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iPhone price cut: Official response from Steve Jobs
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Similar to Aperture Rebate
Actually, Apple has done this before. When they lowered the price of Aperture by $200, they extended a rebate offer to existing customers. I wish they would carry same approach over to the iPhone rebate, especially as they are actively granting $200 refunds to customers who have bought within the last 14 days.
Actually, Apple has done this before. When they lowered the price of Aperture by $200, they extended a rebate offer to existing customers. I wish they would carry same approach over to the iPhone rebate, especially as they are actively granting $200 refunds to customers who have bought within the last 14 days.
I can't believe some people are claiming the $100 voucher was preplanned - I doubt it one little bit. It was a good natured offer by Apple once they realised they had upset the existing iPhone customers. That rebate will work out to be a lot of $$, that apple would have preferred to have kept ( although the voucher is coming straight back to them and they'll probably make a load of money from the purchases... and some people won't use them / claim in the first place ).
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The reason why Apple can decrease the prices now is because they can decrease the price due to a boat load of Touch devices being made... economies of scale.
With all its flaws, $399 is a great price for the iPhone. However, unlike other phones that you buy outright, you can't use any GSM provider you like.. However, you can almost forgive this for the 'cheap' price of the iPhone.
N800 has removal memory, and is more capable than the iTouch, with its open platform concept, camera, speaker / mic etc. But the iPhone Touch has the potential... its up to Apple giving access to 3rd party developers.
Originally Posted by macshark
Regardless of the discussion about whether the iPhone price cuts are fair to early adopters, etc. one thing is pretty clear:
Apple screwed up the initial pricing of the iPhone. They should have introduced 8GB at $399 and 4GB at $299 from the start, if they can afford to sell them at these prices.
I wonder if this has anything to do with industry expectations about price increases for Nand Flash, DRAM and LCD panels for the second half of this year. There was pretty strong consensus among industry analysts that flash and DRAM prices were going to see a significant upward trend in the second half of this year, which has proven to be incorrect at this point. Flash prices continue to decline.
Even at $599, 8GB iPhone was a decent deal. At $399, it is a steal. Look at the prices of comparable devices from Nokia (N95), etc. Even the Nokia N800, which does not come with any type of phone functionality and weeny bit of onboard flash is selling for close to $400.
It is pretty amazing that Apple can sell the 8GB iPhone for $399. Maybe the kickbacks from AT&T is providing the entire profit margin.
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The reason why Apple can decrease the prices now is because they can decrease the price due to a boat load of Touch devices being made... economies of scale.
With all its flaws, $399 is a great price for the iPhone. However, unlike other phones that you buy outright, you can't use any GSM provider you like.. However, you can almost forgive this for the 'cheap' price of the iPhone.
N800 has removal memory, and is more capable than the iTouch, with its open platform concept, camera, speaker / mic etc. But the iPhone Touch has the potential... its up to Apple giving access to 3rd party developers.
Originally Posted by macshark
Regardless of the discussion about whether the iPhone price cuts are fair to early adopters, etc. one thing is pretty clear:
Apple screwed up the initial pricing of the iPhone. They should have introduced 8GB at $399 and 4GB at $299 from the start, if they can afford to sell them at these prices.
I wonder if this has anything to do with industry expectations about price increases for Nand Flash, DRAM and LCD panels for the second half of this year. There was pretty strong consensus among industry analysts that flash and DRAM prices were going to see a significant upward trend in the second half of this year, which has proven to be incorrect at this point. Flash prices continue to decline.
Even at $599, 8GB iPhone was a decent deal. At $399, it is a steal. Look at the prices of comparable devices from Nokia (N95), etc. Even the Nokia N800, which does not come with any type of phone functionality and weeny bit of onboard flash is selling for close to $400.
It is pretty amazing that Apple can sell the 8GB iPhone for $399. Maybe the kickbacks from AT&T is providing the entire profit margin.
Apple, Ben Jerry's Costco, put money where it counts
People vote all the time with their $$$. That is why many of us buy Apple products..good quality, ease of use and a company that truly thinks different. If your an Apple follower you should be impressed how nimble Apple has become as it is growing...(this in comparision to 10 years ago)
It quickly realized that the 4GB model was a mistake...it wasn't selling...it quickly realized that the biggest block to adoption of the IPHONE wasnt' the product...but the price...if Apple has learned nothing it is that in needs to control or at least be a majority player in some markets.
