ReveNews
Apple's iPhone Apology
Give me a break! Apple had to apologize for dropping the price of the iPhone?!? What bizarre alternative reality did I just enter?
The Phone wasn't hitting sales projections so Apple lowered the price. Apple didn't have a diabolical plan. I can just see Steve Jobs in a dark room before launch: "So we jack up the price to 600 bucks. Screw the loyal users. We'll drop to 400 smackeroos after 2 months."
No! The iPhone isn't selling as well as Apple hoped. Was it the price tag? Maybe. Was it that customers need to use AT&T Wireless? Maybe. Was it that Apple products first version are produced in Detriot? OK, not really. The iPhone is made in China but Apple tends to have defects in its first releases. For anyone who has had an iPod with a bad battery, were you about to trust Apple with that beautiful large, color iPhone screen and the first version battery? Hell no!
So the consumers who had to have it the first day, the ones who waited in line for days are now upset that the price dropped $200? Give me a break! Are they going to demand replacements when the next version comes out in Q4 fixing all of the defects?
My wife was in retail years ago. Shoppers would come in and buy something when it first came out. The store was lush with it. The shopper would have choice of color, style, size, you name it. Then when it went on sale at the end of the season, they would demand an adjustment and the stores would give it to them. GIve me a break! One woman returned bedding after 5 years because it faded. Uh huh.
Anyone who bought the iPhone when it first came out should be willing to pay whatever Apple asked. The folks who bought it in the last few weeks, yeah, they may have a valid issue.
ZDNet points out that Apple will win and the $100,000,000 loss won't really be a loss.
I guess this is better than Audi which famously (and correctly) blamed drivers for accidents and lost half of its marketshare.
Steve Jobs knows what he's doing. How many people have made over $1 billion from two companies?
I actually returned mine after playing with it for a weekend (just preferred the Blackberry more0... I wonder if I'll still get the reimbursement?
I think they lowered the price on the iPhone because of the introduction of the iPod touch (and to increase sales in Q4). They need to keep the prices of the iPhone and iPod touch closer and that meant either raise the price of the iPod or lower the price of the iPhone (which I am sure they were planning to do before Q4 anyway).
As for the $100 rebate - I think Apple will generate more money from a $100 in store rebate in the long run (probably what they said over at ZDNet). It is hard to find anyhting at an Apple store for less that $100.
Finally, I agree that if you have to have it first, you know you are going to pay full price - quit crying everybody!
I'm still not buying the argument that this was due to slow sales. I think the iPhone was priced high when it was the only mult-touch game in town, and now they've brought the price down with the introduction of the iPod Touch.
Apple wants to sell iPods to people who want iPods, and iPhones to people who want iPhones. What they don't want is people who want an iPhone, but will make do with the combination of an iPod Touch and freebie phone rather than cough up an additional $300.
They needed to refresh the iPod line overall and get a real video iPod on the market. And with the wireless capabilities of the iPod Touch, it would have gutted iPhone sales if the iPhone had stayed at $599. Instead, they've got a nice, cohesive product set that give consumers a lot of choice without price being a huge factor. I can get a video iPod/wireless device, or throw in a phone for a hundred bucks.
I certainly didn't feel ripped off that my iPhone cost $600. The moment I saw the iPod Touch I knew they were going to have to do something. I mean, I'll take my ecoupon and all -- I'm eyeing an iLife '08 family pack, although I don't know what I'll do with the dollar I have left over.