iPhone price cut: Official response from Steve Jobs
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beetlejuice
macrumors newbie
haha, my powerbook will last forever.
whatever, dude. Yeah I blindly thought that apple had some integrity before, and I am paying 100 bucks for that mistake. I, in no way, feel apple made right. Sure me and alot of other people were early adopters, but I hardly call 15 days early.
Explain this to me then. If they had dropped the price 100 dollars, it wouldnt be so sour and people wouldnt be saying that steve jobs is a god. Yet, apple made right by dropping the price two hundred dollars and then giving us 100 dollars back? bs if you ask me.
JGowan
macrumors 68000
You are a jackass. If they've sold 1M iphones, you expect them to give back $100,000,000 (1/10 of a BILLION DOLLARS) in cold hard cash?! Dream the "F" on, ingrate. Steve didn't have to do a dang thing but count the money. He simply wants the customers to be happy and come back and continue to buy Apple stuff. It's bigger than anything ANY OTHER company would do. Name ONE other company who would do this. You can't. ZERO besides Apple.Oh how magnanimous of his royal Steve.Instead of money they give store credit so there is a better then average chance that what you walk out with will be whatever the cost of that new toy is - $100. They may as well have called it a sales promotion.
It would be as if the Microsoft settlement check I got in the mail last week (MN vs. MS.) could only spend it on a Microsoft product or a computer with a Microsoft OS.
Gah. I'm going to be sick at how many people think this is a good thing. Its simply Apple trying to save face in the wake of being caught with their pants down and....well lets not get into that image...its pretty
What really gets me isn't that Apple is doing this. They are a company. No issues with the act. Most companies play games from time to time. Its the loyalty factor. I understand bing a fan of a company. I understand enjoying a product. But stuffing one's head in the sand and acting as if what has happened is no big shake is....well hell its what got Microsoft to where it is today. If people want to make Apple better they should be pissed and holding their feet to the fire. Not saying that a $100 in store credit is good enough.
It is quite possible that Apple proved themselves with the companies supplying all of the components for the iPhone that there would be a lot more demand (#1 phone selling right now) and made new contracts for less money to buy in greater bulk. It is more than possible that they gave the price cut because they could afford to do so because of a lowering of prices from their vendors. The SHUFFLE, the NANO and the TOUCH are all flash memory and come in all new enclosures that are guaranteed to sell. Perhaps flash prices were too high for just the phone's needs, but now, with all but the "Classic" being flash, Apple was able to buy even more at reduced prices.
It is the nature of the beast that is technology. Prices are higher for early adopters. If it's a hit, the price comes down. Apple has 3 or 4 of these types of big announcements a year. They released their whole new lineup of iPods yesterday. It was the perfect time to also go down on the iPhones price so that people could start decide how they wanted to do their holiday shopping. I agree with the majority here that says that the whiners can lump it.
benlee
macrumors 65816
ARe you trolling? You say your powerbook will last forever. Signifying you realize how great apple products are. But you are saying you are not going to buy anymore because Apple dropped the price a little earlier than you expected. I am officially flabbergasted by people complaining about the price drop. If the price didn't drop you would have still paid what you paid for it. So now you are actually making out because you are getting $100 credit.
I'm sorry but people really need to get a grip on reality. You bought a PRODUCT from a COMPANY, no one ever guarenteed you anything.
9-6-07: the only day in history people complained about a price being lowered on a product
9-7-07, 9-8-07: The company that sells the product gave the people who complained about the price being lowered credit (god knows why) and then some people still complained.
UFB (Un*******Believable)
drater
macrumors 6502a
Yes, Apple has no integrity....riiiiiiiight. They wanted to make their product more available to other people besides you and I. They made right by giving something back, having no integrity would mean, dropping the price on their product and not giving two *****s what you and I thought and did nothing.
