iPhone price cut: Official response from Steve Jobs

[macrev]

An Open Letter from Bill Gates

(In Response to the $50 price cut on the Zune)

Dear Zune Customers;

In technology, things change. Change fast for a matter of fact. VERY fast. We started building the Zune in 1990, however with R&D put to use on our very popular, but overwhelmingly virus-prone, operating system, Windows, we felt the need to wait until the time was right for us.

2005 seemed like the right time. As we looked at the Zune, we realized that 15 years previous, it was a product way ahead of its time. In fact, people wouldn't have known what to do with it. But since we have invested so much effort into keeping our Windows operating system from crashing every PC it has ever been installed on, I couldn't justify investing another hour or two into the Zune.

So, rather than spend $10 an hour on someone who could have thought out the Zune just a little bit better, and also, told us that "squirt" wouldn't neccesarily be seen as a great word to use, I gave the green light to put Zune on the market.

Technology changes. The Zune is a game-changer. What it has done is made the iPod look absolutely brilliant, and therefore has changed the game of Apple. Not what we were looking for. If I had it to do over again, we would have thought out the Zune better, more clearly, and then, after all the hours of thought put into it, we would have taken it outside headquarters and ran over it with my car. That is how bad the Zune really is. (Fact is, I love iTunes and my iPod, wondered who would actually buy a Zune anyways)

So, I want to apologize to you early adopters who purchased a product that is not as good as Apple's iPod. If we can't do it right, and be number one, we really shouldn't have done it at all. So, to provide you something in return for your patience and your hard-earned $249 being spent on the Zune, we are going to offer you a certificate good for your free copy of Microsoft Vista. Please be advised that this has problems, and you will redeem at your own risk. And please, even though it isn't as good as Apple's product, again, we ask for your continued loyalty as you spend your money with us.

Thank you again for making me filthy rich!

Bill Gates
Microsoft Founder & Billionare

 

[dankn]

Concur

This is an amazing thing for Apple to do. However, I'm more digusted now than i was last night when I was reading through post after post of people whining when all i wanted to do was find out about the great products released. I can't believe people are still complaining. You will never see a company do this.
To the people complaining about only getting a credit to the apple store:
Don't ever start a business. You are sure to fail.
What do you want steve to send you 2 benjamins? Do you expect when ever a price on a product is dropped you are going to get a refund for what you paid. Get real and get over it. Im throwing up in my mouth because of the disgusting ego-centric attitude some people have.

To the people who are happy with this:
Congratulations. You are lucky.

To all the people that only registered in the last two days and are still complaining saying they are never going to buy another apple product. Have fun with the other products out there. You are really taking a stand. Steve is going to never be able to sleep because you are upset, meanwhile, he made millions of new friends. And dont say you are a loyal customer. a loyal customer wouldnt cry because a product price increased so more people could have it and then the company still give you something for buying it early.

Sorry if this post is long and ridiculous. I've just been so annoyed over this ordeal.

I agree. I have never been so angry at apple customers, claiming they have been cheated. Cheated?! It is a buisness. They are not obligated to keep prices high just because it might be "mean" to a few customers. Apple is in the buisness of making money. If it decides it can sell more phones by lowering the price then it has every right to do so. Not to mention, when the iPhone first came out, analysts and columnists everywhere were saying to wait and not to buy it when it first came out for two reasons: 1. kinks still need to be fixed and 2. THE PRICE IS GOING TO DROP! I mean LCD TVs prices have been dropping faster than preteen boys' ball sacs. I bought a Olevia LCD TV for $1,200. 3 months later it was down to $900. Who's fault is that? Olevia? No. It is just the way pricing in the technology market works. Its a free ******* market for crackers sake. If prices for the iphone stayed at $600, I would say it was a slap in the face to people like me who wanted an iPhone but couldn't afford it at such a high price. In the end, people are mad because they have realized how retarded they are for rushing to have the iPhone the day it came out, rather than stepping back for a second and thinking about what could happen in the near future. There is no rule book to when you can drop prices. Apple can do it whenever they want in order to lead a successful company. Steve Jobs put it best: if you spend your life chasing prices, you will never buy anything; there is always something newer and cheaper coming out.

 

[WillJS]

Like if he didn't do this it's not like we'd never buy his products again.. but that's not the point. Good job Mr. Jobs, good job.

 

[50548]

Would you be happier if Steve came to your house with a dozen roses and a bottle of red, got down on bended knee, and begged for forgiveness for making a buying season pricing decision? Seriously, do you have any practical connection to the world of commerce or are you on an tropical island somewhere with hot half naked native lasses bringing you drinks with umbrellas when you snap your fingers??

