margin sales as possible in the beginning, and then dropped it in an unprecedented timeframe to try to cash in on holiday sales.
Apple gave its early purchasers here a raw deal. Accept it.
Hmm... so I guess I paid $100/month "early adopter tax" for my iPhone
The thing is, I felt it was worth $600 back in July, so I paid my money and enjoyed the heck out of using it for the past 2 months. I knew it would drop in price, just as I knew a newer and better version might ship before the holiday season. Such is life at the bleeding edge of technology (another reason I've generally avoided buying 1st generation tech products).
Now, if Apple was smart, they would offer early purchasers something... Apple (or iTunes) Gift Card, discount on iPhone accessories, free Applecare, whatever.
I suppose I'll see if AMEX will stand behind their Return Protection program (after all, $200 is still $200), but even if I can't get the money back, I don't see that there's anything to be angry about.
People really need to take a deep breath and get some perspective.
You know I think your right and thanks for not getting in my face about it. Not necessary cash but for sure credits. I do believe Apple can afford it and really should take the high road. That said people like a few who have been complaining whining yammering about how great an Apple consumer they are while calling everyone here names if they have a comment that doesn't suit them doesn't really cut it for me. You know who I'm talking about. Just chill out and take a rest.
I'm sorry, but I cannot believe the level of whining and attempts to justify it in this thread. Let's review:
Apple is a for-profit company. They researched, engineered, developed, and marketed a product many people said they wanted--a phone. They priced it according to a considered strategy; thousands of people willingly bought it at the retail price. Now some of those people are complaining because the price dropped significantly, and some of those people feel entitled to a refund or some type of compensation. Right? Right.
<Rant on>
Sorry, but Apple doesn't owe you (or me, or anyone) a thing. That is the risk you take when you buy something totally new. What all the whining and complaining makes people sound like are spoiled brat children who want to have their cake (be one of the first people with the ultra-cool iPhone) and eat it too (to have the price difference refunded). As someone who waited to buy one, I'm delighted. I just saved $375--$200 on the phone and $175 in a cancellation fee.
Sheesh--I cannot believe how much whining is going on--I'd thought better of Macrumors' posters.
<Rant off>
Bob
Apple is a for-profit company. They researched, engineered, developed, and marketed a product many people said they wanted--a phone. They priced it according to a considered strategy; thousands of people willingly bought it at the retail price. Now some of those people are complaining because the price dropped significantly, and some of those people feel entitled to a refund or some type of compensation. Right? Right.
<Rant on>
Sorry, but Apple doesn't owe you (or me, or anyone) a thing. That is the risk you take when you buy something totally new. What all the whining and complaining makes people sound like are spoiled brat children who want to have their cake (be one of the first people with the ultra-cool iPhone) and eat it too (to have the price difference refunded). As someone who waited to buy one, I'm delighted. I just saved $375--$200 on the phone and $175 in a cancellation fee.
Sheesh--I cannot believe how much whining is going on--I'd thought better of Macrumors' posters.
<Rant off>
Bob
This may be one of the smartest business moves in modern history.
Here's why:
Why Apple shouldn't have to worry about making you(who bought an iPhone at accelerated prices) mad: You were willing to pay 599 dollars. This has nothing to do with knowing Apple's product lines(impending iPod updates) - when you are willing to pay a certain amount for a product it is because you, on some level, evaluate the product as worth what you are paying for it, this has nothing to do with what the company charges.
Why Apple's decline makes sense in a cost scenario:If Apple is at full rate production, their costs have declined substantially. Synergy between the iPhone and iPod touch will lower the cost substantially as well. They are now buying 8 gb flash memory on 3 product lines - more synergy. It's likely that Apple's original costs would have caused them near zero profits for the first 2 months, selling 1 million or so iPhones and risking a loss is not good business practice. They should not be expected to take that risk.
Why Apple's new strategy will accelerate sales and make the iPhone the next iPod, regardless of who angry 1 million of its customers are Obviously a decrease in price will accelerate sales, anyone with a brain can figure that out. However, placing the iPhone so close to the iPod in terms of pricing will cause people to seriously consider just switching phones when they are in the market for a new iPod. Additionally releasing the ipod touch is obviously a halo effect strategy for the iPhone. People who doubt the touch interface may try an iPod with it before the iPhone, and then you have a cluster of longer term sales that will make their next phone an iPhone.
Here's why:
Why Apple shouldn't have to worry about making you(who bought an iPhone at accelerated prices) mad: You were willing to pay 599 dollars. This has nothing to do with knowing Apple's product lines(impending iPod updates) - when you are willing to pay a certain amount for a product it is because you, on some level, evaluate the product as worth what you are paying for it, this has nothing to do with what the company charges.
Why Apple's decline makes sense in a cost scenario:If Apple is at full rate production, their costs have declined substantially. Synergy between the iPhone and iPod touch will lower the cost substantially as well. They are now buying 8 gb flash memory on 3 product lines - more synergy. It's likely that Apple's original costs would have caused them near zero profits for the first 2 months, selling 1 million or so iPhones and risking a loss is not good business practice. They should not be expected to take that risk.
Why Apple's new strategy will accelerate sales and make the iPhone the next iPod, regardless of who angry 1 million of its customers are Obviously a decrease in price will accelerate sales, anyone with a brain can figure that out. However, placing the iPhone so close to the iPod in terms of pricing will cause people to seriously consider just switching phones when they are in the market for a new iPod. Additionally releasing the ipod touch is obviously a halo effect strategy for the iPhone. People who doubt the touch interface may try an iPod with it before the iPhone, and then you have a cluster of longer term sales that will make their next phone an iPhone.
