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Summary:

A letter from Steve Jobs on Apple’s site not only apologizes to early iPhone adopters, it promises them $100 in credit to the Apple Store in an attempt to make amends. This will hopefully calm the fires that are burning among many of the Apple faithful […]

A letter from Steve Jobs on Apple’s site not only apologizes to early iPhone adopters, it promises them $100 in credit to the Apple Store in an attempt to make amends. This will hopefully calm the fires that are burning among many of the Apple faithful that feel “cheated” by yesterday’s $200 price drop.

Wow. I guess the squeaky wheel really does get the grease.

  1. um, yeah, I’ll take my credit and get a nano AFTER christmas.

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  2. Thanks Steve… that made my day. I was one of the upset ones (though not upset enough to email or call). Still, after buying 2 iPhones at full price, I’ll welcome a $200 credit to the Apple Store with open arms! Time to go shopping!

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  3. Jobs has been rather arrogant on this one. It doesn’t make up for the loss of value I’ve experienced in my current-shipping-version Apple product. He can still suck it.

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  4. Some of you people kill me…acting as if the phone is an investment. It’s a PHONE. For most people, the phone worked properly, they were absolutely happy with it before yesterday, and they had no intentions of selling it anytime soon. Now there’s a loss of value? Please. Give me a break and quit whining.

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  5. $100 today but they were giving the full $200 credit card refunds yesterday. I have 2 co-workers that got their money yesterday. I love the iphone and I purchased an iMac based on the iPhone product. But the store experience sucks, I’ve never been so insulted as when I purchased the iPhone at the store and the final insult tonight, they decided I had already turned in my phone (yes the one in my hand with the original receipt) because their staff is so inept. I was so annoyed and eventually angry enough that I am taking back all $3k worth of stuff I’ve purchased. I will go back to the slow, cumbersome, annoying non-Apple products. And the funny part? I wasn’t concerned at all about getting any refund until the store experience tonight!

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  6. I’m an apple guy, have been since 1994. I still have my 8100/80 wrapped in a blanket. Not sure why I’m still holding on to it, but that’s for my shrink to figure out…

    I’m also an investor and must say Jobs’ recent missteps are mind boggling. The recent media event was a joke. Ring-tones? Starbucks? STARBUCKS? Is this stuff really worthy of mentioning in a conference?

    I watched closely as the price of the stock declined sharply as he opened this much anticipated media event with the addition of ring-tones. That was worth about a 3 point drop. Then he moved to the redesign of the ipods… Something that, in the past, was simply posted on the Apple website and flashed at the Apple Store with those pretty hanging banners. That was another 2 point drop. This great opening was followed by the discontinuation of the 4-gig iPhone only after 10 weeks of its debut. He then lowers the price of the 8-gig $100 below what the 4-gig cost me and others alike. Needless to say, the Apple’s stock price took a nose dive even more and closed near -8 points that day as investors fled. It was the biggest 1 day sell-off since Jan 07.

    I’m curious. When they were sitting around planning this event, did anyone raise their hand and say,

    “…but Mr. Jobs, don’t you think your die hard fans will get a bit upset? How about the kids that spent their hard earned money and waited in line for 10 hours? Perhaps we should wait a couple of months and drop the price as we get closer to Christmas” or

    “…but Mr. Jobs, Apple has never made this kind of move before this quickly. It might hurt Apple’s premium brand” or

    “Mr. Jobs, perhaps we should simply offer the phones at an already competitive price, like $299/$399 so that we can hit the industry hard out of the gates”.

    Perhaps there were objections, but Jobs wouldn’t have it. After all he knows best, just look at what his done for the company. So a day following this event and after thousands of complaints from his customers, he figures he can fix it, lets call an emergency meeting…

    “I’m going to offer…emmmmm… a refund, no… a store credit! Yeah that’s it, $100 (we’ll meet them half way, kinda). That way, they’ll either buy more junk like iPhone cases or, I don’t know. Maybe they’ll spend another $999 and buy an iBook. Don’t worry about the details troops, we’ll wing it. I’ll tell them we’ll post the details on the web sometime next week, stay tuned. And to implement this great idea of mine, I’m going to write an apology letter, post it on the web, and release it right before close of market as my stock price is coming back up from the day lows. That should help things, right?”

    WRONG! After the posting of his letter, Apple dropped another 3 points in a matter of minutes to close even lower than the day before.

    I don’t know where to start. Is this what they taught you in business school? Oh, wait, you didn’t graduate from college. My bad. Well, here’s a few pointers that might help in the future.

