1. mikec#IM's Avatar
    The nonesense is that to be early was to be a "sucker." To the contrary, to be early was to pay $200- to be early without having to stand in line. There is a distinction there for those who can see it.

    It took IBM two decades to figure out that many of their customers would pay a premium to be early. Apple understands pricing better than anyone else in the business; they are the only vendor in consumer electronics that says what the retail price of their product will be and makes it stick. Microsoft would die for that power. Competition from Apple determines the price of the Zune. Carriers price the Treo and whoa be unto Palm if they try to underprice the carriers to the consumer.

    I have paid a premium for every Treo but still have had to wait for GSM. Apple did not make me both pay a premium and wait.

    You are probably right that "a lot of people are glad they waited." A few are probably sorry that they did not. Most will not buy at any price. That does not make the early people "suckers."

    We are the "heat seekers" and we know that we always pay a price to be early. It is nice to be able to afford it.
    Nice spin, bur $200 lighter in the wallet sucks.

    Technology (beta products, imho) are sold at a premium to the early adopter. Fine if you can afford it.

    But Apple's 33% price cut is very drastic, and it can't help but generate buyers remorse. I think some folks feel suckered, esp. since Apple's pricing track record indicates that this was not the ecpected action they would take.

    I still think they aren't selling as many as expected - possibly a lot fewer than expected - and this price cut is to fuel more sales.

    What's really interesting is that now, the "phone" function is only "worth" $99, if you use Apple logic (Touch+99=iPhone).

    Anyway, I don't think anyone predicted this price hack (I certainly thought Apple would keep price high), but they also realize (smartly) that now is the time to get as many iPhones out there as possible, and if price cuts do it, so be it.
    09-06-2007 12:07 AM
  2. mikec#IM's Avatar
    hmmmm, i'm not so sure. i think the Touch is limited in its data entry and at the new iPhone's price point i just can't see this happening. time will tell as they say!
    Yes, it make it's tough with the price close - but remember, there are millions of other Sprint, Verizon, and T-Mobile folks that want the Touch and don't want to switch to AT&T.

    They are overpricing the Touch to drive iPhone sales...we'll see how that works.
    09-06-2007 12:10 AM
  3. Pearl_Diva's Avatar
    The nonesense is that to be early was to be a "sucker." To the contrary, to be early was to pay $200- to be early without having to stand in line. There is a distinction there for those who can see it.

    It took IBM two decades to figure out that many of their customers would pay a premium to be early. Apple understands pricing better than anyone else in the business; they are the only vendor in consumer electronics that says what the retail price of their product will be and makes it stick. Microsoft would die for that power. Competition from Apple determines the price of the Zune. Carriers price the Treo and whoa be unto Palm if they try to underprice the carriers to the consumer.

    I have paid a premium for every Treo but still have had to wait for GSM. Apple did not make me both pay a premium and wait.

    You are probably right that "a lot of people are glad they waited." A few are probably sorry that they did not. Most will not buy at any price. That does not make the early people "suckers."

    We are the "heat seekers" and we know that we always pay a price to be early. It is nice to be able to afford it.
    I'm sorry, but I still view it as a smack in the face. Being early and paying more is one thing, that's expected. But this is only 2 months. Maybe if they'd done it right before the holiday shopping season, it wouldn't seem so bad. Or maybe just took off $100.

    I can guarantee some peope feel like suckers because they spent $200 more. And the 4GB people should really feel crappy. Their phone is obsolete after 2 months and they payed $200 more for half the space!
    09-06-2007 12:30 AM
  4. cardfan's Avatar
    I bought one around 8/26 and was fortunate that i took it back (the wife had probs with reception at her work on a military base).

    But had i kept it? Yeah, i'd been kinda mad about it. Noone likes buying something and have it decrease 30% the next week and NOT be able to get some kind of credit.

    It's surprising to me that Apple would do this and not offer some kind of itunes credit thing to the early adopters. Apple is usually very smart in its marketing. You don't want to punish your most faithful.

