iSorry
Well, that was fast. Apple’s decided to offer ornery iPhone early adopters a $100 store credit to make amends for the bad feelings inspired by yesterday’s price cut. Apple CEO Steve Jobs announced the decision in a letter to iPhone customers.
To all iPhone customers:
I have received hundreds of emails from iPhone customers who are upset about Apple dropping the price of iPhone by $200 two months after it went on sale. After reading every one of these emails, I have some observations and conclusions.
First, I am sure that we are making the correct decision to lower the price of the 8GB iPhone from $599 to $399, and that now is the right time to do it. iPhone is a breakthrough product, and we have the chance to “go for it” this holiday season. iPhone is so far ahead of the competition, and now it will be affordable by even more customers. It benefits both Apple and every iPhone user to get as many new customers as possible in the iPhone “tent.” We strongly believe the $399 price will help us do just that this holiday season.
Second, being in technology for 30-plus years I can attest to the fact that the technology road is bumpy. There is always change and improvement, and there is always someone who bought a product before a particular cutoff date and misses the new price or the new operating system or the new whatever. This is life in the technology lane. If you always wait for the next price cut or to buy the new improved model, you’ll never buy any technology product because there is always something better and less expensive on the horizon. The good news is that if you buy products from companies that support them well, like Apple tries to do, you will receive years of useful and satisfying service from them even as newer models are introduced.
Third, even though we are making the right decision to lower the price of iPhone, and even though the technology road is bumpy, 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.
Therefore, we have decided to offer every iPhone customer who purchased an iPhone from either Apple or AT&T, and who is not receiving a rebate or any other consideration, a $100 store credit toward the purchase of any product at an Apple Retail Store or the Apple Online Store. Details are still being worked out and will be posted on Apple’s Web site next week. Stay tuned.
We want to do the right thing for our valued iPhone customers. We apologize for disappointing some of you, and we are doing our best to live up to your high expectations of Apple.
Steve Jobs
Apple CEO
Comments
I am happy to see this. Anyone who purchased early knew this was a likely event.
Posted by Charles Jundt at September 6th, 2007 at 4:15 pmI can now consider purchasing one.
Apple fans are Apple fans.
Apple fans are amazing. Over at macrumors.com they were defending the price cut as “planned all along”.
I think Apple is making a mistake lowering the price that much, and misjudging the effect of it compounds the error. The iPhone may not have sold as much as they had hoped, but I love mine and I didn’t much mind the price.
It’s a premium product, and it’s a very different sort of device, that’s a little hard for many people to realize they want/need.
Cutting the price this way, and on top of that retroactively compensating customers, sets the complete wrong tone for the product, cuts into profit, and is not likely to dramatically affect sales.
Posted by Peter Magnusson at September 6th, 2007 at 5:36 pmHA HA HA… The Apple fanboys are so gullible!!!
The reason that Jobs announced a $100 rebate to people that bought the iPhone within 14 days is because AT&T allows people to return iPhones within 14 days for a refund minus a 10% restocking fee.
Lots of people must have started returning the phones and buying them for the discounted price (which is very expensive for Apple), so they figured that if they offer $100, and you’re only going to get $540 back for a return after the 10% restocking fee, you’re probably not going to bother returning the phone. It’s pure economics.
Here’s a quote from AT&T’s site:
“Apple branded equipment is covered by a 14-day return policy and must be returned to the original point of purchase. If the Apple branded equipment is returned unopened and in the original shrink wrapping, it will be refunded back to the original payment method. Opened Apple branded equipment that is returned within 14 days will be subject to a 10% open box restocking fee. All products must be packed in their original, unmarked packaging including any accessories and manuals that shipped with the product.”
Trust me, Jobs doesn’t care about the users, it’s all about the Benjamins. Once again he’s sucked everyone into the Apple spin zone.
Posted by Ilya R at September 6th, 2007 at 9:04 pm