No one cares if you think they made it "right" by giving a $100 back. The fact is, you can go somewhere else. I suggest if you're going to be such a little princess about it, then go. Apple fans spoke, Steve listened. That is the point! He listened, he didn't have to. And that's not because "oh my god its Steve Jobs wooooooow!" its because he actually gives a damn about the fanboys/macaddicts/whatever out there.
You need to stop being so narrow minded about it, look at the entire spectrum of things, compare him to other CEOs cause that is what he is. He's not your friend or some guy who is on craigslist that sold you a broken iPod. He's a business man, made a business decision, which some people were upset about and instead of letting pride get in the way, he apologized and gave something back.
Now if it was a big business move to get publicity, then good for him, he got it. That's what companies/artist/musicians/actors/etc do. A price drop was bound to happen, but I'll take your opinion of when that should happen when you start your own revolutionary business from the ground up, become one of the richest men in the world and influence millions of people with a flick of your keynote slide. We'll talk then...in 2050 when you're demanding a refund because they lowered the price of your powerbook
You shouldn't forget to counterbalance this thread with all the hate mail Steve Jobs received just one day before.
Those who say this wasn't required are ignorant and its still not enough
Anyone who thinks that Apple could stand by and do nothing are completely ignorant about business. If you burn your early adopters, even if its 20-30%, you potentially jeopardize any future product launch you might have. Apple's $100 credit is a step, but not enough. If they were smart they would offer free Apple Care along w/ the $100 credit - neither of which would cost them the actual retail value to give, but would engender significant goodwill amongst a community that would be willing to spend far more on Apple products in the future if treated right. I for one had been planning on buying a MacBook Pro upon the release of the new OS. I will now more than likely switch to Dell or HP.
Anyone who thinks that Apple could stand by and do nothing are completely ignorant about business. If you burn your early adopters, even if its 20-30%, you potentially jeopardize any future product launch you might have. Apple's $100 credit is a step, but not enough. If they were smart they would offer free Apple Care along w/ the $100 credit - neither of which would cost them the actual retail value to give, but would engender significant goodwill amongst a community that would be willing to spend far more on Apple products in the future if treated right. I for one had been planning on buying a MacBook Pro upon the release of the new OS. I will now more than likely switch to Dell or HP.
deputy_doofy
macrumors 65816
Yup. Complete agreement with you. People are dumb!
benlee
macrumors 65816
DUDE YOU'RE GETTING A DELL!
drater
macrumors 6502a
Bye! and take the rest of the Newbs with you. Its funny, how come most, if not all of the people posting about switching are newbs...interesting. Anyways, BYE!
Gowan is off the mark
There is no way Apple would consider this a successful launch. Whoever was responsible for pricing the product in marketing screwed the pooch big time, and because of that they (Apple) had to turn tail quickly in order to meet the number they gave the Street. Because Apple screwed up on the market research, they burned the early adopters. Price cuts occur gradually in consumer products because of market psyche of the consumer. These are consumer products, not computer chips like everyone seems apt to compare them to, or other commodities. This was a major screw up for Apple, although its really the only significant misstep they have made recently. Nevertheless, a huge miss.
Guaranteed that all things being equal, you would not have seen a IPhone price cut for at least a year. You might have seen larger flash memory sizes at the same price point, but they would not have lowered the price if they had gotten it right the first time around.
There is no way Apple would consider this a successful launch. Whoever was responsible for pricing the product in marketing screwed the pooch big time, and because of that they (Apple) had to turn tail quickly in order to meet the number they gave the Street. Because Apple screwed up on the market research, they burned the early adopters. Price cuts occur gradually in consumer products because of market psyche of the consumer. These are consumer products, not computer chips like everyone seems apt to compare them to, or other commodities. This was a major screw up for Apple, although its really the only significant misstep they have made recently. Nevertheless, a huge miss.
Guaranteed that all things being equal, you would not have seen a IPhone price cut for at least a year. You might have seen larger flash memory sizes at the same price point, but they would not have lowered the price if they had gotten it right the first time around.
