iPhone Price Cut Backfires On Apple
This is how good news turns bad: Apple announced that its 8GB iPhone lost $200 and would now retail for $399. It remains to be seen how this will work in the long run, but, until then, Apple has to calm down the angry mob of iPhone users that feel cheated because of this sudden price drop.
September 7, 2007
The protest must've taken some proportions and right now Steve Jobs must be crossing his fingers and wishing his response would calm down his critics. “Our early customers trusted us, and we must live up to that trust with our actions in moments like these,” says Jobs in an open letter posted on Apple's site. As it follows, Jobs announced that every iPhone customer would be offered $100 store credit which he may use for the purchase of any product at an Apple Retail Store or the Apple Online Store. Additional details will be made available next week.
However, the letter also includes a wake-up call for existing users:
“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.”
All in all, two things are for certain. First of all, the iPhone must've been running out of early adopters at a very fast rate. After all, the company cut the price of the device by one third and the iPhone has been on the market for two months.
Second, and quite obvious, it not worth being an enthusiastic early adopter, although we might say that in this case it paid up.