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Summary:

If you haven’t heard already, at yesterdays event Steve Jobs announced that on top of dropping the 4GB iPhone, the price of the 8GB iPhone would be dropped by $200 to $399 (from $599…for the mathematically challenged). The iPhone was released barely 2 months ago and […]

If you haven’t heard already, at yesterdays event Steve Jobs announced that on top of dropping the 4GB iPhone, the price of the 8GB iPhone would be dropped by $200 to $399 (from $599…for the mathematically challenged).

The iPhone was released barely 2 months ago and thus a few users (especially those who dropped $600 on a phone) are a bit ticked.

A few points have been made in regards to negativity towards the price drop.

I think Gruber summed it up best:

…for those of you who’ve already bought one and are pissed about the price cut, if you didn’t think the iPhone was worth $599, you shouldn’t have bought it. That’s how supply and demand works.

I certainly understand both sides here. I know if I had purchased an iPhone and paid the equivalent of a new computer, I’d be ticked too. Being upset over spending $200 more than what you’d have to pay now is reason to be upset. But you’ve got to take things in to focus here.

Jobs is being completely honest when he says “that’s what happens in technology.” In a technology age dominated by short product life spans and competitive markets, Apple is doing what they have to to stay competitive in a volatile market like the mobile phone industry.

As Gruber said, if you didn’t think the iPhone was worth $599, you shouldn’t have paid that much for it. It’s not about customer loyalty or respect. It’s not about you some how thinking your iPhone was any type of “investment” that wouldn’t drop like a rock in value. It’s about business and supply and demand. Period.

  1. And if that is all it was, it’d be fine. But it’s not. There are two key points here that are what are pissing people off:
    Time of discount
    and scale of discount

    Being in union. Tech does drop. But it doesn’t go that fast. If they shaved off $50 bucks, I’d not care, but they didn’t – they took off the price of a new ipod after 2-3 months.

    As someone who has had two replacements in that time period, with no accidental insurance coverage (and one was defective) and I had to pay for one of those replacements….

    I’m pissed. Because it was slimey. Is it within their purvue to do it? Were they within their rights? Sure. So are most the actions we all despise by Microsoft, or DRM using companies, or hardware manufacturers who sell crap products like Dell.

    Can they do it? Did we tacitly agree to it? Yes. But it’s also slimey, and not the sort of thing I’d expect from Apple and you can be damn sure I won’t be rushing out and buying the next great thing they do anytime soon. And I’ve no doubt many others will follow suite.

  2. Come on guys if you want the be the first to buy something you are going to pay a premium. Apple users tend to forget from time to time, that ultimately apple is a buisness first and foremost. I just feel lucky that i sold my 8 gig iphone on Tuesday filled with music for 550.00 on craigslist.

    1. Right on D’…. where you at? hit me back with some knowledge…

  3. Also.. I’m not sure where that “being in union” text came from in my comment… that’s kind of weird. Don’t think I ever typed that or anything like it.

  4. If Apple just want to be a strictly business without loyal customers, so be it. There were many situations we didn’t need to buy Apple products but we did anyway.

    So if Apple is just like another microsoft, why we don’t just choose microsoft or any other company if they have mainstream products and more features.

  5. Personally, I think it’s the benefit of having a successful device. We’re seeing the same thing that happened with the iPod – just at a much, much faster pace. Folks forget that 3-4 years ago we where paying over $400 for an mp3 player.

    But it all comes down to whether or not you got “screwed” in this deal. Since I didn’t, I’m pretty happy about the fact that I can now snag one of these puppies without forking over my first born (sorry early adopters).

  6. We all know caveat emptor but you all mean to tell me that you don’t think that Apple should take more care with their customers. It is a rather large early adopter penalty to pay. Not to mention I doubt that this was a last minute price change. Rather I’m almost positive this was Apple’s strategy from the start. We all know technology prices go down over time but this is certainly an extreme. I think it definitely gives Apple a black eye and I certainly view them differently than I did last week. I think its safe to say that Apple has no regard for its customers and I can lump them in with Microsoft. It is a free and open market so let your dollar vote. I know I will and Apple will not see the same revenue stream from me as it previously has. BTW, I bought my iPhone 17 days ago and I was able to get a $200 refund today at the Apple store. You can also call up AT&T and threaten to cancel your contract if its been within 30 days. You probably don’t want to but at least it will send the message. Corporations can play there games but so can consumers. We are not without options and nothing speaks louder than the dollar.

  7. I’m completely with you (and Gruber) on this one, Josh. My contract with Verizon just expired two weeks ago, but did I switch to an iPhone? No. I didn’t think it was worth $600. And while it may be worth $400, I’m not ready to pay $400 for it.

    In reply to hchen, why don’t you? The answer (at least for me) is that Apple still has superior products. OS X is far superior to any version of Windows. I just dumped Office 2004 for the new iWork ’08 — and I’m a writer so I have to interface with Word users but I’d rather spend the effort converting things on my end than to use Word to “fit in.” iPod versus Zune? No question. I agree with you that Apple may be taking a more Microsoft-like business model, but the fundamental difference is that it’s not at the expense of their products. Mostly. (Still unhappy that Leopard was delayed.)

  8. The products being so damn good is really the problem. I may not be in a rush to spend money, but I’ll almost certainly be buying apple products – what’s the alternative, really?

    There ARE alternatives, but I’d actually like to want to use my products not tolerate using them.

    But customer service, and how you treat your loyal customers is part of it too – Apple slips up, they won’t get any slack because they are Apple and have generally been pretty good to consumers.

  9. I’m with Gruber as well. If you didn’t think it was worth $500+, then you shouldn’t have got it.

    I got a 4GB iPhone 30 days ago.

  10. Supply and demand is not the point.

    Here’s why a lot of people are ticked: Apple doesn’t do this to their customers. Apple traditionally doesn’t punish early adopters.

    The next generation will of course be a better deal – slightly lower price, better specs, etc. – after a year or so, but that’s not quite as painful.

    I jumped in and bought an iPhone for just that reason – I knew that from prior history Apple doesn’t discount products after only 60 days. And they especially don’t discount by 1/3. If they had, a lot of us would have waited.

    Apple is in a bit of unknown territory here – a PR event gone wrong.

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