Don't let the door hit you on the way out.
Seriously, though, if you're so fickle it won't be long before you switch away from Dell and HP as well. Where will you go then and for how long?
While Apple did not have to offer the $100 in-store credit, I do agree with you that the negative publicity they were getting would have turned away new customers and dented the image of the iPhone. The price cut is designed to drum up sales, which no doubt were languishing a bit, and it's not a good thing to carry around negative publicity on a product you're trying to promote aggressively.
1. Why are you complaining about a price drop? Isn't it good that the price is lower for people who couldn't initially buy an iphone to buy one now? For the majority of the population this price drop is great. How much does a new car depreciate after driving off the lot?
2. You were willing (and able?) to pay the price and were you happy with it? I presume so because you do still have it right? Let's compare this to the release of Vista. At least 1/3 of the "new" features that were promised years prior to the release date are missing. How much does vista cost? Did Microsoft issue any kind of official acknowledgment or compensation? Pricing of any product is due to supply and demand.
3. So if apple were to not lower the price, would this make you happier knowing that they are getting an extra $100 from new iphone owners? How about paying an extra $100 if you needed to replace the phone? Is there any other company who is willing to do what apple is doing? How about a car company (BMW) who releases mid year updates on their cars. Would they offer rebates to owners who bought the car 6 months prior?
I'm not entirely convinced that this price scheme was premeditated. It is a possibility though. Think of it as a mail in rebate that you never knew about. Those usually take this long to process anyway. What I do believe is that apple is creative and also brave enough to do this. Think about the press they will get. Not only that, the main objective of this price drop, then rebate is how much they have lowered the uncertainty of buying a technology device. Knowing that they were willing to do this with the iphone, future buyers of any of their device will not be worried about the uncertain future of product updates or price drop (buyer remorse will greatly be reduced).
drater
macrumors 6502a
yeah, not a successful launch (laugh). I remember the days when I would wait in line for days waiting for the new Moto Q and the Treo to come out! Oh those were the days. I remember the website, probably not up still. www.countdowntotheTreo.com/boring
Yeah, terrible launch on Apple part.
benlee
macrumors 65816
Yeah I cant wait until they leave. I'm an idiot for letting them get to me but the logic just isn't there. Night Night Newbies. Hide your wallet. Stevie is coming to get it. He's out to get you. You guys realize apple LOWERED the price right?
please bookmark this thread and re read the things you're saying in 5 or 10 years time... it will make a great laugh... that is if you have a sense of humor.
macsamillion
macrumors member
OK. Let's talk about the 'master plan.' It probably went something like, "how do make sure that there is enough staff to handle a major problem if there is one?" "How do we handle a recall if we need to?" "What is the turn around time going to be for repairs?" "Are we going to offer loaner iphones so that our customers don't go with out?" All of these scenarios are cost intensive with an unknown out come. One would suspect that to protect the Apple faithful they wanted to have every contingency covered... Nothing Happened! From what I've heard this the single most uneventful product roll out in history--of anything. Your the boss... so what do you do? Pocket all the cash you didn't need? Jobs took the moral--as much as I hate the word--road and gave the money back. Did he have to, no. Does it make company look good you bet.
Silly humans, it not what it cost to buy, it's what it cost to keep. Everyone is whining about the 100-200 bucks. Your getting racked over the coals by ATT for a least $1400 for 24 months of less than Apple quality service. ATT service is overpriced by any standard.
random
i was happy with the decision apple made before they offered the $100 credit...
now im even happier...
but as i read through some of these posts, i cant help wonder why im not seeing the most feasible, and sarcastic remark displayed over and over....
maybe it already has....but o well...
example:
wow they lowered the cost of the iphone?!??!?!
how bout them apples...
lol
:: bored::
i was happy with the decision apple made before they offered the $100 credit...
