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iPhone Price Drops $200 after only 2 Months
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Senior User
Join Date: Sep 2002
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I dutifully lined up on June 29 and put down my $599 for an 8 gig iPhone. Now, only 2 months and a couple of days later, Apple drops the price by $200?
Either Apple is panicking over slowing iPhone sales, OR Apple really really gouged its early customers.
I'm never one to complain about price drops on technology products, but this is a bit much. $200 after only 2 months? Personally, I think a lot of iPhone faithful will feel ripped off, and feel like fools.
Apple would be smart to offer its first customers who paid $599 some kind of bonus/reward for their early support, to keep them happy.
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They might offer such a thing, but then again. They are in business to make money.
I know many things said at keynote speeches are true for the most part, but he was quoted saying the iPhone is doing fantastic and they are about to hit the 1 million mark this month on sold. (Unknown about activated.)
I think this drop in price was just a push for them to get all the teetering people to make a choice and pull them in, since the cell phone market is basically a 6-8 month market, and then the next big thing comes out Apple needs to find a way to hold onto there people for as long as possible. Now I am not saying people upgrade every 6-8 months, but something new many times comes out and over shadows X product.
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I fully expected a price cut to come sometime, but this is just ridiculous. I really do feel like I've been taken advantage of. In all the time I've been buying Apple hardware (and computers/electronics in general) I've never felt like a bigger chump. Way to punish early adopters, Apple.
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Wow. Niiiiiiiice kick in the nuts.
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New, Improved and Legal in 50 States
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Senior User
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Hey Apple,
Why should I buy any high-priced premium new product from you again, knowing that you may cut the price by 33% after only two months on the market?
Thanks for teaching me to hold back my dollars, to avoid getting gouged. Sounds like a winning formula for your next big product launch...
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Mac Elite
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I feel like Apple just punched me in the face. This is insane.
$200 for helping them??? All us "fanboys" got screwed over for buying Apple's new phone on launch day when everyone else was saying "nooo to expensive." Now that they got our $600, they lower it to $400 for everyone else?
I really, truely hope that they offer SOME kind of rebate-ish thing for anyone in our position, as they have really ****ed us over on this one. Thanks Apple.
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Clinically Insane
Join Date: Jun 2000
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The street doesn't like it either. Stock dropped 5.86
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Originally Posted by starman
The street doesn't like it either. Stock dropped 5.86
I was just checking that, since I figured this might be a financial move to motivate there stock, but it is going in the completely wrong direction. Then again, maybe in a month they will be to new record highs and such with massive sales on iPhone, new iPods, etc.
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Damn! $200 price drop on my 8GB iPhone. I'll go cry now.
Come on Apple. Give us a $200 iTunes card, so I can buy some tunes to cry over the price drop.
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Bush Tax Cuts == Job Killer
June 2001: 132,047,000 employed
June 2003: 129,839,000 employed
2.21 million jobs were LOST after 2 years of Bush Tax Cuts.
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Is anyone gonna call or email Apple about this?
I seem to remember that a similar thing happened when they released Aperture, and then either gave the early adopters a rebate or iTunes card or something like that. Is there anyway to have that happen???
I know that I shouldn't be this mad about it, but I literally saved since January until June 29th, and spent a good majority of my money on that phone, and now it's over 30% cheaper??? It's ridiculous.
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Go check the fine print in your credit card agreement. Many cards offer a price protection guarantee, especially if you have a nifty Gold or Platinum card.
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Clinically Insane
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Stock dropping more. 6 points now.
Apple, here's a clue: don't piss off the people that just bought a phone you hyped to no end.
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Originally Posted by Dork.
Go check the fine print in your credit card agreement. Many cards offer a price protection guarantee, especially if you have a nifty Gold or Platinum card.
For a product price drop 2 months afterwards? You think the credit card companies would refund it? How does that work?
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Clinically Insane
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I think Apple did this intentionally. Isn't it like 65 days?
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This is simply bad business practice. Apple is shooting from the hip and just not thinking it through. Yes, great there's been a price drop so all those people who couldn't afford the intitial hefty price tag now might be able to stretch but if I'd slapped out the full amount 2 months ago, I'd feel VERY pissed off.
Bad Apple.Naughty Apple. At the very least, offer those poor suckers who shelled out the full amount just 8 weeks ago some sort of compensation.
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Some credit card's have 30 day or 60 day price protection guarantee. Probably doesn't include computers and related products.
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Bush Tax Cuts == Job Killer
June 2001: 132,047,000 employed
June 2003: 129,839,000 employed
2.21 million jobs were LOST after 2 years of Bush Tax Cuts.
