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View Full Version : $100 credit for iPhone early adopters - Steve still sucks!



Kuma
7th September 2007, 05:55 AM
To all iPhone customers:

I have received hundreds of emails from iPhone customers who are upset about Apple dropping the price of iPhone by $200 two months after it went on sale. After reading every one of these emails, I have some observations and conclusions.

First, I am sure that we are making the correct decision to lower the price of the 8GB iPhone from $599 to $399, and that now is the right time to do it. iPhone is a breakthrough product, and we have the chance to 'go for it' this holiday season. iPhone is so far ahead of the competition, and now it will be affordable by even more customers. It benefits both Apple and every iPhone user to get as many new customers as possible in the iPhone 'tent'. We strongly believe the $399 price will help us do just that this holiday season.

Second, being in technology for 30+ years I can attest to the fact that the technology road is bumpy. There is always change and improvement, and there is always someone who bought a product before a particular cutoff date and misses the new price or the new operating system or the new whatever. This is life in the technology lane. If you always wait for the next price cut or to buy the new improved model, you'll never buy any technology product because there is always something better and less expensive on the horizon. The good news is that if you buy products from companies that support them well, like Apple tries to do, you will receive years of useful and satisfying service from them even as newer models are introduced.

Third, even though we are making the right decision to lower the price of iPhone, and even though the technology road is bumpy, we need to do a better job taking care of our early iPhone customers as we aggressively go after new ones with a lower price. Our early customers trusted us, and we must live up to that trust with our actions in moments like these.

Therefore, we have decided to offer every iPhone customer who purchased an iPhone from either Apple or AT&T, and who is not receiving a rebate or any other consideration, a $100 store credit towards the purchase of any product at an Apple Retail Store or the Apple Online Store. Details are still being worked out and will be posted on Apple's website next week. Stay tuned.

We want to do the right thing for our valued iPhone customers. We apologize for disappointing some of you, and we are doing our best to live up to your high expectations of Apple.




http://www.apple.com/hotnews/openiphoneletter/

stewiesno1
7th September 2007, 06:43 AM
Ha . Smart play by Stevie here. He won't give them their money back or the full $200 off their original purchase but he will invite them into an Apple store to try something else and maybe , just maybe make a "big" purchase. I smell a rat here. I think they were always going to have these phones on sale at $399 and were looking at drumming up more business to their Apple stores. Knowing the hype of the pre-release campaign , they would of been assured of a healthy market within a few days of the release of the iPhone so why not give them all a reason to visit one of their stores. Clever marketing.
Stewie ( not Stevie )

OziMac
7th September 2007, 07:17 AM
He just rocked my world - I had my doubts, but he has come through like a bat out of hell.

I can live with $100 premium for the first two months - it's entirely acceptable, and probably should have been expected.

I knew I couldn't stay upset at you Steve. I will definitely spend up big with this gift you're giving me. :)

spargo
7th September 2007, 07:23 AM
Price drops happen all the time with new technology, hell even I got stung on a compact digital camera purchase 3 weeks ago where it went down 20+% the week after I brought.

Stuff like this does not happen all the time. Kudos to Apple.

cosmichobo
7th September 2007, 07:23 AM
In 1998 when Steve had the TAM slashed from $7500 to $1999, any of the original purchasers who complained were given a free Powerbook...

Quamen
7th September 2007, 07:26 AM
It will be interesting to see how one claims this $100 rebate...

But Apple are definitely doing the right thing here.

OziMac
7th September 2007, 07:33 AM
I agree Quamen - especially since it's like to be the US store, and I wonder whether they're going to make it $100 per customer rather than $100 per phone, or any other arbitrary limit.

I know that even without the eBayers, many people in the US bought a single iPhone for themselves, and subsequently returned to buy iPhones for their family/friends or simply as presents. Sure, like me, it makes them suckers several times over, but still will be interesting to see how all this is worked out.

cosmichobo
7th September 2007, 07:35 AM
But Apple are definitely doing the right thing here.

I don't know if my Marketing lecturer would agree with that...

You can always charge more to the early adaptors... It's the price they pay for being cool first :)

Quamen
7th September 2007, 07:40 AM
I don't know if my Marketing lecturer would agree with that...

You can always charge more to the early adaptors... It's the price they pay for being cool first :)

A 33% (i think) price drop in 2 months is not normal. Not even for high tech products.

If Apple did this on every product then nobody would buy anything until the next price drop was announced... which would then lead to it never coming and the product being discontinued.

You need to look at the big picture to see that Apple is doing the right thing. Both morally and in a commercial sense.

Evad
7th September 2007, 08:10 AM
The interesting thing now is all those people who got their iPhone off ebay. I'd imagine the chaps who were flogging these off on ebay are cheering, since many were sold for close to full price, now they'll be getting $100 back from Apple... happy days :)

That aside.. Apple are indeed doing the right thing. Go Apple!

decryption
7th September 2007, 08:11 AM
I love you Steve :D

I wish we'd get more blog entries from his Steveness.

ilostmypassword
7th September 2007, 09:35 AM
Steve is playing you all like a rusty trombone :D

Its odd- Apple price cut and they are a GOD - any other company price cuts and its a tacky sales ploy.