now im even happier...
but as i read through some of these posts, i cant help wonder why im not seeing the most feasible, and sarcastic remark displayed over and over....
maybe it already has....but o well...
example:
wow they lowered the cost of the iphone?!??!?!
how bout them apples...
lol
:: bored::
beetlejuice
macrumors newbie
Thanks for a non-argumentative response, as oppose to the trolling accusations of others. You have some very valid points and I apprectiate them. You are right in that, I would pay the same price for my phone if they hadnt dropped the price and I wanted one today, but, if bmw dropped the price of their car 33 percent, I am not sure you would be mad too that you just lost over 33 percent of your investment. I dont think I am entitled to any compensation, as some people think. Its more a matter of being taken advantaged of. Like you basically said; Many more people will buy the iphone now, apple will make more sales, (most) people will not be mad about the price drop, but happy as they get 100 bucks credit, (which will actually act like a sales promotion for apple) and finally people will have "faith" in apple. I just can't believe how people don't see this as pure manipulation.
mudflap
macrumors 6502a
Missing the point
Your $1500 iMac 400MHz DV SE didn't have its price cut 33% to $1000 bucks, 69 days after you bought it.
Your $1500 iMac 400MHz DV SE didn't have its price cut 33% to $1000 bucks, 69 days after you bought it.
I think I'm going to complain that Apple charged me TOO much money for my iMac 400MHz DV SE. It was about $1500 back in 2000. For $1500 now, I get a system about 20x the speed, storage, memory, etc. I've been ripped off. That's way more than $200.
beetlejuice
macrumors newbie
hahaha, yeah i have a good sense of humor, and i really do hope you are right. I spent 3 hours going to the apple store earlier today after talking to a customer rep who told me that they were giving full refunds to everybody, only to find they were'nt. (yeah it was naive of me to think they were and no i dont think they had to do anything) And then coming home to read steve jobs letter. I have invested alot of time into this.
JGowan
macrumors 68000
I'm amazed at how many babies there are on this forum. Your behavior is embarrassing.
Many people who bought an iPhone early at $499/$599 also had to shell out $150 or so to get out of contracts with other phone companies. Then they had to buy a $30-40 case for it and then probably D/L'd a movie or two ($20) and perhaps another few albums ($30). They probably laid out $69 for Applecare just to be on the safe side. With tax, some probably got real close to spending $1000 for this device really. And many bought two, one for them and one for the Mrs. Some big bucks. The people who bought these were not poor starving students who used their grocery money for 3 months to get the funds for this. Those who bought had the money to spend and felt it was a fair deal. They're most likely ticked off because, in one day, they went from being Mr. Cool at the office to being Mr. Fool at the office ("Gee, Ted. Sorry you got robbed, bro [titter titter tee hee tee hee"]).
The Computer world works generally on a 6 month cycle with new stuff coming down the pike twice a year. The Cell Phone world is much faster because there's so much money to be made so companies are rolling out new stuff all the time. A great computer could cost thousands; a great phone costs hundreds. The people buying the most phones are probably under 30 and have just enough money to take care of bills and feed the phone habit. Lots of kids just have to have the hottest new phone. Their computer might suck, but they'll pull out the glam when they're in public.
Since Apple is not going the route of every other company which produces 10-20 models and hopes they appeal to enough people, Apple put all their energy into one design and made sure it was cool enough to appeal to anyone. Now, instead of having another model to fling at people, they're flinging a better price at them.
HERE'S WHAT'S FUNNY: the same people who were complaining yesterday were probably the same people busy justifying the original price when they first bought it when their friends were surprised at the money they plunked down. It was "totally reasonable" two months ago, but today "they were robbed by the Evil Empire'. I hope you get made fun of BIG TIME by the same birds-of-a-feather-baby types you probably associate with.
People who are ticked off because they were there on day 1 and bought at the high price have no one to blame but themselves. If you were one of the complainers, Steve shouldn't have done a damn thing for you.
