[k2director]

Originally Posted by mduell 

For all the people who are unhappy, you're selfish. You were happy to pay $600 for it two months ago, and you're just upset because now someone else can have the same device for less. If you didn't think the iPhone was worth $600 two months ago, you shouldn't have bought it.

You're deranged. I was happy to pay a *fair* price for the iPhone, and expected Apple to set a fair price--ie, enough to make a reasonable profit (like it does on its other products) but not to simply do a money grab by taking advantage of the enthusiasm of some of its biggest early supporters (who Apple clearly does value, and relies on strategically). My irritation has nothing to do with the fact that other people can get the iPhone for cheaper now; in fact, I'm glad that I'll have an easier time persuading a number of family members and friends to get the phone now. But a 33% price drop after only 2 months on the market is absolutely unheard of, and clearly DOES leave early adopters feeling burned.

By the way, if it's so unreasonable to expect Apple to give its earliest iPhone customers some token of appreciation for their support, why did Apple give early Aperture 1.0 owners a $200 rebate when Aperture 1.1 was released with a much lower price? Here's the link:

Apple - Product Promotions - Aperture e-coupon

It shows that even Apple knows not to seriously piss off its core base, when it needs to make a pricing correction that probably should have been made from the get-go.

[Nodnarb]

Does anyone have a link to email apple?

I'm sure thousands of people have emailed about this already...I figure if they get enough, they may do something about it.

I've been looking on their site for like 10 min and I can't find it, contact us just goes to other support pages. And also, it will be good to post it in this thread, so everyone can email who has the same problem.

Still 12 hours later, and just as annoyed...

[pyrite]

Is this price drop really very different to buying a top end 600 dollar GPU for your PC? in no time it will be replaced with a better product and drop hugely in value.

Early adopters should be prepared for drops such as this, it was earlier and larger than I expected - but inevitable. You've bought a top end, high-tech device. It happens.

[pyrite]

Interesting Aperture link... agreed that it would certainly be a welcome act of good will from Apple. Enthusiasts and early adopters are important customers.

[k2director]

Originally Posted by pyrite 

Is this price drop really very different to buying a top end 600 dollar GPU for your PC? in no time it will be replaced with a better product and drop hugely in value.

Early adopters should be prepared for drops such as this, it was earlier and larger than I expected - but inevitable. You've bought a top end, high-tech device. It happens.

Yes, it's different. Those GPU manufacturers don't announce the product, let the hype and anticipation build to a boil over 6 months, then ship...and only 2 months later, slash it by 33% while saying it's so successful.

People are upset because of the super-quick, unheard of short period of time before the price drop. Please name another major consumer electronics gadget or computer that drops in price by 33% only two months after shipping. I don't think anyone can name any examples...

[pyrite]

Originally Posted by k2director 

Yes, it's different. Those GPU manufacturers don't announce the product, let the hype and anticipation build to a boil over 6 months, then ship...and only 2 months later, slash it by 33% while saying it's so successful.

People are upset because of the super-quick, unheard of short period of time before the price drop. Please name another major consumer electronics gadget or computer that drops in price by 33% only two months after shipping. I don't think anyone can name any examples...

Fair enough, point well made. I guess it's not so much the fact that they dropped the price so early, but dropped it by TWO HUNDRED DOLLARS so early. Don't get me wrong, I'd be pissed off too, just trying to make a comparison..

[pooka]

What a bunch of kissasses. I love it. Hope this crap happens to you guys the next time you buy a car.

"But.. but... what do you mean I owe $20,000 over the value? I bought it a month ago!?"

"Thems the breaks, buddy. Supply and demand."

Better yet, maybe Leopard will be free come December.

[pyrite]

Originally Posted by pooka 

What a bunch of kissasses. I love it. Hope this crap happens to you guys the next time you buy a car.

"But.. but... what do you mean I owe $20,000 over the value? I bought it a month ago!?"

