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Could the price drop & $100 credit have been PRE-PLANNED?

J

jlanuez

macrumors 6502
Original poster
Sep 13, 2006
407
0
USA
Let's see? A minimum of 250,000 iPhone customers will receive the $100 store-credit. That equals a minimum of $25,000,000 in store credit being issued this week to existing (of some sort. Some new some die-hard) Apple customers.

I for one don't really "need" anything, so I plan on buying a SECOND :apple:iPHONE!

Will Apple (and AT&T) wind up making more money on this decision?
I think so!

TAKE THE POLL: What will you spend your $100 on?

 
This whole debacle was no doubt scripted. Companies don't just do things like this on a whim. We are all sheep in the eyes of Apple and have been fed manure. Apple won't lose a dime in all likelyhood, $100 store credit costs them MUCH less that that. Plus, you will likely but more or buy something you normally would NOT have with the $100. People around here just have too much Apple envy to realize the sleaziness of what they have done.
 
Now that u mention it...

A $200 price drop is very drastic for a product that cost $599. Apple will make more money off this because now with a lower price more people will buy it. I just wish they kept the 4GB cause that would have cost $299 which I kno many ppl would buy it.:mad:
 
All companies try to maximize their profits.

Was this a sleazy, preplanned scheme by Apple? Depends on how to you look at it. Would it had been different if the iPhone originally cost US$800 when they slashed the price to $400? What if it was $500 cut to $400?

What if they only cut the price $100.

What if Apple got some great pricing on iPhone components and was able to cut the phone $150, but they cut it another $50 and planned on making it up in volume?

What if Apple wasn't selling enough iPhones at $600?
 
I'd say it wasn't planned. Giving store credit is a good idea, as people will spend MORE money on stuff they weren't going to buy anyway.
 
Apple had to know that a limited but unknown number of early adopters would be willing to pay a premium to be the first to own an iPhone. Once that pool was exhausted, they lowered to the price to where they knew it would reach the larger audience. The estimates of the cost of production had to be a warning to any early iPhone buyer that Apple had plenty of margin to work with on this product and that the retail price could drop on any given day.
 
Not to mention they are giving the $100 store credit to people who tend to buy expensive new shiny toys that cost more than $100. I am sure they are smiling.
 
I think it is a distinct possibility. If it was in fact planned, then the marketing people at Apple are brilliant...which we already know they are.

Sell all the hard core buyers on a $600 phone. Make lots of money. Get tons of free press about how it's expensive, but awesome...people debating whether it's worth the price.

Then lower the price drastically. Get tons of free press about early buyers being pissed off. Gets tons of new buyers because of the cheap phone and make a lot more money.

Then turn around and offer half of the price drop back to early buyers in the form of store credit. Apple fanatics love it because they felt like they could have been given nothing. The Apple they know and love is even nicer than they thought. Meanwhile, many people are going to take that $100 and buy more Apple products...a new mac, a new ipod, etc. At the same time, the press is talking about how great Apple is for being so good to its customers.

It's really a win win win win situation for Apple. In regards to whether the rebate will cost them money...up front, possibly. It's hard to tell based on what people will be buying in the store. In the long run though, it would be a brilliant marketing scheme to get people to trust the company and continue to be customers for years to come.
 
I don't think the press on the price drop was positive. In fact I believe it was quite negative. The article about this which appeared the next day on the front page of the Los Angeles Times used the phrase "Apple cult" in the very first sentence, and then went to only interview iPhone buyers who were angry. That's a whole lot of back to the future, if you ask me. Probably the worst publicity Apple's received in years. What bothers me about this is that I believe Apple doesn't really care that their reputation took a pretty big hit. They're flying so high right now that they probably believe they can absorb it and move on like nothing happened. I'm not so sure.
 
kind of off topic, but the details for the $100 credit are not out yet, correct? Im sure it would be all over the internet if it was, but just checking.
 
Definitely is pre-planned. I'm not sure about their entire marketing strategy, but the price drop and the 100 rebate is definitely a single step, planned.

Anyway, Apple is trying to make *extra* money as much as possible. The rebate is, actually, optional due to the feedbacks of those "core users".

As someone already said above, this is a "win win" solution for Apple. No matter how the things going on, Apple is making *extra* money and gain even more loyalty from those core users who will shout out "Wow, apple, you did it. Nobody else can do this to us (about the rebate). I'll definitely support you".
 
A Price Drop Parody

It's hard to believe that no one at Apple knew this was going to happen. Just 69 days after the June 29th release they drop the price $200. Ouch.

I love my iPhone and it really is worth $599, but a price drop this early is an insult to early adopters, who essentially helped beta test this phone.

Here is a parody commercial I made poking fun of Apple's mistake.