The comment by EricBrian shows only the following:

1 - some people have NO clue about how markets work, especially in the IT industry;

2 - even though they have NO RIGHTS whatsoever, they still keep on whining, based on the U.S. people's view that no one should take responsibility for their acts anymore...it's all about frivolous class-action suits;

3 - people are supposed to buy based on their CURRENT needs, not future ones. If you bought an iPhone and were happy, chill out. As SJ said, there will ALWAYS be something newer around the corner.

Once more, those whiners had NO RIGHT to complain; even then, CLASSY Jobs threw them some bones...congrats, Apple.

 

[Chupa Chupa]

I had posted previously that I would be very happy with $100 rebate of some kind and so will be happy with this provided there isn't some loop hole that keeps them from giving it to me.

Well there is one tiny loophole and Steve was dancing around it in his letter...when you take the $100 you are banned from bitching and moan at the end of the month when the 16GB 3G iPhone is annouced for Europe... and the U.S.

 

[OCOTILLO]

Caught with his hand in the cookie jar.

I think Steve Jobs was taken by surprise by the negative reaction to this price reduction. I am sure he thought the Apple fans would just bend over and take it. Now in his inimitable style he turns a sow's ear into a silk purse. As several other posters have stated the $100.00 store credit will result a major sales boost at the Apple stores. However, I will be happy to take it, after all, it is better than being poked in the eye with a sharp stick.

 

[kugino]

Im not going to say thank you to Apple. I just want them to know they screwed up big time. Marketing 101 was def ignored. At least Apple gave some money back. I think that steve should have just said we screwed up sorry here is 100 bux have a nice day instead of trying to come up with this bumpy road bull crap.

what exactly is "marketing 101" and how did they ignore it?

 

[grovertdog]

Apple's most glaring mistake is that they didn't simply put the 8GB iPhone "On Sale" for the upcoming holiday period. Simulataneous with this announcement could have easily been added "We will refund $200 to everyone who bought the 8GB phone during the past fourteen day period."

After the holidays, Apple could then safely announce that $399 was the new retail price.

It seems evident that Apple's business model doesn't include the philosophy that "A fast nickel is worth more than a slow dime," or that they don't subscribe to the axiom of "Everyone like a deal." Sam Walton built an empire far larger than Apple using just such tactics.

Sam Walton's company has benefited more from other tactics such as having a huge payroll of undocumented workers, refusing to pay living wages for its employees, is the leading importer of Chinese garbage (thus indirect exporter of US jobs),illegally fighting any attempt of workers to organize, utilizing the largest number of employees without any healthcare benefit in the United States. Hardly a model I find worthy to follow, unless greed for the sake of greed is all that matters.

I don't think Apple wants to follow the "let's sell as much junk as cheaply as possible" Walmart formulta- isn't that more the PC business model?

 

[technicolor]

And that's exactly why Steve Jobs is so brilliant. Not only has Apple addressed the whiners and complainers by giving them an in-store credit as opposed to a cash refund, thus forcing them to spend more money with Apple, but many customers will have the exact same idea as you - put the money towards an item which is more than $100.

So now Apple has not only milked an extra $200 out of the early adopters, but has also come out with a strategy which involves these customers giving even more of their money to Apple. And the people who were whiners, saying they would never buy Apple again are now proven to be hypocrites as well as complainers. Simply brilliant, I love it. Milk them for all it's worth Apple!

People who have spent that money anyway so in a sense they are not milking anyone out of anything extra. People were going to buy ipods and leopard anyway when they came out of their "boycott apple" comas. So the 100 rebate doesnt make anyone spend more money than they would have anyway. But I know its not nice to think that the customer may have gotten a nice concession its a lot more fun to be as negative as possible about the entire thing even if it doesnt have anything to do with you.

 

[sonictonic]

I bought the iPhone on launch day, and felt my $600 iPhone was totally worth it. I thought yesterday's announcements were awesome, and the price drop was a great move.

I don't get how so many people feel so incredibly entitled just by having an iPhone. To me, paying an extra $200 to have the phone on launch day two and a half months before everyone else was worth it. I didn't feel I was owed anything at all!

So, this was a huge and awesome surprise. I am in awe of how great Apple is right now.

Thank you Steve Jobs - HUGE kudos to you and the whole team. I love you guys!

 

[dankn]

what exactly is "marketing 101" and how did they ignore it?