Finally, Jobs reaction, took only 24 hours, and was a reaction to a fan community that can quickly express it's satisfaction or disatifaction.
$100 credit is very fair. Well done Apple.
People vote all the time with their $$$. That is why many of us buy Apple products..good quality, ease of use and a company that truly thinks different. If your an Apple follower you should be impressed how nimble Apple has become as it is growing...(this in comparision to 10 years ago)It quickly realized that the 4GB model was a mistake...it wasn't selling...it quickly realized that the biggest block to adoption of the IPHONE wasnt' the product...but the price...if Apple has learned nothing it is that in needs to control or at least be a majority player in some markets.
Finally, Jobs reaction, took only 24 hours, and was a reaction to a fan community that can quickly express it's satisfaction or disatifaction.
$100 credit is very fair. Well done Apple.
BAM!
Just got back from the apple store. Got a full refund of the difference on 2 iphones. $432 refund. Nice guys there.
Do it now before its too late.
Just got back from the apple store. Got a full refund of the difference on 2 iphones. $432 refund. Nice guys there.
Do it now before its too late.
Thanks!
I bought two iPhones on launch day.
Great phones!
I was surprised yesterday but anything but mad. I posted last night that I didn't expect any kind of refund. Didn't feel I deserved one. True...Surprised at the amount and how soon it was, but that was about it. I knew before the iPhone ever came out that I was buying two on launch day. Glad I did. I was in USA Today twice too. Quite a bonus in itself. The iPhone is the greatest piece of technology I own.
I am so pumped about getting $200 back. Unbelievable! Wow!
I just read Steve Jobs' Letter. What a class act.
Thank you Steve. Great product. Great company. Great CEO.
I'm trying to think of any Apple hardware that I am dissapointed in and I can't. I even have the HiFi. Laugh if you want, but it is awesome. Sorry to read it's going away. Maybe I can snag another one on eBay.
I hope some day I get to stand in line on an Apple product launch day with as much antipicpation as I did for the iPhone. It has certainly lived up to it and more. With new updates on the way like ringtone maker, etc. It just keeps getting better.
I bought two iPhones on launch day.
Great phones!
I was surprised yesterday but anything but mad. I posted last night that I didn't expect any kind of refund. Didn't feel I deserved one. True...Surprised at the amount and how soon it was, but that was about it. I knew before the iPhone ever came out that I was buying two on launch day. Glad I did. I was in USA Today twice too. Quite a bonus in itself. The iPhone is the greatest piece of technology I own.
I am so pumped about getting $200 back. Unbelievable! Wow!
I just read Steve Jobs' Letter. What a class act.
Thank you Steve. Great product. Great company. Great CEO.
I'm trying to think of any Apple hardware that I am dissapointed in and I can't. I even have the HiFi. Laugh if you want, but it is awesome. Sorry to read it's going away. Maybe I can snag another one on eBay.
I hope some day I get to stand in line on an Apple product launch day with as much antipicpation as I did for the iPhone. It has certainly lived up to it and more. With new updates on the way like ringtone maker, etc. It just keeps getting better.
my thoughts exactly. nice of apple to make the effort, but they will bring customers back into their stores for more items. what costs $100 at the apple store? only accessories...
I'm very impressed with Steve and Apple for doing this. And happy! It makes me stick to Apple even more. <3
I knew they'd do this, and everyone saying they wouldn't do it kind of surprised me. I didn't buy an iPhone but I wouldn't even have been worried if I did.
They personally gave me a huge refund and some store credit when I was upset with one of my first purchases from the Apple Store. It was sweet and gave me more faith in Apple than any company, ever. It's not like I even had to push for it back then, I'm not a strong spoken person at all ^.^
Very great to see in 4 1/2 years they haven't changed, perhaps gotten better.
Enjoy your $100, everyone!
I knew they'd do this, and everyone saying they wouldn't do it kind of surprised me. I didn't buy an iPhone but I wouldn't even have been worried if I did.