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Yea, I think there's a very good chance that Apple will do something for its early customers. I'm starting by calling some of my PR contacts at Apple, and letting them know how this move is being received by a lot of original iPhone buyers. If I were you, I would contact the manager at the Apple Store where you bought your phone, or call Applecare.
Word does trickle down (or up) to the powers that be.
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Originally Posted by Nodnarb
For a product price drop 2 months afterwards? You think the credit card companies would refund it? How does that work?
Go read the fine print, it's one of the "perks" they offer for owing them money.... um.... being a loyal customer. If you can prove that the price of a big-ticket item has gone down within a certain timeframe, they'll credit you the difference. They do this to encourage you to buy NOW!!!! (and besides, very few people take them up on it).
60 days is probably pushing it, 15 or 30 days is probably more like it. But only your credit card agreement knows for sure.
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Am I the only one that doesn't really care about the price drop? I bought at $599 a week after the release, and I still feel it was worthwhile.
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All glory to the hypnotoad.
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Apple did this to tempt me personally. I used one a week ago and have been craving it like a junkie. Now the price cut!
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I just called to return my iPhone.
I don't do business with companies that have this kind of business ethics. Period.
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That's the price of technology, you pay the premium to be the first on the bandwagon.
I've never thought of it as a bad business practice to lower the price on the products you sell(as long as you still make a profit)
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Yes, it was worthwhile at $599. But have you ever seen another product drop 33% after being available for only 2 months? Ever? I haven't. Even the PS3 was out for over a year before they dropped the price. Even then, it was $100 drop, not a $200 (33%) drop. Apple really screwed their early adopters on this one.
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Originally Posted by jokell82
Am I the only one that doesn't really care about the price drop? I bought at $599 a week after the release, and I still feel it was worthwhile.
I am happy, but I do understand those who are upset.
Now say they were to drop the price in January or early December for the holidays it would be a "better" time (or timing). Yet after two months of operation and already showing a price drop does not hold well for either side. Consumers get upset, share holders freak because of a price drop so early means problems, the company does not say why usually so speculation becomes the only answer.
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Yeah, you guys basically have the coolest phone ever made in your
hands so deal!
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Professional Poster
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Originally Posted by theDreamer
I am happy, but I do understand those who are upset.
Now say they were to drop the price in January or early December for the holidays it would be a "better" time (or timing). Yet after two months of operation and already showing a price drop does not hold well for either side. Consumers get upset, share holders freak because of a price drop so early means problems, the company does not say why usually so speculation becomes the only answer.
I'm not *happy* - but it's not bothering me either. Everyone seems to be acting like it's the worst thing ever, though...
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All glory to the hypnotoad.
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Yeah, I'll never buy another Apple product in the first 3 - 4 months of it's release regardless of any kind of bonus/reward for us early iPhone adopters. This is completely absurd. People laughed at me for spending so much on a phone but I defended it. I even converted a few and sold them on the iPhone. I can hear those same people now, and Apple has made them right. I'm a chump. It's a $200 slap in the face is what it is.
I had two Black 160GB iPod Classics in my Apple Store shopping cart and was ready to check out until I saw that price drop on the iPhone. Now, I think I'll wait until after the holidays.
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Originally Posted by nstehle
I just called to return my iPhone.
I don't do business with companies that have this kind of business ethics. Period.
Really?
Have you ever bought a car before??
Do you know that you and I could both go to the same exact car dealership on the same exact day - and buy the same exact car - and one or the other of us could probably spend about $2,000 less?
As technology advances, prices drop. That is just the way of things. My original Apple //c was over $3,000 when my parents bought the computer, the monitor, the printer, etc. Today it's worth about $10.
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Originally Posted by buffswin
Have you ever bought a car before??
Do you know that you and I could both go to the same exact car dealership on the same exact day - and buy the same exact car - and one or the other of us could probably spend about $2,000 less?
And this is relevant how? We can't negotiate the prices we pay for our iPhones.
Originally Posted by buffswin
As technology advances, prices drop. That is just the way of things. My original Apple //c was over $3,000 when my parents bought the computer, the monitor, the printer, etc. Today it's worth about $10.
How many months ago was that? Two? Three? Two hundred-forty?
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So yesterday it was worth $599 to you, but today you think you got screwed? Give me a break.
I lined up and paid the $599 on day one. I loved it then, love it now. The best money I have ever spent on a technology product.
I'm glad they are lowering the price for xmas so that more people can get it. More market share means more attention to the product by Apple, means more updates for me.
Bravo Apple!
[Wanna bet there's a 3G version coming at $499?]
