Comments on: iPhone Rebates & Power Of The People

By: Friday follow-ups, pt. 1: iEARS (iPhone Early Adopter Rage Syndrome). -- Hoover’s Business Insight Zone

Mon, 02 Jun 2008 18:50:08 +0000

[...] as an indicator that “iPhone sales are missing Apple’s internal targets.” And Om Malik thinks that the quick rebate offer is a reflection of the power of social media [...]

By: Pace of Solar Innovation Not that Fast, Says Solar Installer CEO « Earth2Tech

Tue, 18 Dec 2007 16:18:33 +0000

[...] advancing at a remarkable pace, then all of today’s solar customers are going to feel like iPhone early adopters over the next year. I’ve heard VCs talk about a Moore’s Law for solar, but that [...]

By: Gary Liew

Gary Liew — Wed, 26 Sep 2007 16:57:05 +0000

Not an iphone owner but thinking of getting one since it is so cheap now. A few comments.

1 - You think Mr. Jobs is worried about his customers? This is corporate America. He is only worried about the price of Apple stock. He did it because he knows that there are people out there that "must" be the first to have everything. Same as Xbox, Playstation etc. etc. etc. Six month later, price drops significantly. iphone, XBox, Playstation etc. etc. etc. If you want to be the first, then dont whine about the price. 2. Didn't anybody tell you not to buy the first iteration/model of anything. 6 months is a good time to wait for people to make complaints and companies to fix their product.

Then again, money is your and you can do as you see fit. I think I will wait until thanksgiving, bet there will be another huge discount during that day.

By: Grant Lynde

Grant Lynde — Mon, 17 Sep 2007 21:33:14 +0000

I am absolutely incensed by this credit. This iphone is my first (and LAST) apple product. The credit is useless because it is non-transferable and cannot be used at itunes. I've been on hold for 10 minutes to get the name of someone at HQ to write to... the best they can do is tell me that no one will help me even if I write.

Apple, go to hell!

By: iPology « maclalala

iPology « maclalala — Sun, 09 Sep 2007 06:34:27 +0000

[...] Om Malik が書いた「iPhone 払い戻しは民衆の力」と寄稿者 Kevin Kelleher の「Jobs [...]

By: Manu Sharma

Manu Sharma — Sat, 08 Sep 2007 14:40:34 +0000

I think there’s more to it than people think.

iPhone’s $200 Price Cut = $2 Billion Customer Handout
http://orangehues.com/blog/2007/09/iphones-200-price-cut-2-billion.html

By: Jeremy

Jeremy — Fri, 07 Sep 2007 20:39:16 +0000

I agree with Ellen Stafford. It's not that Steve didn't know the business, he just wants to explode it. It's all part of a carefully planned scheme.

You guys will need that $100 when you have to start replacing the batteries on those things anyway.

By: Friday links: reluctant rebate « Abnormal Returns

Friday links: reluctant rebate « Abnormal Returns — Fri, 07 Sep 2007 16:08:07 +0000

[...] X. Cringely, Fred Schruers, Paul Kedrosky, Turley Miller, Om Malik and Kevin Kelleher on Steve Jobs’ iPhone pricing “strategy” and the subsequent [...]

By: Martin Hesse

Martin Hesse — Fri, 07 Sep 2007 15:16:26 +0000

I was shocked by the reaction the public had to the drop in price for several reasons. First, not only is Jobs right about how "this is technology", but this is also business. Although we may love and be loyal to the products Apple markets and produces, our admiration alone does not and has not justified abandoning the basic tenets of a business venture. Second, I am told that we were duped into buying a $600 phone? No, we each valued its worth to us at THAT moment and considered it a worthwhile investment. Now it should matter little that it can be had for a fraction of the price. Like every tech product that has come before it, the price of the iphone was surely to decrease within a matter of months. Surely those who felt it worth the $600(not a paltry sum) to buy it instantly assessed both the risks and the rewards? What the people have asked Apple for is to compensate them for their negligent impulse shopping. But even the remedy provided is a business move; they are being consistent. And this should never have surprised anyone.

