iPhone Price Cut - Apple Just Dicked Us Over
September 06, 2007 at 01:15:00 PM, by Raymond So
Why I'm not so happy with the $200 price cut.
Apple iPhone Price Cut Sucks
There's a general saying, rather, rule of thumb when buying Apple products: Never buy at launch (or first gen for the matter). In most cases, I adhere to that rule. Bug fixes, improvements and updated products are sure to come out over time. That's just the way Apple does business. But, if you're an Apple enthusiast, how can you resist those tantalizing new products Stevie Jobs throws at us when announced? In the case of the iPhone, I was excited when it was announced and I wanted one right away to replace my dying 3 year old cell phone. Boy, did I teach myself a lessonwhen Apple announced iPhone price cut.
So like many of you, I was tuned in to the live blogging of the latest Apple Keynote for the new iPods. Imagine the shock and amazement when I read "$399 iPhones" on the site. Hmm, okay so new iPhones maybe? Wow, maybe the 4GB version just got a $100 price drop?
No. $399 for the 8GB iPhone (and $299 for the discontinued 4GB model), $200 off the original retail price. I was shocked. And angry. Apple just pulled a dick move not only to myself, but to every owner of the iPhone up to yesterday. This is certainly not the price early adopters have to pay to get an iPhone.
Yes, a price drop was inevitable, but a $200 price drop?! After only 3 months of being on sale? Are you kidding me? I scoured the Mac forums and there seems to be a general consensus among iPhone owners: We're angry and this is not only unacceptable, but totally uncharacteristic of Apple to do such a thing after months of advertising the $599 price before the product even launched. Many owners agree, I myself included, that we could live with a simple $100 price drop as that seems to be a fair amount, but to reduce the price by 1/3 is just wrong. Even the slow selling PS3 managed a fair $100 price cut.
Obviously, those who waited it out are ecstatic over the news and yes, being patient does reap the rewards. So what would have made Apple decide to make such drastic cuts in prices and so soon? Are iPhone sales really that bad that they need to be slashed? Is a newer iteration coming out soon? If you're going to sell a mass market appealed mobile phone, then it'd be wise NOT to lock it in exclusively with one carrier (AT&T). Not everyone wants to sign a 2 year contract for AT&T's service, buy their rather expensive plans, and then shell out $600 for the phone without any subsidies. Apple, that's probably the reason why iPhone sales haven't been out the roof.
So to those who purchased an iPhone prior to the price drop, I feel your pain. To those who waited, good job. Apple has now basically shown us that the iPhone's phone components are worth only $100 more than the $299 iPod touch. Fortunately for me, I have price protection guarantee on my credit card so if you have that, make use of it now.
C'mon Apple, help us owners out: At least give us some sympathy here. Give us our $200 back**. If a $200 refund isn't possible, at least give us a gift cards or send us a free iPod nano or something. We've supported you and this is how you pay us back? I've learned my lesson of not to buy early. But those new iPods do look appetizing...
**For those who purchased their phones within the last 14 days, Apple will refund you the difference from what a local Apple Store rep said, but if you're over that period, you're SOL. Apple really needs to change [read: improve] their price and return policy.
Update: Steve Jobs finally announced he would credit back earlyiPhone owners $100 Store Credit to Apple Store. It's not $200 but I guess it's better than nothing.
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