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iPhone price cut: Official response from Steve Jobs

An early iPhone buyer

I bought my iPhone over a month ago.

I paid the full $699.

I never expected Apple to give me a rebate, and was really grateful that they gave me a gift.

If I could have seen into the future and waited until the price dropped and save me a $100? NO. NOT AT ALL!!

That's because I would have not had the choice to use it this past month. This is the best toy I've ever had and use it heavily every day....

I would have paid $1000 for it 6 months ago.:D

To those who purchased and complained...seriously, you live in a capitalist system....if you didn't live in that system you'd never even get an iPhone in the first place.
 
First of all, some people are saying that Apple always drops the prices of their products within six months. Okay, well are you forgetting that the iPhone has only been out for two? If Apple would have dropped the price six months after the release, I would not have complained, and as I can not speak for anyone else, I don't think a lot of other people would've complained either.

The fact of the matter is that Apple didn't just drop the price, they dropped it by 200 dollars! It took a year for the 5G to be dropped 50 dollars! Even if Apple dropped the price by 50 dollars, or even 100, I don't think that there would be this many complaints.
 
Bosunsfate said:
I bought my iPhone over a month ago.

I paid the full $699.

I never expected Apple to give me a rebate, and was really grateful that they gave me a gift.

If I could have seen into the future and waited until the price dropped and save me a $100? NO. NOT AT ALL!!

That's because I would have not had the choice to use it this past month. This is the best toy I've ever had and use it heavily every day....

I would have paid $1000 for it 6 months ago.:D

To those who purchased and complained...seriously, you live in a capitalist system....if you didn't live in that system you'd never even get an iPhone in the first place.
Click to expand...


Wow! You paid $699. I would be really mad if I was you considering no iPhone was ever $699. You paid $100 more than anyone did, even 2 months ago. YOU really do live in a capitalist system...
 
btallada9870 said:
First of all, some people are saying that Apple always drops the prices of their products within six months. Okay, well are you forgetting that the iPhone has only been out for two? If Apple would have dropped the price six months after the release, I would not have complained, and as I can not speak for anyone else, I don't think a lot of other people would've complained either.

The fact of the matter is that Apple didn't just drop the price, they dropped it by 200 dollars! It took a year for the 5G to be dropped 50 dollars! Even if Apple dropped the price by 50 dollars, or even 100, I don't think that there would be this many complaints.
Click to expand...


I'm totally with you. I think this is the point that most of the non buyers don't get and refuse to get.
 
you guys can say all you want but all our complaining got us somewhere so I really don't feel bad about it. I just don't understand why you guys keep on bashing on us even after we won. Jobs didn't have to give us anything we were just saying what was on our minds. It is America and a public forum so we have that right. No one put a gun to my head and forced me to buy an iphone. Just like no one is putting a gun to your head to read this thread. So why don't you guys just stop complaining. It was obvious that Jobs felt like he had to respond to the iphone buyers because $100 back is not all that cheap for all the iphones sold.

Now when is this rebate thing going to be posted on the Apple site so I can jsut sign up and forget about this mess.
 
Can I go back to the Apple store with my receipt and request the credit or do I have to wait for an official announcement?
 
mikef07 said:
No they are simply saying" We know our early adopters are whining babies and we realize this and want to give them a pacifier. We have done so with this $100 offering. We also never intend to drop prices again so quickly because we see what happens. Thanks for allowing us to keep our margins higher in the future".


That is what they are saying.
Click to expand...


The last thing Steve Jobs would call his customers is whining babies. This would be a very immature approach by an immature person with short term selfish needs.

He offered the $100 store credit to compensate recent iPhone owners, so that Apple would not be selling an outdated product as new.

Most people who earn their keep in this world want a good value.

The fact that his most valuable customers expect a high standard from Apple is an asset.

The early iPhone buyers are also the successful kind of spending people Apple doesn't want to lose.

That's what the store credit says.
 
agree wih both sides... technology always drops but the 2 month drop caught everyone off guard. Apple did a great thing with the $100 credit, but in the end, apple will get the $100 back from everyone and more with future purchases. Good PR move.
 
I, for one, think this was planned (or probably a brought up concept, if you will) way before release of the iPhone by Steve and co. Us early (or "beta") adapters were to pay this said "premium" for being the first users to go out there and buy the phone (while pretentiously advertising it for free). That would give the phone a high-class smugness, urging people to take a look into iPhone. "You always want what you can't afford." That was successful, as almost 1 million phones were sold. Steve knew that once potential buyers saw a $200 price reduction, customers would automatically register that as MAJOR savings, and the phones would start selling by the boatload.

Seeing as early customers basically just paid a b.s. premium of $200 dollars, Steve knew that they'd be pretty mad. And what does he do? He offers a store credit--not a rebate/or refund, but a store credit for $100. It's almost like a win-win situation: You charge that excessive premium fee for early buyers (whom are pretty satisfied with your product), drop the price down for new, happy customers, and you make your early adapters happy by crediting them back--to your store--while still profiting from the $200. Since the credit's going right back to your store, anyway.

Conspiracy?
No.