Maybe if this thread goes on another 54 pages, someone will have something interesting to say besides:
"Wow, I feel used"
or
"LOL @ U PWN3D STOP WHINING!"
or
"@#$% this, I'm suing!"
But personally, I'm not holding out much hope for it.
"Wow, I feel used"
or
"LOL @ U PWN3D STOP WHINING!"
or
"@#$% this, I'm suing!"
But personally, I'm not holding out much hope for it.
Actually no, I wouldn't be complaining. They should've done this. It would've been the smart thing to do. I would be completely content if a newer 16 gb version came out at the $599 price point.
You look at other countries and cell phone prices come down in price very quickly.
Apple could have managed this a little better, true, but Apple need to stay competitive - Apple want to sell as many units as it can and make money. $599 is not very competitive.
Apple need to follow the cell phone market trends. The iPhone isn't subsidized, yet, Apple acts as it is - i.e., you are told what carrier to use.. unlike if you purchased any other out of contract phone. Apple has forced itself into this corner.. it can't keep the price high, but it needs to remain competitive.
Apple could have managed this a little better, true, but Apple need to stay competitive - Apple want to sell as many units as it can and make money. $599 is not very competitive.
Apple need to follow the cell phone market trends. The iPhone isn't subsidized, yet, Apple acts as it is - i.e., you are told what carrier to use.. unlike if you purchased any other out of contract phone. Apple has forced itself into this corner.. it can't keep the price high, but it needs to remain competitive.
I'm sure this won't help the iPhone early adopters here but......
I bought a 3G 40GB iPod in December 2003 for $499. One month later we have the new 4G iPod for $100 less and more storage. I was bummed for a while but I still have my 3G iPod to this day and am very happy with it.
I bought a 3G 40GB iPod in December 2003 for $499. One month later we have the new 4G iPod for $100 less and more storage. I was bummed for a while but I still have my 3G iPod to this day and am very happy with it.
I think if you read some of the later posts, individuals are trying to explain why the change occurred.
Your list should include:
or
Why Apple reduced prices on the iPhone.
Right...some people just don't know business. The fact of the matter is this - I paid 499 for a 4 gb COMPUTER DEVICE (no its not just a phone, it's a handheld computer. It's insured as a handheld computer! It's competition is something called a Pocket PC!). Now I can't sell it on Craiglist for more than $299. Worst of all is the damn thing is discontinued.....I bought it 5 weeks ago. Who the hell does that? When you buy a car, the next year when a new one comes out you don't expect to get nothing for it. It is supposed to retain its value. Sure it will depreciate, but not 35 or 40% in two months. Sorry, I don't even think Dell Computers depreciate like that!
This is the first time I've seen Apple REALLY blow the resale value on a product. The people who say well you were prepared to pay that much forget about the thing supposed to hold value. Even Powerbooks retained their value when the Intel notebooks came out.
If Apple doesn't take care of this mess I know A LOT of people WON'T be paying for Leopard, including myself.
This is the first time I've seen Apple REALLY blow the resale value on a product. The people who say well you were prepared to pay that much forget about the thing supposed to hold value. Even Powerbooks retained their value when the Intel notebooks came out.
If Apple doesn't take care of this mess I know A LOT of people WON'T be paying for Leopard, including myself.
Tone deaf
All objectively true, but all those calling other whiners are totally missing the point. That big a premeditated price drop so soon after introduction leaves a bad taste in the mouth of many who have been big apple supporters for years. If you can't understand that, don't bother posting. The smart corporate move would be coupons for all early adopters. It would more than pay for itself in the long run.
All objectively true, but all those calling other whiners are totally missing the point. That big a premeditated price drop so soon after introduction leaves a bad taste in the mouth of many who have been big apple supporters for years. If you can't understand that, don't bother posting. The smart corporate move would be coupons for all early adopters. It would more than pay for itself in the long run.
You were wise to wait out your contract. I'm doing the same and have three weeks left, but wasn't wise enough not to buy the iPhone early.
Why do you care how much you can sell it for on craigslist? Do you want to get rid of it already? Isn't it still worth as much to you as when you bought it? Has Apple taken away features or functionality that you paid for?
It's your choice not to buy Leopard, but you will be missing the new functionality more than Apple will be missing your $129 (or whatever it will cost).
Amex will make there cardmembers whole whether it comes out of it's pocket, Apples, or both. There are tens of thousands of customers that use Amex for big ticket purchases. Every company knows this which is why they pay the larger Amex discount rate. Like them or not Amex cardholders $ per charge far exceeds that of any other card company and the last thing Apple wants to do is tick off Amex.
The bottom line is I am not upset at paying to be an early adopter. I have done it for years and know there is a price. The $200 is not the issue. The issue is time. 2 months is absurd and a slap in the face to Apples loyal customers. Apple dropped the ball big time and I hope there is someone smart enough in california to figure this out. It costs a lot more to get a new customer than it does to retain one and if Apple isn't careful they could lose way more than one thinks. Once a company loses goodwill, some never recover!
200,000 or 2,000,000. It will be done. I just called and they said your credit will show on your statement w/in two weeks. Is there anything else I can help you with Mr. Xxxxx, thank you for being a valued cardmember.
I guess sales of the iPhone wasn't as dramatic as Steve expected. All I can say is good. I hope this is a reality check to Apple. The only other problem is that its still tied to Crapular.
They were price gouging the customer anyways at $600.
They were price gouging the customer anyways at $600.
Once Leopard is released, folks will determine if it is worth upgrading to Leopard for $129 or not.
Just like those who decided that the 8GB model was worth $599 and a two year contract when they purchased it.