Go figure :D

it is a nice gesture though :thumbup: (or is it??? :eek:) ha ha- i need a coffee.

iSlave
7th September 2007, 09:42 AM
Steve is playing you all like a rusty trombone :D

Its odd- Apple price cut and they are a GOD - any other company price cuts and its a tacky sales ploy.

Go figure :D

it is a nice gesture though :thumbup: (or is it??? :eek:) ha ha- i need a coffee.

Afgh finally, a breath of fresh Cynasism. I was getting lonely taking my morning s...troll. ;)

Jobs is okay. If it was Gates then I'd poo poo it. It would be a $100 refund in a dozen different versions. :p

ilostmypassword
7th September 2007, 09:45 AM
Afgh finally, a breath of fresh Cynasism. I was getting lonely taking my morning s...troll. ;)


Careful- i might put that in my signature :D

jeremy_warnock
7th September 2007, 04:16 PM
why is it people will think its cool if Steve jobs takes a shit on stage???

iPhone owners apple screwed you less then 2 months and a $200 price drop. Great for us crap for everyone who bought it early.

Then Stevie comes out and says sorry heres $100 store voucher - a store voucher is not going to pay the interest on your credit card you used to buy the iphone with in the first place.

The way I see it apple have a 90 day return policy and a $50 restocking fee. Return your $599 iPhone and get $449 refunded. Then buy a new iPhone for $399 and pre-order leopard with the change

d2kagw
7th September 2007, 04:32 PM
When I read about peeps compaining about the price drop, I couldn't believe how down right dumb they are!!

The whole IT industry is just a financial mess when it comes to price drops and the whole *what's hot's now not* thing.
Just the other day I bought a new top-of-the-range digital camera only to find out the next day that canon released a new one (not at stores yet) I didn't call and demand a free upgrade or ask for a cashback (since my models' since droped $300 in price) - its the freakin bizz man!
one day something's worth X next day its worth NADA

Stop whining!

Just like ozimate said - I too would have paid $200 more just to have one before everyone else... bah - I would have even gone higher!

ilostmypassword is right though, dropping prices like that *and* making a statement about it technically is bad marketing... but I think at the moment, apple could wrap poo in tin foil and still get a pat on the back for being the good guys

iSlave
7th September 2007, 05:21 PM
why is it people will think its cool if Steve jobs takes a shit on stage???

Did he? I must have downloaded the wrong keynote! Must have been when he introduced the new nano. :p

Jazarus
7th September 2007, 06:16 PM
That 100$ apple voucher can go towards the purchase of new iPods for the early iPhone buyers ;D

gaehl
7th September 2007, 07:51 PM
That 100$ apple voucher can go towards the purchase of new iPods for the early iPhone buyers ;D

Or in my case it can go towards another iPhone.

dotnet
8th September 2007, 02:41 AM
I don't know if my Marketing lecturer would agree with that...

That's possibly why he/she will always remain a marketing lecturer, rather than, say, a successful business person... :p

Cheers
Steffen.

dotnet
8th September 2007, 02:47 AM
Its odd- Apple price cut and they are a GOD - any other company price cuts and its a tacky sales ploy.

It's odd? Maybe less so once you realise that this is not about a price cut, but a partial refund for all customers who bought before the price cut...

Whilst not unprecedented it is a rare gesture.


Go figure :D
Indeed.

Cheers
Steffen.

W9cae
8th September 2007, 03:03 AM
This just in from Macnn says what I have thought all along.


apple news/media reports
09/07/2007, 12:25pm, edt
friday, september 7th
Cringely: Jobs planned iPhone credit


Apple CEO Steve Jobs dropped the iPhone's price by $200 to make a buck and bolster his ego, according to PBS.org columnist Robert Cringely. The price cut -- which Jobs announced on Wednesday at the end of Apple's special event in San Francisco less than three months after the iPhone's initial launch -- was "a carefully and tightly scripted exercise in marketing and ego gratification," the columnist said. "It wasn't an accident. It wasn't a thoughtless mistake. [...] In the mind of Steve Jobs the entire incident had no downside, none at all, which is yet another reason why he is not like you or me," said Cringely, who worked in Jobs' garage during some of Apple's earliest days. "Steve does things like this because he can. It reaffirms his iron grip over both Apple and Apple's customers. It's a lot about ego and a little about business, though with Steve Jobs they are hard to differentiate."
"Apple introduced the iPhone at $599 to milk the early adopters and somewhat limit demand then dropped the price to $399 (the REAL price) to stimulate demand now that the product is a critical success and relatively bug-free. At least 500,000 iPhones went out at the old price, which means Apple made $100 million in extra profit."

