What happened when Apple dropped the price?

[profmjh]

Someone mentioned an iPhone release where Apple dropped the price. What happened with people who'd already bought one.

Because it's slowing dawning on me that the Apple Watch is very expensive and it may not be as popular as I thought. Maybe a price drop is not that far off. If there is one, are we early adopters going to feel like real chumps?

 

[totten76]

I'm sure there will be price drops in the future. But how much do you think Apple will actualyl drop it? They are selling $18,000 watches that thousands of people want. If consumers are willing to pay a premium, they will continue to sell high.

 

[Mr.C]

I don't know of any iPhone price drop at launch. The only thing close to that is when with the original iPhone they discontinued the 4GB model soon after launch and I believe they may have dropped the price of the 8GB model but this was several weeks or months after the launch and it was because they discontinued the 4GB model. There is no way the price of the Watch is going to drop anytime soon and if it does it's likely to happen when version 2 is released and they decide to continue selling version 1 for some reason.

 

[zacheryjensen]

Someone mentioned an iPhone release where Apple dropped the price. What happened with people who'd already bought one.

Because it's slowing dawning on me that the Apple Watch is very expensive and it may not be as popular as I thought. Maybe a price drop is not that far off. If there is one, are we early adopters going to feel like real chumps?

The first iPhone price dropped significantly only a few months after the launch and to appease those that bought it at the higher price, $100 gift cards for Apple Store were given to them. Source: I got one.

And to be honest, I never felt bad about the situation and would not have cared if I didn't get anything. I think it's stupid the way people freak out when a product price drops unexpectedly. If you didn't think it was worth it at the original price you shouldn't have bought it. Still, Apple soothed the whiny consumers and it got me a nice wireless keyboard

 

[JayLenochiniMac]

Apple has learned its lesson. There won't be a price drop mid-year.

 

[profmjh]

The first iPhone price dropped significantly only a few months after the launch and to appease those that bought it at the higher price, $100 gift cards for Apple Store were given to them. Source: I got one.

And to be honest, I never felt bad about the situation and would not have cared if I didn't get anything. I think it's stupid the way people freak out when a product price drops unexpectedly. If you didn't think it was worth it at the original price you shouldn't have bought it. Still, Apple soothed the whiny consumers and it got me a nice wireless keyboard

Oh, that would be OK. I could (nearly) buy a new strap with that if the same thing happened again.

 

[Julien]

The original iPhone price reduction was different situation. Apple was doing something different in selling an unsubsidized smart phone. Also we original buyers got $100 if I remember correctly.

 

[cambookpro]

Oh, that would be OK. I could (nearly) buy a new strap with that if the same thing happened again.

I somehow doubt it will - Apple, even just 8 years ago, were a completely different company. Sales were in the thousands when the iPhone price was dropped, not the millions as the watch will undoubtedly sell in.

 

[melman101]

iPhone dropped $200 after release in two months.

They gave early adopters a $100 dollar apple gift card.

 

[DreamPod]

And Apple gave every Apple employee, including ones working their retail stores, an iPhone for free, and some of those employees tried to get the $100 gift card. They were summarily fired.

 

[rjlawrencejr]

I seem to recall receiving an email with the $100 credit as a barcode, but I honestly and I can't recall exactly how I received the refund nor how I spent it.

 

[Rogifan]

Someone mentioned an iPhone release where Apple dropped the price. What happened with people who'd already bought one.

Because it's slowing dawning on me that the Apple Watch is very expensive and it may not be as popular as I thought. Maybe a price drop is not that far off. If there is one, are we early adopters going to feel like real chumps?

$349 is very expensive?

 

[profmjh]

$349 is very expensive?

I'm not getting a Sport.

 

[Mr.C]

$349 is very expensive?

It is very expensive. My Pebble cost me £150 and I thought that was expensive. Until then I had never spent more then about £30 on a watch. Granted the Watch does a lot more but it's still a lot of money to spend on a watch in my opinion. As it happens I'm planning on getting the SS with a sport band and that's going to cost me approximately $780 which is a lot of money for me.

 

[camtechman56]

Someone mentioned an iPhone release where Apple dropped the price. What happened with people who'd already bought one.

Because it's slowing dawning on me that the Apple Watch is very expensive and it may not be as popular as I thought. Maybe a price drop is not that far off. If there is one, are we early adopters going to feel like real chumps?

I don't see a problem. I know the price I'm going to pay, and am willing to pay it. so if they drop the price then, they drop it, and I won't be angry. however if the watch does not perform the way it is advertised. then I would be angry. but we all know the asking price, and the price is rather steep. If you feel this scenario will happen, then hold off on your order and see, then order later, not a problem

 

[eoblaed]

If there is one, are we early adopters going to feel like real chumps?

I highly doubt there will be.

But, if there were, no, us early adopters won't feel like chumps. Or, at least, we shouldn't feel like chumps. If the watch is not worth to you the current price, don't buy it. Even if the price drops later, you'll know you bought it when you did, for how ever much you did, because at the time it was worth that much to you.

I won't care a bit if 6 months later, or a year later, or whatever, if the price drops some. I'm purchasing the watches I am because the value they'll provide me is worth what I'll be paying.