"Thems the breaks, buddy. Supply and demand."

Better yet, maybe Leopard will be free come December.

...wasn't kissing ass pooka, quite the opposite.
I'm no fanboy, I don't even own a mac at the moment (waiting for next gen of MBP). Just trying to make a comparison, im sick of people complaining every time apple puts out a new product or makes any announcement. They're not perfect, to be sure, but for crap's sake...

Someone must bring balance to the force, i was just putting something in for the sake of discussion

[pooka]

Dude, no worries. That wasn't specifically directed at you. More so at everyone feeling the "daddy" instinct to educate us poor dumb schmucks how things are out in the real world. Yes, I'm not that intelligent. I've consistently invested more time and money in a platform that for the longest time seemed destine to fail. 400mhz G4 anyone??? How long did that last...

Anyway, I'm not stranger to depreciation. We're all aware of how technology works. Buy something today, a few weeks later its obsolete. Yay for progress. Maybe we're all massively retarded, but this seems just a wee bit different. More like shady car dealerships sticking it to customers when they want that hot new Mustang. I expect it from Ford....

For me, its not really about the money. It's about Apple putting its most eager supporters over the barrel and snaking a few extra bucks from their pockets. Think what you will, but I'll never make this mistake again. Everyone kissing Apples ass can be first in line next time to take it in the ass.

[trancepriest]

I got my iPhone for free from a wealthy business partner. So I'm not financially hurt by this move. I am pissed off though... I think it's a complete betrayal of early adopters. I won't recommend Apple for anything from here on out. The darn product wasn't even updated with something better.. 8 frigging weeks??? And all the people on here talking about whiners, etc... my computer system cost 20 grand. I blow 200 bucks at night clubs on weekends. Big difference between a premium product and a rip off product.

[pyrite]

Originally Posted by pooka 

...its not really about the money. It's about Apple putting its most eager supporters over the barrel and snaking a few extra bucks from their pockets.

I can definitely understand your thinking... those who purchase early will often be enthusiats and loyal customers. Punishing them with a decision like this (without compensation) is an odd choice. Maybe they could offer store credit for the difference, or something similar...

[GSixZero]

While I see where you guys are coming from, this thread is a joke.

Frankly I think if you could afford $600 for an iPhone two months ago, you can afford to be disappointed that it's now cheaper. You got what you paid for.

Better yet, think of it this way: You can buy another and your average cost will only be $499! You just saved $100 on that first iPhone!

[Stogieman]

Originally Posted by k2director 

People are upset because of the super-quick, unheard of short period of time before the price drop. Please name another major consumer electronics gadget or computer that drops in price by 33% only two months after shipping. I don't think anyone can name any examples...

The only example I can think of that comes close to this is the Motorola Razr. It was introduced in Nov. 2004 at a cost of $500/$600. By August 2005 it had dropped to $199, a whopping 60%/66%.

[icruise]

That's still almost a year, though. What did it cost in January 2004?

[Nodnarb]

Has anyone here actually called Apple or gone into a store?

The only reason I'm hesitant to do so is because I bought mine at an AT&T store (on launch day, figured there'd be less people) so I'm sure when Apple finds that out they'll tell me tough luck or go deal with AT&T.



On a side-note, anyone see this Q&A with Jobs after the keynote?

Q: What do you say to customers who just bought a new iPhone for $599? Sorry?
A: That's technology. If they bought it this morning, they should go back to where they bought it and talk to them. If they bought it a month ago, well, that's what happens in technology.

And also, makes him seem like even more of a dick:

Q: Many people already have Beatles music on CDs. Will they really buy it online if they already own it?

A: I do expect them to, yes. That's been the case with other music, as well.

I own every Bob Dylan album ever, but I buy a lot of it on iTunes, because I guess I'm just too lazy to rip it from the CD.

If I was a billionare, I'd completely agree with his logic. Unfortunately...