The columnist insists that Apple would have left it at that if no customers had complained, but that Jobs expected complaints and had an answer waiting in the form of a $100 Apple store credit.

"This was no knee-jerk reaction, either. It was already there just waiting if needed."

Jobs knows that some customers will never use their store credit, according to Cringely, and that many iPhone owners who purchased the device from an AT&T store who do use it will have to make their first-ever trip to an Apple Store. Further, most purchases making use of the $100 credit will add up to much more than the credit itself, netting Apple more profits in the end.

"So Apple still comes out $75 million ahead, which is important to Steve Jobs."

Cringely also says Apple's chief makes most of his business decisions as reactions to the company board firing him back in 1985, when company shareholders settled instead for marketing professional John Sculley. Sculley tried his hand at marketing strategies as Apple's leader until Jobs took the reigns once again in 1997.

"In the 22 years since that humiliation, Jobs has devoted himself to proving: 1) that he can deliver the numbers (and does he -- Apple is the best-managed computer company on Earth), and; 2) that he is a better marketer than Sculley, the supposed marketing genius," Cringely explained.

SyncMan
8th September 2007, 07:13 AM
Way to go Apple, how to turn what could have been bad news, into some news that all the TV stations are playing, and giving free air time.

If ever this was the case of bad news = good news.

Asher Tuzza
8th September 2007, 07:38 AM
maybe my math is different from everyone elses...
$599 - $399 = $200
but they only get $100 credit - still that 100 million is now 50millon - and it was kinda a 'up frount loan' as well...
i wonder if the people who brought them, registered them, then took them back, will get the 100$ or not... :-)

SyncMan
9th September 2007, 07:18 AM
maybe my math is different from everyone elses...
$599 - $399 = $200

No your math skills are right, your capitalism skills are wrong :D

Currawong
9th September 2007, 01:08 PM
This just in from Macnn says what I have thought all along.


apple news/media reports
09/07/2007, 12:25pm, edt
friday, september 7th
Cringely: Jobs planned iPhone credit


Apple CEO Steve Jobs dropped the iPhone's price by $200 to make a buck and bolster his ego, according to PBS.org columnist Robert Cringely.

You realise that this stuff is just made up? Cringely is, depending on the year, a different person.

Asher Tuzza
10th September 2007, 07:47 AM
No your math skills are right, your capitalism skills are wrong :D

LOL - thanks for that - of course knowing that i dont use capital letters and being disclexic i initially thought that was what you were talking about - then i read it again and had a real laugh...

thanks for the laughs though

iSlave
10th September 2007, 08:37 AM
This just in from Macnn says what I have thought all along.


apple news/media reports
09/07/2007, 12:25pm, edt
friday, september 7th
Cringely: Jobs planned iPhone credit

So what if he did? Kudos for his marketing skills. What a visionary!
Obviously theres plenty of consumers who are desperate to step up first and beat the * pinata. That's obvious from the countless threads of desperate desire around here.

* pinata (http://en.wikipedia.org/wiki/Pi%C3%B1ata)

OziMac
15th September 2007, 08:44 AM
Okay, Steve officially sucks again...

iPhone credits seem only to work with people with current and active AT&T accounts. Nice one, you little prick.

I'm going to give it a go on the number I originally activated with before cancelling, but don't like my chances. Many others have been getting error messages even when they're still on AT&T plans.

Kuma
15th September 2007, 10:21 AM
The topic aint mine

and as for the $100 back to non att customers...

come on really.. whaddya expect...

you buy the phone you are meant to be with att

Goodbye
15th September 2007, 10:33 AM
Agree with Kuma. You buy the phone, you're meant to use it with AT&T, not circumvent the activation process. Apple aren't stupid, and I don't see a problem with this.

W9cae
15th September 2007, 10:45 AM
Kuma you have been in Japan too long.

This rebate thingy is one big mess. Seeing Apple had strong comments toward Microsoft for doing similar. Now they have dont exactly the same.

To be fair Apple should have given a voucher to any iPhone owner that purchased at the higher price. Regardless of there location & AT&T.

Kuma
15th September 2007, 11:36 AM
these people were happy to pay what they did 2 months ago... they saw value in the purchase...

apple were kind enough to offer a rebate to their customers... if you have an iphone (legitimately) and are with att... such is life...

Joe90
15th September 2007, 11:43 AM
these people were happy to pay what they did 2 months ago... they saw value in the purchase...

apple were kind enough to offer a rebate to their customers... if you have an iphone (legitimately) you are with att... such is life...

:thumbup: Crap consumers whine the loudest!

OziMac
16th September 2007, 05:16 PM
I was being mean. I take it back, you're all right. :p

mab
16th September 2007, 05:41 PM
these people were happy to pay what they did 2 months ago... they saw value in the purchase...

apple were kind enough to offer a rebate to their customers... if you have an iphone (legitimately) and are with att... such is life...


Apple didn't lower the price; they just dropped the nerd tax.