 

[AFDoc]

Because it's slowing dawning on me that the Apple Watch is very expensive and it may not be as popular as I thought.

two things....1. If you believe apple watch is "very expensive" then you're obviously not the type of person apple is marketing the watch to 2. It will be as popular or more than you though don't worry yourself.

As far as we "chump" early adopters...... again, don't worry yourself it's our money.

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Oh, that would be OK. I could (nearly) buy a new strap with that if the same thing happened again.

No you won't... it's very expensive... you said so yourself.

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I'm not getting a Sport.

Seems like you didn't want one at all... now you do six hours later.... lol.

 

[kdarling]

Someone mentioned an iPhone release where Apple dropped the price. What happened with people who'd already bought one.

Heh. What happened is that there was an online riot, the only one I've ever seen overtake Apple's own forums.

I was a contributor to the official Apple Help forum at that time. Now, you have to understand that Apple deletes posts they deem too critical. They say it interferes with people giving each other help.

Anyway, two months after the iPhone came out, sales were already dropping. So they dumped the 4GB model altogether, and lowered the price of the 8GB model by 1/3... a $200 discount... which inflamed a lot of early adopters who felt that they had supported Apple with their new phone, but Apple had dumped on them in return.

The Apple forum began to explode with angry posts. Apple, as usual, went into full 1984 delete mode and dumped them into the memory hole as quickly as they could. I personally watched hundreds of furious posts get deleted, and I would not be surprised if the number was easily into the thousands.

However, it soon became clear that there was no way for the moderators to keep up with the angry in-flow of posts... so eventually they simply gave up and let everyone vent freely. I've never seen anything like it on the Apple forums, before or since.

The next day Jobs issued a statement. First he excused their actions by saying that this was "life in the technology lane". But then he manned up and said, "We need to do a better job taking care of our early iPhone customers as we aggressively go after new ones with a lower price. "Our early customers trusted us, and we must live up to that trust with our actions in moments like these."

He then gave two solutions:

1) People who had bought one in the past two weeks could return it, minus a 10% ($60+) restocking fee.

2) Accept a $100 store credit, which was a clever way of getting people to come back and spend more money.

I don't think Apple will repeat the same mistake.

 

[matrix07]

And Apple gave every Apple employee, including ones working their retail stores, an iPhone for free, and some of those employees tried to get the $100 gift card. They were summarily fired.

lol.

Good for them!

 

[chris975d]

$349 is very expensive?

You have to remember...$349 is more than most people paid out of pocket for their iPhone. Most people(not people here on MacRumors) have no idea or understanding that even though they paid $199 for their iPhone, that's a subsidized price and $450 of that price is paid by the carrier and then gotten back from the customer through their monthly payment to their carrier. So, to the average iPhone buyer, they are looking at an Apple watch, even at in its cheapest form, is more expensive than what they paid for the iPhone they are carrying. That is something Apple is going to have to overcome...the same subsidy model that actually propelled the iPhone (and Apple) to where they are now could bite them in the butt a little on sales of the watch.

 

[Hummingbird12]

two things....1. If you believe apple watch is "very expensive" then you're obviously not the type of person apple is marketing the watch to

"Ooh look at me, I'm so important."

 

[AFDoc]

You have to remember...$349 is more than most people paid out of pocket for their iPhone. Most people(not people here on MacRumors) have no idea or understanding that even though they paid $199 for their iPhone, that's a subsidized price and $450 of that price is paid by the carrier and then gotten back from the customer through their monthly payment to their carrier. So, to the average iPhone buyer, they are looking at an Apple watch, even at in its cheapest form, is more expensive than what they paid for the iPhone they are carrying. That is something Apple is going to have to overcome...the same subsidy model that actually propelled the iPhone (and Apple) to where they are now could bite them in the butt a little on sales of the watch.

I totally get what your're saying but I don't think they will hurt for sales at all. I don't wear watches typically....do wear a fit bit from time to time but I'm getting one simply for the notification aspect and I suspect many are doing the same. The original iPhone had no subsidy at launch so I suspect the watch will do just fine.

"Ooh look at me, I'm so important."

That's what you got out of that quote huh..... Ok.

I get this..... Apple is marketing this to certain groups of people.... and those thinking $349 is expensive isn't one of them. I though it was pretty clear the first time but I'm happy to explain it again.

 

[MH01]

$349 is very expensive?

Don't forget that some people may not have iPhones, so the cheapest way they can experience an apple watch is 1K cheapest iPhone + cheapest apple watch.

 

[chris975d]

I totally get what your're saying but I don't think they will hurt for sales at all. I don't wear watches typically....do wear a fit bit from time to time but I'm getting one simply for the notification aspect and I suspect many are doing the same. The original iPhone had no subsidy at launch so I suspect the watch will do just fine.


pretty clear the first time but I'm happy to explain it again.

That's what this whole thread is about though...on the first unsubsidized iPhone, Apple had to drop the price just a few months into it to try and spur sales. It didn't sell like Apple wanted. People couldn't/wouldn't pay full unsubsidized price for it.

 

[AFDoc]

That's what this whole thread is about though...on the first unsubsidized iPhone, Apple had to drop the price just a few months into it to try and spur sales. It didn't sell like Apple wanted. People couldn't/wouldn't pay full unsubsidized price for it.

But that was what.....$600?