[JonoMarshall]

You paid the advertised price for the iPhone, what's the problem? You have no grounds for compensation. Gees, some people.

[subego]

That the Apple Plan™ was to ape the cellphone business model is the most ridiculous crock of **** I've ever heard.



iPhone: Hi, I'm an iPhone...

Cellphone: ...and I'm a cellphone.

iPhone: Well, I've gotten pretty close to this 'convergence' thing people talk about. Maybe you didn't know you needed a touch screen internet thing, but I've got that, and it's like waaay cool.

Cellphone: Can you do porn?

iPhone: Uh, yeah, I guess. I can do porn. Uh... So... iPod, camera, internet touch thingy...

Cellphone: Porn.

iPhone: Yes... porn. Uh... I have that iconic Apple style you know about, so when you see me, you know it's me. Oh, and I've negotiated a pretty sweet contract with AT&T, so I get to call the shots instead of them.

Cellphone: Wow. Pretty snazzy.

iPhone: So, what do you do?

Cellphone: Every six months three different versions of me come out with slightly different features in completely different shapes.

iPhone: Shapes?

Cellphone: Shapes. It's all about the shapes. People love different shapes. Do you even have a cellphone?

iPhone: Well, I've had this BlackBerry for a couple of years...

Cellphone: A couple of years? The SAME one?!?

iPhone: Yeah, I didn't need a differ...

Cellphone: What shape is it?

iPhone: Well, sort of oblong and pointy at the end.

Cellphone: Oh, for Christ's sake. No wonder you didn't get a new one. If they had a curvy one, or a flippy one, or a sort of round slidey thing.

iPhone: Flippy?

Cellphone: People love Flippy. Flippy is much better than porn. Aren't you Flippy?

iPhone: Uh...

Cellphone: Shhhhh. Flippy is very sensitive.

[Cut to logo]

[mkral]

It seems like every time apple does something someone doesn't like, the offended person(s) comes out with the "I will never buy another apple product, etc" line. If half the people who made this proclamation went through with their threats, Apple would have folded a long time ago. Apple makes great products. They know we'll be back around for their next 'big thing' Once the anger subsides (and honestly how long will people stay bitter over $200) and Apple comes out with their next revolutionary device, how many of us will really not buy it, just 'to teach apple a lesson'. I won't. It's silly to punish yourself by not getting something that can add some real value to your life. Sure you might not buy it in the first month or two, but anyone who doesn't know that about Apple products is either new to the fold (welcome) or a real diehard who probably enjoys the occasional kick to the nuts by Steve as a sign that (s)he's still on the bleeding edge. There are a lot of people who think that bleeding edge is worth $200. Glad that Steve got that money & I hope he uses it to make the iphone even better (or create the next new thing).

[Podolsky]

AT$T just reimbursed me! by reducing my next bill $200 for the iPhone I bought last week. The OTHER iPhone I bought last month is a bit more complicated. I told them that if they will bill me back for that one too, I will buy a third phone. I think they are going to go for it - I'll let you know.

I was only mildly pist off cause I bought 2 of them. But they are such awesome devices that I was just glad to have them. While Apple has pissed off some of their important early adopters, there are FAR MORE people out there who are happy happy happy with lower price point. So it goes.

[dpicardi]

I think this price drop makes it even easier for people who were originally waiting for the iPhone to have 3G to wait longer - and possibly get one for a lower price. (Though I think the $399 new price opens up the door for a 16 or 32GB iPhone at $499-599.

It just shows that Apple is trying to get as much as possible out of their first iphone release. I think without question we'll see a 3G iPhone by Macworld...if not the Xmas holidays (doing so would be a huge bump to Apple's holiday revenues.)

I will be shocked if Apple doesn't give some kind of rebate. The iTunes credit would be easy for them and their balance sheet.

[icruise]

Originally Posted by dpicardi 

I will be shocked if Apple doesn't give some kind of rebate. The iTunes credit would be easy for them and their balance sheet.