Marketing 101 from the apple customer handbook:
1. Wait in line for a product when it first comes out.
2. Buy it at a extremely high price.
3. Bitch when the price comes down because suddenly your not the cool kid on the block anymore. EVERYONE HAS ONE! How are we suppose to serperate middle class from the upper-middle class?
4. Make chancellor of Facist Technology Land (FTL), Steve Jobs, pay.
5. Steve Jobs makes the upper-middle class happy again by giving out gold coins. Anarchy avoided.

 

[JPark]

Not true, He responded to mine when I switched to apple. It was short and to the point but definitely in context to my message. If says he read them, then I trust he did. He takes written responses seriously.

That's right, Cliff, I do personally read all emails addressed to me. In fact, I remember reading your email.

-Steve

 

[PharmD]

Thanks Steve!

"Free" Leopard upgrade!*

*Assuming the student price is $100 or below and the gift card doesn't take 6-8 weeks to ship.

 

[dankn]

That's right, Cliff, I do personally read all emails addressed to me. In fact, I remember reading your email.

-Steve

I am sorry for that imposter. I am the real Steve Jobs. I DO NOT read the emails. I am too good for that. I use them to keep my fire going, along with the 4gb iphones.

-Bill

 

[otter008]

Still Pissed At AT&T - Roadside Assistance Scam

Relevant to the thread.. I don't feel any "entitlement" to have the price stay the same even for a week. I don't expect a refund for the stock I bought that dropped in price, or if my house went down in value, or even if Starbucks drops the price of their espressos (that would be a $$ refund!). This happens all the time. Everybody standing in the goddam line on release day knew what they were getting and what they were paying.

That said, I like having the rebate, of course. Apple is going to be out around $42 million for this (assuming 700,000 iphones and 60% cost of goods). But they'll get a bunch of extra sales of more expensive iMacs and iPods because of it. $100 takes it out of the iTMS gift card range for a lot of people.

Unrelated.. How many of you with iPhones are aware that you've been signed up for ROADSIDE ASSISTANCE at $3 / month? I NEVER ASKED FOR IT, OR APPROVED IT. Indeed, I called to cancel the service when I found out about it the first time -- pissed, because it wasn't mentioned in the sign-up process. I just found out that I'm STILL being charged for it. Are you?

700,000 iPhones * $3 / month = a nice little $2.1 million per month. Nice scam, AT&T!

AT&T has been the only sour note in this iPhone adventure. I've already spent two hours on the phone with them in two months. And the failed activations opening weekend. And the EDGE network failing in the first week. And now this.

Verizon may have ripped me off more, but at least they were reliable.

 

[JPark]

I am sorry for that imposter. I am the real Steve Jobs. I DO NOT read the emails. I am too good for that. I use them to keep my fire going, along with the 4gb iphones.

-Bill

Oh come on. Of course he reads all his email. Steve Jobs is like Santa Claus. They're not bound by the same laws of physics we mortals are.

 

[Wild-Bill]

You mean to tell me that after 30+ years in the IT tech industry, most of it with Apple, that Steve didn't see this one coming from Mac fans??? I firmly believe no one understands the Mac fan base as well as Steve does, and I therefore submit that he indeed predicted this backlash.

Folks, this is pure genius. That $100.00 store credit is going to boost their sales even further. How many Mac fans do you know that would go into an Apple store or online to spend "just" $100.00 ??? He knew it all along and I am sure this was planned. Genius.

Hmmm..... Leopard is coming, isn't it?? Costs $129, right? Well now the flaming masses can get it for $29.00 + tax. Sounds like a good deal to me, and an excellent way to capture 500,000+ users to upgrade to Leopard.


****** Oh, not to mention all the free iPhone marketing he just got.

 

[Peace]

[snippet]

The comment by EricBrian shows only the following:

2 - even though they have NO RIGHTS whatsoever, they still keep on whining, based on the U.S. people's view that no one should take responsibility for their acts anymore...it's all about frivolous class-action suits;

While I agree with you please don't lump ALL citizens of the U.S together.There are Americans that aren't this way.

 

[cliffjumper68]

He has read my emails before and personally replied, he even got someone to call me from Cupertino. I helped them fix an issue with the iTunes store in the UK, sent me a £100 music store voucher to say thanks.

Ian

That makes atleast two reponses in this thread, Ian andd me. I didn't get a voucher but did get the info I needed. Steve thanks for caring about us little ones.

 

[EricNau]

You mean to tell me that after 30+ years in the IT tech industry, most of it with Apple, that Steve didn't see this one coming from Mac fans??? I firmly believe no one understands the Mac fan base as well as Steve does, and I therefore submit that he indeed predicted this backlash.