By: Avnish

Avnish — Fri, 07 Sep 2007 14:19:02 +0000

I think Steve Jobs came to know the realities of cell phone business. You cant keep a phone so high cost even if it is revolution technology. Reality is that cell phone is used by masses and it needs to be affordable and at the same time if you sell more you make more money. However in my opinion one reason could be holiday season sales and another could be some other competition coming with some amazing phone with better rates. I mean come on how can you drop prices all of a sudden, this is major PR disaster done by Apple and I doubt volume sale is the reason, I am pretty about future competition coming from rivals and Apple came to know about it and they lowered the price to make money ASAP. Look at the the PR disaster steps taken by Apple, first $200 rebate then refund for 14 days old customers, then $100 store credit, it all adds to anxiety level faced by Apple executives.

By: Matt Mendolera

Matt Mendolera — Fri, 07 Sep 2007 13:18:18 +0000

How is it even reasonable to expect that pissed off customers WANT $100 towards more Apple gear. I’m one of the fools who asked his fiance for the iPhone for my bday 3 weeks ago…and wrote in to Apple the second I heard about this price cut. What good does $100 towards new stuff do, if I never plan to shop at Apple again as a result of this greedy stunt. I’m in the tech industry–I expected a new version and a lower price to happen around December, given the holidays and the fact that it’s 6 months after the launch. But this week, and a 33% cut? That’s outrageous, especially when the standard return policies for most smart retailers are 30, 60 or 90 days…not 14. Apple has just destroyed their brand in my eyes.

By: Ellen Stafford

Ellen Stafford — Fri, 07 Sep 2007 09:19:39 +0000

Oh Please "Apple Listened"???? All of this was well planned out right from the start of the marketing hype when the phone first came out. If the Iphone didn't reach its targeted sales they knew they would drop the price. All Jobs did was wait until the outrage crescendo reached a predetermined pitch and then he condescendingly made a peace offering. I'm not impressed. And like other cult leaders, he has no real respect for his followers, more like contempt, I'd say.

By: feed

feed — Fri, 07 Sep 2007 07:28:17 +0000

actually it's not that big a price cut: over here in europe, it has emerged that apple is getting a share of the connection fees during the 2-year mandatory contract, so the price is higher for buyers as well as for apple itself. it's still $200 of course, but a lower percentage, and more iphones sold for less money means higher fee-based revenues

By: William Wei

William Wei — Fri, 07 Sep 2007 07:13:56 +0000

First of all, Apple changed the price for as big as $200 within such short time period for reasons and the reasons might be:

GPhone is for real now and it will be much cheaper than $599.
Apple realized that iPhone launch isn't as a hit as the market expected, so it try to correct the reaction from the market.
Apple rekons that the market will be getting competitive from its market research.

Now, for giving back $100 store credit doesn't really fix the negitive reaction. It should be $200 store credit if I was Steve. First, it equals to the $200 drop, but not really the immediate cash value that will hurt Apple.

The components didn't drop that much within 60 days, it is bad to show the public how much is iPhone's margin.

Again, personally, ATT deal is the one that will hurt Apple in the long run (is it 5 yrs exclusive deal?). iPhone could have had much bigger potential market grow. I think Apple realized that and that's why they launched iPod Touch to equalize their deal with ATT.

By: Jat Speak » From my feedreader

Jat Speak » From my feedreader — Fri, 07 Sep 2007 06:52:17 +0000

[...] Om Malik’s pains :- http://gigaom.com/2007/09/06/iphone-rebates-power-of-the-people/ [...]

By: Nitin Ahuja

Nitin Ahuja — Fri, 07 Sep 2007 05:16:29 +0000

I think its a question of timing. Dropping the price within 60 days of launch (that too 200 bucks) is unusual. I think even early adopters understand that they pay a premium for buying a product first hand, but the discount cycle kicks in typically in 6 months - 1 year. I am wondering why would they drop the price on such a short notice or on the contrary price is at 600 in the first place when they had to drop it so soon? which is part of the reason why few people are upset.