    1: There’s no need to over-hype EVERYTHING. If you want your media events to have impact, limit your presentation to 1 item, not 10.

    2: Ring-tones, Starbucks, iPod redesigns and the iPhone price drop should not have been included in your presentation. The iPod touch would have been enough, that’s what everyone was waiting for anyway.

    3: Try to start your presentations with a BANG, know what I mean? I had lost interest by the time you got to the different new colors of the shuffle.

    4: If you are really concerned about keeping your core customer base happy, why not give them a refund instead of store credit. Or replace the now discontinued 4-gig for an 8-gig as it clearly should have never even been in your iPhone lineup. I sent a text to my sister who is not a techie but owns an 8-gig iPhone (her first Apple purchase) about the rebate and she wrote back, “I already called them yesterday, upset. They said come in for a store credit, BIG DEAL. Thanks anyway”. I’m sure most feel the same out there Steve.

    5: You worked 2 years for iPhone users to be able to see the name of the song that’s playing at Starbucks? Really? I think we are all underwhelmed here.

    I can go on here. Like apologizing to the world. I think that shows weakness. You should have just instructed your stores to “do whatever it takes to keep the complaining customers happy”. Rumors would have gone around fast enough about the refund thingie and you wouldn’t have made all your shareholders and analysts nervous.

    Furthermore, it seems like your price drop was not well planned, but a last minute thing you decided to throw in the mix. The street has the right to question your motives here. If you wanted to go full force ahead, did you not think of that 3 months ago before you launched the iPhone? Is the price drop because of the lack of iPhone sales, that would surely make a bit more sense.

    I’ll close with this. My complaints here are purely as an investor’s point of view. As a consumer, I could care less about how you decide to launch and market your products. As long as they continue to give me goose bumps every time I use them. I have owned many Macs, G4, G5 and the new dual-quad. I also have about 5 different ipods in my family between myself and my kids. Your product and software design is second to none and should be part of everyones life, including their cars, home appliances and such. However, as an investor your recent moves should have been thought out more thoroughly. I’m not sure how this will play out in the near future, although my instincts tells my your stock price is going to tank. You have an obligation to your shareholders as well as your customers and should be more cautious as to how it effects their bottom lines.

    Yours truly,
    Edwin Janaslani.

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  7. I still theorize that Apple never *really* intended to sell this thing at $599. That was just a high-ball price they announced in January. Goal: get everyone comfortable with the big price tag. Then a week before launch, announce a price cut to $399 and watch the buying frenzy explode.

    Except…there was a buying frenzy at *$599*. Apple realized this would happen just before release and decided to stick with the $599 price to give a higher perception of value.

    Then *boom*, a couple of months later drop the price to your original target. Now everyone thinks they’re getting a killer deal (“Wow, the iPhone is *only* $399 now! I gotta grab one!) and sales skyrocket again.

    But…what about all the loyal customers you ticked off with the early price cut? Simple. Give them a store credit after a day of public customer rage. Apple’s company image goes through the roof (“Wow, Apple really *does* love me!”) while at the same time those early adopters are now committed to a $100 purchase at the Apple Store.

    Brilliant.

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  8. @Edwin: I see your points, but I think you’ve picked the wrong event to complain about. My personal choice would be the “It’s showtime” event. Or maybe the unveiling of the new iMac. Don’t get me wrong, I love it – but was it worthy of it’s own event? No. It got it’s own event because the mac desperately needed some love.

    Refreshing the entire iPod line is event worthy. Ringtones are event worthy, because that’s been a gripe I’ve been hearing about the iPhone since it came out.And yes, the Starbucks thing is cool – because it hints at something MUCH bigger, a way to purchase content that (to my knowledge) has never been done before.

    Frankly I think this was a great event, with great new products and services. I think if people hadn’t been “screwed” by Apple, we’d all be happy campers.

    Also – don’t forget that Apple as now released a phone, refreshed it’s flagship computer and it’s entire iPod line AND will be releasing a brand new OS next month. I’d say they’re doing pretty well. :)

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  9. Bottom line, they didn’t have to do the credit. They’ve already sold the phones, they could have sat on the cash but they are actually giving some money back. I’ve never seen any other company do something like that.

    Then again, I’ve never been an early adopter for this very reason, so it doesn’t effect me at all.

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  10. open source is the way of the future Saturday, September 8, 2007

    OpenMoko is the open way. Do with it what you wish!

    http://www.openmoko.com

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