Folks, this is pure genius. That $100.00 store credit is going to boost their sales even further. How many Mac fans do you know that would go into an Apple store or online to spend "just" $100.00 ??? He knew it all along and I am sure this was planned. Genius.

If it was planned, why did he wait a day?

 

[technicolor]

You mean to tell me that after 30+ years in the IT tech industry, most of it with Apple, that Steve didn't see this one coming from Mac fans??? I firmly believe no one understands the Mac fan base as well as Steve does, and I therefore submit that he indeed predicted this backlash.

Folks, this is pure genius. That $100.00 store credit is going to boost their sales even further. How many Mac fans do you know that would go into an Apple store or online to spend "just" $100.00 ??? He knew it all along and I am sure this was planned. Genius.

Hmmm..... Leopard is coming, isn't it?? Costs $129, right? Well now the flaming masses can get it for $29.00 + tax. Sounds like a good deal to me, and an excellent way to capture 500,000+ users to upgrade to Leopard.

Pretty much everyone was going to buy leopard regardless. A 100 dollar rebate is not going to significantly increase leopard sales. Most of the early adopters will be early adopters for leopard regardless of the rebate. All of the people who bought iphones arent even mac users. You guys are nuts acting if people are so dumb that they are being taken on a ride for getting a 100 concession. OMG you guys got a 100 rebate you are going to go into the apple store and bust it down and spend a garillion dollars OMG STEVE GOT YOU GOOD. The fact that some of you feel this way, want to see Apple stick it to people just because, AND especially those of you who dont even have iPhones , are just as juvenile if not more than those you are accusing to be whiners.

 

[akakillroy]

All I can say is, ONLY In AMERICA, you got to love it.

LOL

 

[cliffjumper68]

That's right, Cliff, I do personally read all emails addressed to me. In fact, I remember reading your email.

-Steve

He never said nor did I that he reads "all" the emails, but he does read emails from regular people and he does respond. If he said he read hundreds, then I would beleive him. One thing Steve is not is a poser, black shirt jeans and all, what you see is what you get. Do you remember the open "green" letter. Look at Apples actions since then. They walk the walk.

 

[dankn]

You mean to tell me that after 30+ years in the IT tech industry, most of it with Apple, that Steve didn't see this one coming from Mac fans??? I firmly believe no one understands the Mac fan base as well as Steve does, and I therefore submit that he indeed predicted this backlash.

Folks, this is pure genius. That $100.00 store credit is going to boost their sales even further. How many Mac fans do you know that would go into an Apple store or online to spend "just" $100.00 ??? He knew it all along and I am sure this was planned. Genius.

Hmmm..... Leopard is coming, isn't it?? Costs $129, right? Well now the flaming masses can get it for $29.00 + tax. Sounds like a good deal to me, and an excellent way to capture 500,000+ users to upgrade to Leopard.


****** Oh, not to mention all the free iPhone marketing he just got.

Eh, I am betting they are just counting on people being apathetic to the situation and not actually cashing out. When they offered $40 rebate because of the class action suit about ipod battery life, how many people do you think actually took advantage of it? I knew about it, I was just to lazy to do the work it required to get the money. I am not saying everyone won't take advantage of this offer. But I would not be suprised if only half of iphone purchasers actually seek out the $100 store credit. Apple has done there part, absolving themselves from wrong doing, leaving it in the hands of the people. And we all know how lazy people are.

 

[CWallace]

Well I suppose I should be grateful to all my peers who raised such a stink that Steve J. is now picking up the cost of an AppleCare plan for my iPhone (since they didn't have it in stock when I bought it)...

But part of me is...well, I don't know what emotion to type...by the hypocrisy I see being spouted here. 1500 posts blasting Apple yesterday for dropping the price, and now closing on 1500 posts praising Apple today for giving us half of it back.

The price drop surprised me because Apple doesn't historically drop the price that fast and, frankly, neither do other cell companies with new "gotta have it" products. And if I had expected it would drop 30 days after I bought it, I would have waited.

But I still wanted an iPhone and figure if I was willing to pay $600 for it, I shouldn't be upset that someone else paid $400 for it - be it 30 days or 30 weeks later.

I'm man enough to admit I did buy it in part for the "envy of my peers" factor, but every day I use it and explore it, the more I like it. When Steve announced the price drop, the first thing I did was call everyone I knew who had bought one within 14 days to take advantage of the price drop.

The second thing I did was call everyone I knew who was impressed/envious of my iPhone to take advantage of the price drop - and get one.

The more Apple sells, the more goodies third-parties will develop for it and all of us iPhone owners - early adopters and "Johnny come latelys" - benefit.