Great marketing skills?
Absolutely.
 
I already sold my shares. Had them nearly ten years now. I sold them. I'm not going to invest in a serious financial enterprise that gives into whinging wusses like that.
 
OK, then where is it?

Am I missing something? The "open letter" said the details would come "next week", which is this week. I know there are a couple of days left in the week, but am concerned I've gone blind or something.
 
OnlyMarcusCannn said:
I, for one, think this was planned (or probably a brought up concept, if you will) way before release of the iPhone by Steve and co. Us early (or "beta") adapters were to pay this said "premium" for being the first users to go out there and buy the phone (while pretentiously advertising it for free). That would give the phone a high-class smugness, urging people to take a look into iPhone. "You always want what you can't afford." That was successful, as almost 1 million phones were sold. Steve knew that once potential buyers saw a $200 price reduction, customers would automatically register that as MAJOR savings, and the phones would start selling by the boatload.

Seeing as early customers basically just paid a b.s. premium of $200 dollars, Steve knew that they'd be pretty mad. And what does he do? He offers a store credit--not a rebate/or refund, but a store credit for $100. It's almost like a win-win situation: You charge that excessive premium fee for early buyers (whom are pretty satisfied with your product), drop the price down for new, happy customers, and you make your early adapters happy by crediting them back--to your store--while still profiting from the $200. Since the credit's going right back to your store, anyway.

Conspiracy?
No.

Great marketing skills?
Absolutely.
Click to expand...

Totally agree.
Apple is being as innovative with their sales as with their products.
I also think that most product leaks are purposefully set up by apple themselves.
Great marketing indeed, suckaz!
 
boringName said:
Am I missing something? The "open letter" said the details would come "next week", which is this week. I know there are a couple of days left in the week, but am concerned I've gone blind or something.
Click to expand...

Yeah, I don't think it'd be very hard for Apple to implement something like this. What's taking them so long?

Enter Serial Number -> Checks when iPhone was activated -> Enter e-mail address -> $100 GC in your inbox.
 
NewSc2 said:
Yeah, I don't think it'd be very hard for Apple to implement something like this. What's taking them so long?

Enter Serial Number -> Checks when iPhone was activated -> Enter e-mail address -> $100 GC in your inbox.
Click to expand...

I would think it would have to be more thorough than this. It would have to go to the original purchaser. You'd need alot more than a serial number to verify this. I do have an order number on my sales receipt so if you throw that into the mix, I can't think of a reason a formula like the one proposed by NewSc2 can't work...

That being said, how much longer do we have to wait, I want to buy an Airport Express!!!
 
Rom Rim said:
I already sold my shares. Had them nearly ten years now. I sold them. I'm not going to invest in a serious financial enterprise that gives into whinging wusses like that.
Click to expand...

I think you made the wrong decision (if you're talking long-term investment), it's more about appeasing your bread-and-butter customers, not about giving in to "whining wusses."

I personally would have hesitated in buying another Apple product upon release knowing that they might lower the cost DRASTCIALLY within 2 months. That's can't be good for business, and I know I'm not alone in this. The $100 store credit was a very nice gesture and has made this newer Apple customer very happy and might have secured my business for future products by appeasing those fears.

I for one, am considering making Apple one of my investment vehicles because of this vision. In my mind, a company that rides the cutting edge of innovation and technology is a good investment, especially one like Apple who almost NEVER releases a product that doesn't satisfy...not to mention their SUPERB customer service...

Just my 2 cents of course.
 
Price cut that made Apple MILLIONS

I am guilty of paying the full $599 for my iPhone the day it came out. With the new price-cut, not only am I upset for the same reasons as everyone else but as an accountant I understand the financial implications of the 200 dollar price adjustment.

In all of my high tech client experience (some of which are floundering projector manufacturers) pricing reductions or changes are set in the range of 6-12 months in advance. Given this fact, I am fully convinced that Apple completely knew that the 599 price target was too high when the iphone hit the stores. Even though they knew this, they went ahead and did it. All the while it resulted in the raising of an extra (very rough figures here) 150 million in capital.

I come to this figure by taking 1 million x (200 price difference less the 50 dollars in cost of the 100 dollar apple gift card assuming each one is used). One has to remember that the store credit to apple is not a full 100 dollars as they are retaining profit, which I have estimated to be 50% GM for purposes of this analysis.

NOW WE GET TO THE FUN PART! Assuming the extra money was used to build more iphones, Apple now has an extra 150 million dollars of capital and consequently 150 million dollars worth of iPhones after production costs. Sell through those in a few months and Apple has successfully turned what seemed to be a mistake into an additional 300 million in gross margin.

Oooh that makes me feel good. Thats going straight to the bottom line folks. This is the way of the future. I need a sip of what Steve is having at the Genious bar. This is cutting edge marketing. Makes me feel great now being the guy that gets heckled for buying the phone for 200 too much. What am I gonna do with another 100 dollars at Apple. Oh I know, I will buy an iTouch.
 
still whining about the price drop eh guys??? anyways, check the letter again. I just got my $100 giftcard today :D
 
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