Prepare to be shocked. Although I did actually write to Steve Jobs to suggest the same thing (iTunes gift certificates for early buyers just as a "thank-you" for their support.) Whatever it costs them (which is probably not a whole lot) would be easily outweighed by the goodwill it would engender.

[Turias]

I think Apple did the right thing.

They initially priced it at the perfect point to meet demand. Even though they sold out within the first two days, a week later you could already find them in stores. People were buying them at a good rate, but you didn't have to wake up at 5AM every morning to wait in line for one (see the Wii). They were making a good profit so that they could afford to spend money to figure out how to make more phones at a faster pace.

Then, it got to the point where the people who wanted an iPhone had one. They had ramped up production enough that they were no longer worried about shortages, so they dropped the price. Not only that, but since they are using so much of the same hardware in the new iPods, they are able to reduce the price even more since they can bulk purchase the components.

To those of you who already bought an iPhone: congratulations. You have the best phone on the market and you got to use it for two months longer than the rest of us. To you, it must have been worth the original price or you would not have purchased it. Instead of being upset, try to be happy. Apple is going to sell a crap-ton of these things, which means faster updates, even cheaper phones, and better software. This is a good thing for Apple.

Me, I'm holding out for 16GB/3G/GPS. I just hope I don't have to wait too long.

[icruise]

From a New York Times Article:

But it was the iPhone price cut that got the most attention, raising questions about the device’s continued success.

Apple executives insisted that the move had been planned long ago and that the pricing strategy was conceived in part to keep the iPhone’s pricing in line with its new iPod Touch. But the sharp price cut suggested that even Apple, which has long lived in a pricing bubble insulated from other personal computer makers, is not immune from the brutal pressures of the cellular phone business.

“My suspicion is that they got to 750,000 really quickly, and then it started to slow down,” said Van Baker, an industry analyst at Gartner Group.

So as I said, there are basically two possibilities. Either Apple planned this from the beginning (which is rather disturbing to me) or they cut the price to stimulate sales. I think it may actually be a combination of both. It seems likely that they had a price cut in mind to go with the iPod touch announcement, but my guess is they were thinking more along the lines of $100. Then when sales weren't as good as they had hoped, they bumped it to $200.

[nikhsub1]

Originally Posted by Turias 

I think Apple did the right thing.

They initially priced it at the perfect point to meet demand.

No you're delusional. They priced it to a point where they felt the raping would be somewhat justified. Oh wait, rape never is justified.

[Dakarʒ]

In Apple's defense, we were dressed like we wanted it to happen.

[icruise]

Anybody remember this? (From the day after the iPhone's introduction)

Apple: No plans to drop iPhone price - FierceBroadbandWireless - Broadband wireless news, WiFi news, muni WiFi

Apple has indicated that it has no plans to drop the price of its iPhone any time soon. Good, because that would make a lot of consumers who just shelled out $500 and $600 quite angry. During Apple's third-quarter fiscal results conference call with analysts, the main subject of discussion was whether Apple planned to expand the product line and offer models substantially less expensive. Apple stayed mum, but defended the current prices.

[Big Mac]

Nice find, icruise. Honestly, if I had rushed out to get an iPhone, like so many MacNNers apparently did, I would be angry too. But I didn't, so I'm not. Go figure.

[dpicardi]

Originally Posted by icruise 

Prepare to be shocked. Although I did actually write to Steve Jobs to suggest the same thing (iTunes gift certificates for early buyers just as a "thank-you" for their support.) Whatever it costs them (which is probably not a whole lot) would be easily outweighed by the goodwill it would engender.

You are probably right. But I hope not.

It was even easier for them to given the $200 credit to Aperture owners as they owned the IP. An iTunes credit would be more "painful." But free Mac OS 10.5 and free Apple Care on your iPhone plus a gift certificate to the store I would think could be a no-brainer.