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Originally Posted by Enigmatic
That's the price of technology, you pay the premium to be the first on the bandwagon.
I've never thought of it as a bad business practice to lower the price on the products you sell(as long as you still make a profit)
yeah, but not TWO freaking MONTHS, that a BIG slap in the face.
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Originally Posted by buffswin
Really?
Have you ever bought a car before??
Do you know that you and I could both go to the same exact car dealership on the same exact day - and buy the same exact car - and one or the other of us could probably spend about $2,000 less?
As technology advances, prices drop. That is just the way of things. My original Apple //c was over $3,000 when my parents bought the computer, the monitor, the printer, etc. Today it's worth about $10.
I think you need some better analogies. This is an Apple product, not a car. People hate shopping for cars for the same reasons you point out, and Apple has gone out of its way to make sure that its products are generally priced at the same level across all of its retailers.
Secondly, we all know that tech drops in price, but this is a flagship premium product--arguably Apple's most important and most visible launch in years--and its price has just been slashed by 33% after only 2 months on the market. It's unprecedented. It's not following the normal laws of depreciation in the tech world (by far), and that's why people are upset. It makes early adopters feel like they were gouged and taken advantage of, in return for helping establish the iPhone as a success.
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Originally Posted by starman
The street doesn't like it either. Stock dropped 5.86
I bet this would have happened regardless of what they had to announce.. A lot of investors were following the old "buy on rumors, sell on news", as it's risen nearly $20 for the past four days.
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Originally Posted by k2director
I think you need some better analogies. This is an Apple product, not a car. People hate shopping for cars for the same reasons you point out, and Apple has gone out of its way to make sure that its products are generally priced at the same level across all of its retailers.
Secondly, we all know that tech drops in price, but this is a flagship premium product--arguably Apple's most important and most visible launch in years--and its price has just been slashed by 33% after only 2 months on the market. It's unprecedented. It's not following the normal laws of depreciation in the tech world (by far), and that's why people are upset. It makes early adopters feel like they were gouged and taken advantage of, in return for helping establish the iPhone as a success.
Well said.
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We really have to think about the reasons for this drop. The reason the stock market is reacting badly is that it looks almost like a move of desperation. Companies simply don't reduce a product's price by 1/3 if it's doing fine.
It seems unlikely that they had this move in mind from the beginning. Maybe a smaller (~$50-$100) drop toward the end of the year, or to coincide with the release of the iPod Touch. You can't have something with twice the memory and most of the features selling for $300 less than the iPhone. But even so, a $200 drop in a matter of weeks? I can't remember that happening with any product I've bought EVER. I think it's pretty clear that the iPhone (while selling a respectable amount) was not performing up to Apple's expectations. And the galling thing is that if they can drop the price by so much now, they could have sold it for this price from the beginning. Imagine the reaction the iPhone would have gotten if it had debuted at this price.
I still love my iPhone, but I really think that Apple needs to recognize that it was a big deal for a lot of us to plunk down $599 for a cell phone, and that we've been defending that decision to our friends and family (and complete strangers) ever since. Now we look like chumps. Just give us an iTunes gift certificate or something to show that we're appreciated.
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come everyone, you didn't expect a serious price drop? either in the form of the price or a subsidy from att?!?! every phone you buy gets a discount if you subscribe or re-up... except the iphone! it was inevitable that they would have to maintain sales after the fanboys bought, and to do that you compete with all the other phones on the market. i wanted one, but was going to be damned if i had to switch to att only to buy a full price phone.... and at $600!!!
now they are pricing it inline with everyone else, however, i am still uncertain as to why one needs a 2 yr agreement with att.... under the current scenario, it works better to sign up with att for no term, buy an iphone and add it to your account. anyone know if that works?
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Originally Posted by icruise
Imagine the reaction the iPhone would have gotten if it had debuted at this price.
Isn't the iPhone one of the best debuting phones of all time? It's obvious their starting price point didn't hurt them. The buzz was unbelievable.
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And I do mean one pissed off chumpazoid. I have been a faithful machead since the early 90's. did i expect a price drop? yes. did i expect a $200 price drop? F no. Maybe just maybe i sell my iphone for a $300 loss and go get a new blackberry. Money is money but damnnnnnnnnnnnnnnnn.
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Originally Posted by DakarĘ’
Isn't the iPhone one of the best debuting phones of all time? It's obvious their starting price point didn't hurt them. The buzz was unbelievable.
Of course the buzz was unbelievable, but that apparently didn't translate to as many sales as expected. Remember the disappointing initial sales numbers? Yeah, sales were good compared to other smart phones, but that's not really the metric we should be using. I'm positive Apple expected more.
