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	<title>GigaOM &#187; Apple</title>
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		<title>Apple drops iPhone prices. Users get ticked.</title>
		<link>http://gigaom.com/apple/apple-drops-iphone-prices-users-get-ticked/</link>
		<comments>http://gigaom.com/apple/apple-drops-iphone-prices-users-get-ticked/#comments</comments>
		<pubDate>Thu, 06 Sep 2007 16:00:00 +0000</pubDate>
		<dc:creator>Josh Pigford</dc:creator>
				<category><![CDATA[Commentary]]></category>
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		<category><![CDATA[iPhone]]></category>

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		<description><![CDATA[If you haven&#8217;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&#8230;for the mathematically challenged). The iPhone was released barely 2 months ago and [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=gigaom.com&#038;blog=14960843&#038;post=171057&#038;subd=gigaom2&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>If you haven&#8217;t heard already, at <a href="http://gigaom.com/apple/ipods-galore-the-beat-goes-on-apple-special-event-overview/">yesterdays event</a> 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&#8230;for the mathematically challenged).</p>
<p>The iPhone was released barely 2 months ago and thus a few users (especially those who dropped $600 on a phone) are a bit <a href="http://www.tuaw.com/2007/09/05/apple-screwed-you-so-now-what/">ticked</a>.</p>
<p>A <a href="http://joshuablankenship.com/blog/2007/09/06/dear-annoyed-iphone-early-adopters/">few</a> <a href="http://daringfireball.net/linked/2007/september#wed-05-moritz">points</a> have been made in regards to negativity towards the price drop.</p>
<p>I think Gruber summed it up best:</p>
<blockquote><p>&#8230;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.</p></blockquote>
<p>I certainly understand both sides here. I know if I had purchased an iPhone and paid the equivalent of a <a href="http://www.apple.com/macmini/">new computer</a>, I&#8217;d be ticked too. Being upset over spending $200 more than what you&#8217;d have to pay now is reason to be upset. But you&#8217;ve got to take things in to focus here.</p>
<p>Jobs is being completely honest when he <a href="http://www.usatoday.com/tech/products/2007-09-05-jobs-qanda_N.htm">says</a> &#8220;that&#8217;s what happens in technology.&#8221; 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.</p>
<p>As Gruber said, if you didn&#8217;t think the iPhone was worth $599, you shouldn&#8217;t have paid that much for it. It&#8217;s not about customer loyalty or respect. It&#8217;s not about you some how thinking your iPhone was any type of &#8220;investment&#8221; that wouldn&#8217;t drop like a rock in value. It&#8217;s about business and supply and demand. Period.</p>
<p><strong>Related research and analysis from GigaOM Pro:</strong><br />Subscriber content. <a href="http://pro.gigaom.com/?utm_source=apple&utm_medium=editorial&utm_campaign=auto3&utm_term=171057+apple-drops-iphone-prices-users-get-ticked&utm_content=shpigford">Sign up for a free trial</a>.</p><ul><li><a href="http://pro.gigaom.com/2011/01/mobile-q4-all-eyes-were-on-android-4g-and-the-rising-tablet-tide/?utm_source=apple&amp;utm_medium=editorial&amp;utm_campaign=waterfall?utm_source=apple&utm_medium=editorial&utm_campaign=auto3&utm_term=171057+apple-drops-iphone-prices-users-get-ticked&utm_content=shpigford">Mobile Q4: All Eyes Were on Android, 4G and the Rising Tablet&nbsp;Tide</a></li><li><a href="http://pro.gigaom.com/2010/12/report-a-mobile-video-market-overview/?utm_source=apple&amp;utm_medium=editorial&amp;utm_campaign=waterfall?utm_source=apple&utm_medium=editorial&utm_campaign=auto3&utm_term=171057+apple-drops-iphone-prices-users-get-ticked&utm_content=shpigford">Report: A Mobile Video Market&nbsp;Overview</a></li><li><a href="http://pro.gigaom.com/2010/10/in-q3-the-tablet-and-4g-were-the-big-stories/?utm_source=apple&amp;utm_medium=editorial&amp;utm_campaign=waterfall?utm_source=apple&utm_medium=editorial&utm_campaign=auto3&utm_term=171057+apple-drops-iphone-prices-users-get-ticked&utm_content=shpigford">In Q3, the Tablet and 4G Were the Big&nbsp;Stories</a></li></ul><img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=gigaom.com&#038;blog=14960843&#038;post=171057&#038;subd=gigaom2&#038;ref=&#038;feed=1" width="1" height="1" />]]></content:encoded>
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