They personally gave me a huge refund and some store credit when I was upset with one of my first purchases from the Apple Store. It was sweet and gave me more faith in Apple than any company, ever. It's not like I even had to push for it back then, I'm not a strong spoken person at all ^.^
Very great to see in 4 1/2 years they haven't changed, perhaps gotten better.
Enjoy your $100, everyone!
Grow up and take responsibility for your own actions.
THAT is the problem with America today. People feel entitled.
The fact that the $100 is store credit is ok by me. Might end up getting more switchers in the long run.
This whole thing still bugs me though, it really showed the immaturity of the people that I considered "kindred spirits" in the Mac community to the whole world.
This is a sad time to be an Apple fanatic.
THAT is the problem with America today. People feel entitled.
The fact that the $100 is store credit is ok by me. Might end up getting more switchers in the long run.
This whole thing still bugs me though, it really showed the immaturity of the people that I considered "kindred spirits" in the Mac community to the whole world.
This is a sad time to be an Apple fanatic.
Early Adopters = SUCKAS!
Early Adopters=Folks who can afford to loss $200, I pride myself and work hard to be an early adopter.
I think that's great! Good going Apple. I bought an iPhone early, and was a little disappointed by the price drop happening so soon, but as I watched the keynote last night it did remind me just how cool my iPhone is...
The $100 credit will go towards an iPhone for my wife. Fantastic!
The $100 credit will go towards an iPhone for my wife. Fantastic!
I've been around the block so to speak in regards to my problems in the iBook G3 Logic Board issue on 3 occasions.... and you know what? I never saw any kind of $$$ thrown my way.
I for one don't need to be compensated by Apple to call myself a Apple customer for life.... I have always been one and will always be one no matter what happens.
I for one don't need to be compensated by Apple to call myself a Apple customer for life.... I have always been one and will always be one no matter what happens.
What an emotional roller-coaster! Yesterday I was totally upset about my purchase on iDay. But reading Steve's letter made me happy about my purchase again.
I'll admit that I was disappointed in Apple yesterday, and I do regret that I was because of what Steve did today. This credit may work out to Apple's advantage. Nothing really costs 100 dollars in the apple store, so people will buy one of the new iPods, another iPhone, or even put it toward a new Mac, something that they may not have bought without the 100 dollar credit.
I also think that Apple would be stupid if they did not know how many of the early adopters would react. I think it was smart of them to let many complain and 'give up' on Apple just because of the price drop, only to give them a 100 dollar credit the next day. Now everyone who was complaning yesterday is saying how Apple is a great company, blah blah blah.
Very smart on their part, it benefits everyone.
I also think that Apple would be stupid if they did not know how many of the early adopters would react. I think it was smart of them to let many complain and 'give up' on Apple just because of the price drop, only to give them a 100 dollar credit the next day. Now everyone who was complaning yesterday is saying how Apple is a great company, blah blah blah.
Very smart on their part, it benefits everyone.
If someone told you that you could buy the coolest phone ever and that Apple combined it with an Ipod and WIFI web surfing at it wiulu cost you $600. today oir $400 in nine weels, I still believe many would buy it today.
When the iPhone went on sale, many people waited in huge lines and many paid a premium price on Ebay and Craigslist even though they knew they could wait one week, not wait in line and get it for the normal price.
Those million people who bought it the first week HAD to have it at the git go..no matter what the cost. That's why I don't understand the bitching.
Apple made a decison, probably in the past two or three weeks, to lower the price for the final quarter and into the Holidays. A business decision to go after a much wider audience. Since they had these new Touch Pods, they figured that their manufacturing costs were lower across the several platforms. It made economic sense NOW. Not Two months ago at the beginning of Summer.
Apple didn't lower the price to screw you.
When the iPhone went on sale, many people waited in huge lines and many paid a premium price on Ebay and Craigslist even though they knew they could wait one week, not wait in line and get it for the normal price.
Those million people who bought it the first week HAD to have it at the git go..no matter what the cost. That's why I don't understand the bitching.
Apple made a decison, probably in the past two or three weeks, to lower the price for the final quarter and into the Holidays. A business decision to go after a much wider audience. Since they had these new Touch Pods, they figured that their manufacturing costs were lower across the several platforms. It made economic sense NOW. Not Two months ago at the beginning of Summer.
Apple didn't lower the price to screw you.