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Originally Posted by icruise
Of course the buzz was unbelievable, but that apparently didn't translate to as many sales as expected. Remember the disappointing initial sales numbers? Yeah, sales were good compared to other smart phones, but that's not really the metric we should be using. I'm positive Apple expected more.
I thought that was all spinned BS having to deal with activations and the fact that it was the end of the month the first day.
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Originally Posted by DakarĘ’
Isn't the iPhone one of the best debuting phones of all time? It's obvious their starting price point didn't hurt them. The buzz was unbelievable.
Indeed. It's also selling we relative to the closest competitors: so-called "smartphones;" also outsold LG's chocolate; and Jobs' said it's on track to meet the year's sales goal.
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Originally Posted by DakarĘ’
I thought that was all spinned BS having to deal with activations and the fact that it was the end of the month the first day.
Yes. ATT had sh*t numbers -- nearly 50% less than what Apple reported not long after.
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Man, this sucks. Add me to the list of people who feel kicked in the nuts by Apple. Here's to hoping we'll get some sort of iTunes credit!
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I wasn't referring just to the AT&T activation numbers. Apple went a long time without releasing any kind of sales numbers, and never came out with the kind of triumphant "look how many we sold" press release that they love so much. I'm not saying the iPhone was doing badly, but I know it was doing worse than they had hoped. If you disagree, what is your explanation for this price drop?
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Professional Poster
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Originally Posted by icruise
I wasn't referring just to the AT&T activation numbers. Apple went a long time without releasing any kind of sales numbers, and never came out with the kind of triumphant "look how many we sold" press release that they love so much. I'm not saying the iPhone was doing badly, but I know it was doing worse than they had hoped. If you disagree, what is your explanation for this price drop?
Oh that's easy. The price would look horrible in comparison to the iPod Touch.
Edit: iCruise, I thought the price worked well enough for launch and I wouldn't be surprised if there was a huge drop-off in sales after sales to hard-core users hit saturation, but even a $100 price drop for the holidays would seem like enough to keep the phones moving. (IMO)
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As someone who was almost an early adopter, I can say the price drop has breathed new life into my interest in the iphone.
Two things kept me from getting the iphone the first week or two it came out: 1) It was not easy to buy. I won't stand in line more than 10 minutes to buy almost anything. I certainly won't show up to a store before dawn and wait in line for hours to maybe get something. 2) I found the price point hard to rectify with the utility the device would provide me. All that sad, I was green with envy when I played with my friends and coworkers.
After the novelty wore off, though, my enthusiasm for the iphone tanked. The people I knew who had one began to complain about minor issues. Also, my office decided not to support the iphone with the work e-mail. If I was having trouble balancing the price against the value and utility initially, the scales were leaning even further against the iphone. With the price drop the scale has rebalanced. Since my current cell phone is on the fritz, I am seriously considering the iphone again. Clearly, Apple price did work with some consumers, I being one.
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Maybe the cut was a contingency based not on bad sales but good numbers: Apple prices high for the first couple of months in the event the phone is a flop. No matter what, it's bound to get the introduction bounce, but it was hedging its bets against a steep drop-off or negative reaction. Assuming that hasn't happened, the $600 price and currents sales rate have given Apple enough confidence that the iPhone isn't a flop, is well-received, and can be priced at $400 to move even more.
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Originally Posted by jokell82
Am I the only one that doesn't really care about the price drop? I bought at $599 a week after the release, and I still feel it was worthwhile.
I'm with you. The phone was worth it for me, but I am glad they've reduced the price because so many people were asking for that. Now more people can enjoy this awesome phone!
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The only thing holding me back from getting an iPhone now is losing in network calling on Verizon.
Although I will be constantly mumbling about no 3rd party apps...
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8 Core 2.8 ghz Mac Pro/GF8800/2 23" Cinema Displays, 3.06 ghz Macbook Pro
Once you wanted revolution, now you're the institution, how's it feel to be the man?
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Junior Member
Join Date: Feb 2006
Location: Ormond Beach, Fl.
Status:
Offline
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I just shared my iPhone story on Apple's website here...
Apple - iPhone - Share your iPhone Story
My story goes like this:
My favorite story about using my iPhone was when I opened up Safari on it today to have a look at the new iPods, and saw that the $600 device I bought a month ago is now $200 cheaper after being out for a little over two months. After being laughed at for buying such an expensive phone, defending the product, and even selling some of those people on the iPhone, you've managed to make them all right. I'm a chump. Thanks a lot Apple!
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-Ben- 15" Macbook Pro 2.33, 2GB RAM, 160HD, Matte
My
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