But again most of the people that bought iPhones were Apple's biggest evangelists. I know in the last 3 years I've converted more than 10 people to the mac resulting in at least $30000 of revenue for Apple (not to mention the serious personal outlay I've made plus all the converts they made). And I'm sure there are a lot of you out there that have done far more for Apple.

If ever there was a target audience for Apple worth keeping happy it's this one.

[lpkmckenna]

All this complaining is pointless. Remember the $200 markup on the original black MacBook? Jeez, a lot of hot air is being blown around over nothing.

[Visnaut]

You can't just give away $200 rebates for hardware like you can for software.

Software pricing is not a completely tangible cost, aside from developers' and managers' time, amortized over the time of development and subsequent release. The pricing can be set to an arbitrary amount to both cover the cost of initial development, and desired profitability, over a desired period of time. Supply and demand is not really a factor, and hence why Apple was able to give away a beefy rebate to initial Aperture users.

Hardware sales are completely different, and I doubt I have to explain to you all how and why it is more expensive to build a device at the time it is released as opposed to several months after.

Sure, Apple beefed up their margins on the iPhone to a higher-than-normal degree. But you forum goers of all people knew that, and you still bought those things up. And don't forget that Apple had to pay for a bunch of man-hours spent on R&D, its not just the hardware you're paying for.

Now they're a few months into production, they've further simplified the line by having only a single model, (so no need to keep two separate and expensive production/packaging lines), which has made things cheaper. Add the iPod touch into the mix, likely functioning on extremely similar hardware components which they purchase in bulk, and not only can they afford to cut the price of the iPhone, but still probably make killer margins on it.

[nikhsub1]

OK then, free leopard for all who bought an iPhone and paid full price.

[mutelight]

It definitely hurts that it happened so incredibly soon and I wish I could have and extra $200 in my pocket but I feel complaining about it is like polishing the brass on the Titanic.

[k2director]

Hell, yea!

Apple - To all iPhone customers

Now this is what I'm talking about, Apple! Having the company directly and honestly address the issue in an open letter, AND offering a $100 coupon is a fair compromise in my mind.

Consider me highly satisfied...

[Enigmaaron]

If you are complaining about the price drop and have not called Apple or AT&T yet put down the keyboard and call them.

There are numerous reports of people getting refunds from Apple and AT&T, even if you bought it more than 14 days ago. Call them and be nice. If you don't get a refund than proceed with your bitch fest.

[Nodnarb]

Originally Posted by k2director 

Hell, yea!

Apple - To all iPhone customers

Now this is what I'm talking about, Apple! Having the company directly and honestly address the issue in an open letter, AND offering a $100 coupon is a fair compromise in my mind.

Consider me highly satisfied...

Yes!!!


Me as well...

[icruise]

Originally Posted by k2director 

Hell, yea!

Apple - To all iPhone customers

Now this is what I'm talking about, Apple! Having the company directly and honestly address the issue in an open letter, AND offering a $100 coupon is a fair compromise in my mind.

Consider me highly satisfied...

Wow! Maybe my email had an effect.

[rubaiyat]

Originally Posted by k2director 

… I think a lot of iPhone faithful will feel ripped off, and feel like fools.

To the extent that they swallowed all the hype and felt compelled to buy for the sake of fulfuilling some primal consumer need, yes they are.

But think back, by being one of the early purchasers, for a brief moment in time you finally were "someone" and probably attractive girls would actually talk to you. Wasn't that worth $200?

Now you can go back to your normal state of being ignored with the added bonus of being looked upon as an object of pity.

[::maroma::]

Originally Posted by k2director 

Hell, yea!

Apple - To all iPhone customers

Now this is what I'm talking about, Apple! Having the company directly and honestly address the issue in an open letter, AND offering a $100 coupon is a fair compromise in my mind.

Consider me highly satisfied...

OK, now this is why I'm glad to be an Apple fanboy. I was surely upset by the news of the price drop, and the fact that Apple didn't address the obvious backlash from the start. Personally, I wasn't mad about the cash, I was just annoyed by how they handled it.