---
Lots of people made the decision to wait for Version 2, either because they felt the price was too high or the device was somewhat immature and needed time to grow. There's no right or wrong choice. I bought the first iPod on Novemer 12, 2001 for $399. It had a very tiny monochrome screen, did music and not much else (certainly no photos or videos). It "only" had 5GB of space. Today's 160GB iPod holds the equivalent content of 32 original iPods and it does everything but make soup. Oh and it's $50 cheaper...
My first iPod was still a bargain.
Many people who bought an iPhone early at $499/$599 also had to shell out $150 or so to get out of contracts with other phone companies. Then they had to buy a $30-40 case for it and then probably D/L'd a movie or two ($20) and perhaps another few albums ($30). They probably laid out $69 for Applecare just to be on the safe side. With tax, some probably got real close to spending $1000 for this device really. And many bought two, one for them and one for the Mrs. Some big bucks. The people who bought these were not poor starving students who used their grocery money for 3 months to get the funds for this. Those who bought had the money to spend and felt it was a fair deal. They're most likely ticked off because, in one day, they went from being Mr. Cool at the office to being Mr. Fool at the office ("Gee, Ted. Sorry you got robbed, bro [titter titter tee hee tee hee"]).
The Computer world works generally on a 6 month cycle with new stuff coming down the pike twice a year. The Cell Phone world is much faster because there's so much money to be made so companies are rolling out new stuff all the time. A great computer could cost thousands; a great phone costs hundreds. The people buying the most phones are probably under 30 and have just enough money to take care of bills and feed the phone habit. Lots of kids just have to have the hottest new phone. Their computer might suck, but they'll pull out the glam when they're in public.
Since Apple is not going the route of every other company which produces 10-20 models and hopes they appeal to enough people, Apple put all their energy into one design and made sure it was cool enough to appeal to anyone. Now, instead of having another model to fling at people, they're flinging a better price at them.
HERE'S WHAT'S FUNNY: the same people who were complaining yesterday were probably the same people busy justifying the original price when they first bought it when their friends were surprised at the money they plunked down. It was "totally reasonable" two months ago, but today "they were robbed by the Evil Empire'. I hope you get made fun of BIG TIME by the same birds-of-a-feather-baby types you probably associate with.
People who are ticked off because they were there on day 1 and bought at the high price have no one to blame but themselves. If you were one of the complainers, Steve shouldn't have done a damn thing for you.
---
Lots of people made the decision to wait for Version 2, either because they felt the price was too high or the device was somewhat immature and needed time to grow. There's no right or wrong choice. I bought the first iPod on Novemer 12, 2001 for $399. It had a very tiny monochrome screen, did music and not much else (certainly no photos or videos). It "only" had 5GB of space. Today's 160GB iPod holds the equivalent content of 32 original iPods and it does everything but make soup. Oh and it's $50 cheaper...
My first iPod was still a bargain.
Attachments
What the hell are you on about? You are acting like this is some sort of plot to screw the public over! Every sensible person knows that a business is about making money for itself and the share holders. What do you want them to do? Not play the game? Not get onto prime time news? This gets a company airplay, which helps to sell more products. The more iPhone product Apple ships out there, the more it benefits us because more users will play / hack and bring us new creations we can enjoy on our phone!
Also, it is a fact that prices ALWAYS come down. Again, sensible people KNOW this. However, If I am happy to spend "X" amount on a product today, that is it, I am HAPPY about my decision. If I am not happy, and think the product is not worth it, I wait until I believe it is at the price point I want to pay!
Now, Apple has given the early adopters a $100 store certificate. You can think of it like you have... That it is a publicity stunt. And guess what, that does not make them evil, it makes them smart. PLUS, you get $100 back to spend in store. Nothing wrong with that. Or you can think that they are just trying to keep loyal fan's happy.
Well done apple.