Feel free to pass it around. I am looking for a spot to host an h.264 version so that it can be viewed on the iPhone.

iPhone Parody AD
http://www.youtube.com/watch?v=Qo-7uv0mQ3I
 
I dont see why early iPhone buyers should get a $100 credit. they didn't have the patience to wait a month for a phone and now they're complaining about a price drop?!:confused:
They knew this was going to happen. It's not like they didn't know they price was going to be inflated the first month so why are they complaining now?
:confused: They act like this is the first time a major electronic has recieved a major price cut. (as if iPods never existed)
 
IJ Reilly said:
Ha. If you believe in the theory that all publicity is good publicity.
Click to expand...
Consider how many people found out from all those articles that the price of that cool iPhone gadget is now down to just $399. Consider how much money Apple would have had to spend to convey that information to all those people through normal advertising channels.

This was a huge boost for the iPhone as a product -- though perhaps, as you point out, a corresponding risk for the broader Apple brand.
 
stevento said:
I dont see why early iPhone buyers should get a $100 credit. they didn't have the patience to wait a month for a phone and now they're complaining about a price drop?!:confused:
They knew this was going to happen. It's not like they didn't know they price was going to be inflated the first month so why are they complaining now?
:confused: They act like this is the first time a major electronic has recieved a major price cut. (as if iPods never existed)
Click to expand...

Seeing as how I fall into the 'they' category that bought the phone on day 1, I just want to say that I dont feel bad about it at all. So they lowered the price in 2.5 moths? Big deal. I am even getting a $100 gift card back, so it is really like a $100 loss for me. I have lost more buying a computer that I did not think was going to be updated in the near future and having a lower price/higher performing model come out in 2 weeks. If they released a new, better iPhone, I would be upset. But from a price drop? nope.
 
Hopstretch said:
This was a huge boost for the iPhone as a product -- though perhaps, as you point out, a corresponding risk for the broader Apple brand.
Click to expand...

That would be my point. This entire incident feeds into the image of an elitist Apple and nasty stereotypes about Apple customers. I can't recall having heard Apple customers described in a major media outlet as a "cult" since the late '90s (with over 100 million iPod owners, it became difficult to justify). But there it was, right on the front page of a major newspaper. Not only did the writer write is, it got past an editor. Not good!
 
Hopstretch said:
Consider how many people found out from all those articles that the price of that cool iPhone gadget is now down to just $399.
Click to expand...

That is what I was getting at. How many people out there who really don't give a rip now know that iPhone is $399. No amount of TV and print/web advertising would have had that amount of penetration. Yes, there is undoubtedly fallout from the negative perception of the companies practices. But how much, time will tell. I suspect that :apple: is selling more phones than ever.
 
iphone69days said:
I love my iPhone and it really is worth $599, but a price drop this early is an insult to early adopters, who essentially helped beta test this phone.
Click to expand...

Why is it an insult? We were willing to purchase these phones, virtually sight unseen, based on a press conference, a brand name and, for some, sky-high expectations of the future of the product. It's no surprise that early adopters are going to be stuck with a few bugs that still need to be worked out...as it's been pointed out ad nauseum, that's what happens in exchange for being "the first on your block" or for not having the patience to "wait and see." People who weren't willing to spend $600 on the promised package, didn't, but that doesn't mean that those of us who did pay $600 were slapped in the face by Apple...we have no one to blame but ourselves. The only slap in the face we got was that of the reality of the world of business and technology; and that isn't Apple's fault.
 
earnjam said:
I think it is a distinct possibility. If it was in fact planned, then the marketing people at Apple are brilliant...which we already know they are.
Click to expand...

I called it on another thread the day the announcement was made and I was trounced by nonbelievers. I totally believe it was planned and I'm glad to see other people are finally considering it a distinct possibility.
 
Littlebit said:
Why is it an insult? We were willing to purchase these phones, virtually sight unseen, based on a press conference, a brand name and, for some, sky-high expectations of the future of the product. It's no surprise that early adopters are going to be stuck with a few bugs that still need to be worked out...as it's been pointed out ad nauseum, that's what happens in exchange for being "the first on your block" or for not having the patience to "wait and see." People who weren't willing to spend $600 on the promised package, didn't, but that doesn't mean that those of us who did pay $600 were slapped in the face by Apple...we have no one to blame but ourselves. The only slap in the face we got was that of the reality of the world of business and technology; and that isn't Apple's fault.
Click to expand...

I don't think it was much of an insult, but just rather mischievous and misleading on Apple's part. I can't honestly believe that they didn't know the iPods would be set at the lower price point and would have to lower the iPhone price. I understand it's good business tactics to sell for more to the people who are buying no matter what, it's just not in line with Apple's usual business practices.

Having said that, I'd still pay $600 for this phone today.
 
I do not mean to sound cynical, but I think it was pre-planned. In my experience with corporate legal departments, getting this kind of an offer through the necessary reviews and "approvals" simply cannot be done in the timespan in which this offer was announced. For a company the size of Apple and for the vocal customer base it serves, the irate response was as predictable as it is understandable.
 
Pre-planned? No chance! Let the stock take a hit, divert attention from the new products for news of screwing first adopters? That would be a horrible plan!

Why do this? Take a chance of people a fear of people buying 1st gen Apple products for what?
 
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