But the fact that Jobs himself listened to his customer base and made the right decision on this matter shows me that I'm a fanboy for the right company. I can now recommend all Apple products (Revision A or Z) to anyone knowing that if Apple decides to do something like this, they will treat their customers right, as they now have with Aperture and the iPhone situations.

I also agreed with everything Jobs said in his letter. I completely agree that the price drop is needed for the iPhone to be successful, especially for the holiday season. I agree that the technology road is a bumpy one, and sometimes you have to take the bumps and move on. But in this particular instance, Apple made the right move by telling its core base, as well as everyone else out there, that they pay attention to customers and react.

[otep1760]

you can get the 4gb iPhone on at&t's website for $299 now, i wonder how long that will last until the 4gb's are sold out.

[Drakino]

Originally Posted by icruise 

Anybody remember this? (From the day after the iPhone's introduction)

Apple: No plans to drop iPhone price - FierceBroadbandWireless - Broadband wireless news, WiFi news, muni WiFi

To be fair, it's rare for a company to preannounce a price drop. Sony was saying "we have nothing to announce today" when people were asking about a PS3 price drop, right up until the day before it happened. Microsoft did a similar move, with Moore saying similar in interviews at E3, and a few weeks later the XBox 360 is cheeper.



In regards to the letter from Jobs today on the site, I'm glad they responded, but would have preferred something less reactionary to the bad press about the price cut. This is damage control, and not something I feel they would have done on their own. Also somewhat disappointed it is only $100 instead of $200, unlike the Aperture credit that was the full amount of the drop. Still though, better then a swift kick to the nuts

[Nodnarb]

Originally Posted by Drakino 

Also somewhat disappointed it is only $100 instead of $200, unlike the Aperture credit that was the full amount of the drop. Still though, better then a swift kick to the nuts

Same here. It's better than nothing, because they could have easily have said "too bad." But they could also just as easily have said "here's your $200!"

[icruise]

I agree that it reeks of damage control, but I think $100 is more than fair. If the price cut had only been $100 to start with, I wouldn't have been nearly as upset as I was. It's too much to ask that they give everyone a full refund of the difference. We did get to have the phone early, after all, and I doubt the stockholders would appreciate a move like that either. This seems like a fine compromise.

[Nodnarb]

No no, I know it's good, and a fair compromise. But you know there's a voice in the back of your head saying "what happened to my other $100?"

But I'm not complaining. I'm very happy with their decision on this.

[atc ben]

Originally Posted by k2director 

Hell, yea!

Apple - To all iPhone customers

Now this is what I'm talking about, Apple! Having the company directly and honestly address the issue in an open letter, AND offering a $100 coupon is a fair compromise in my mind.

Consider me highly satisfied...

Holy crap!

I totally have my warm fuzzy feeling about Apple again. I bought an 8GB and a 4GB so I assume I get $200 in store credit. Leopard and a discounted iPod Classic here I come!!!

THANK YOU STEVE!

[mduell]

$200 buys about 24GB flash ($7.50/GB wholesale).... do I smell a $600 32GB iPhone coming?

[pyrite]

Originally Posted by pyrite 

...maybe they could offer store credit for the difference, or something similar...

damn i'm good

[pyrite]

Originally Posted by mduell 

$200 buys about 24GB flash ($7.50/GB wholesale).... do I smell a $600 32GB iPhone coming?

more likely a 16GB iPhone with 3G IMO

[k2director]

I'd be happy with a To Do app!

[Cold Warrior]

Just think of it this way -- they discontinued the 8 GB model, reduced the 4 GB by $100, and then upgraded it to 8 GB for free!

[vertigociel]

Originally Posted by nikhsub1 

OK then, free leopard for all who bought an iPhone and paid full price.

Except that not all iPhone owners are also Mac owners. Why would they want another coaster?