    Again, i'm surprised. Apple could eat those credits easily and save a lot of face. Heck, they'd be praising apple even more so than already.
    09-06-2007 06:19 AM
  5. marcol's Avatar
    What's really interesting is that now, the "phone" function is only "worth" $99, if you use Apple logic (Touch+99=iPhone).
    Jobs did have logic like that in the Jan keynote but it's not the only way of looking at it. For some the calculation will be Touch+99+contract=iPhone. Of course if you were on a similarly priced or more expensive contract that has just finished then the cost of a new contract probably doesn't way heavily on your mind. I guess what I'm trying to say is that whether a person perceives it as iPhone=Touch+99 or iPhone=Touch+99+(24x60), or something between the two, will depend on the person concerned, his/her circumstances, general attitude to these things etc, etc.

    But Apple's 33% price cut is very drastic, and it can't help but generate buyers remorse.
    Best bet is to take the price of the contract into account too. Then it's only a 10% cut

    I still think they aren't selling as many as expected - possibly a lot fewer than expected - and this price cut is to fuel more sales.
    We'll see, but I think you might be right. Remember all those consumer surveys that said loads more would buy if the device was cheaper? I guess plenty of people are more concerned with the sticker price than the contract price.
    09-06-2007 08:29 AM
  6. bruckwine's Avatar
    the real question is how many marginal units will they sell at the lower price. i think most consumers understand the prices of these electronic devices get cheaper in time. what i don't think the consumers expected was a price drop this severe, this quick. it will be interesting to see if the price drop changes people's perception of its quality.

    regards
    I don't think it'll change perceptions at all - just willingness to buy despite perceived flaws. In my acse i'd much more willingly pay $399 for a phone w/o 3G (e.g. the treo 680) than to pay $599 for the same (which is almost like two phones). The iPhone still has the same flaws, but at the lower price it's more bearable!
    09-06-2007 08:44 AM
  7. bruckwine's Avatar
    The nonesense is that to be early was to be a "sucker." To the contrary, to be early was to pay $200- to be early without having to stand in line. There is a distinction there for those who can see it.

    It took IBM two decades to figure out that many of their customers would pay a premium to be early. Apple understands pricing better than anyone else in the business; they are the only vendor in consumer electronics that says what the retail price of their product will be and makes it stick. Microsoft would die for that power. Competition from Apple determines the price of the Zune. Carriers price the Treo and whoa be unto Palm if they try to underprice the carriers to the consumer.

    I have paid a premium for every Treo but still have had to wait for GSM. Apple did not make me both pay a premium and wait.

    You are probably right that "a lot of people are glad they waited." A few are probably sorry that they did not. Most will not buy at any price. That does not make the early people "suckers."

    We are the "heat seekers" and we know that we always pay a price to be early. It is nice to be able to afford it.
    You must've had a different experience ffrom the thousands I saw queueing up to get that $599 (now $99) phone day 1 & 2...as a matter of fact it was only after the first week that you could really stroll in. Not to mention activation problems ealy bugs etc and i'd say $200 wass a lot to me a beta community!

    The first set of early adopters went thru hell in that summer heat and it's a real kick in the nuts to now see the phone for such a cheap price. I wouldn't call them suckers but "masochist" might be better adjective for the 1st day buyers.
    09-06-2007 08:51 AM
  8. tx76mike's Avatar
    Is there someone out there who bought the 8GB one in less than 14 days and tried to return and buy another one to recoup some credit? I figured even with the restocking fee, you would still net some return to spend on something else.
    09-06-2007 09:19 AM
  9. whmurray's Avatar
    You must've had a different experience ffrom the thousands I saw queueing up to get that $599 (now $99) phone day 1 & 2...as a matter of fact it was only after the first week that you could really stroll in. Not to mention activation problems ealy bugs etc and i'd say $200 wass a lot to me a beta community!

    The first set of early adopters went thru hell in that summer heat and it's a real kick in the nuts to now see the phone for such a cheap price. I wouldn't call them suckers but "masochist" might be better adjective for the 1st day buyers.
    I "strolled in" to the Apple Store in Stamford, CT at 1pm on Saturday and was out with my phone in five minutes. (I admit that dealing with AT&T took a little longer.) (I also admit that I made more than enough on my Apple stock to pay for the phone.)

    But, am I mistaken that the same people who argued that Apple priced the phone too high in the first place are the same ones that are whining because they cut the price too much too soon? "No good deed goes unpunished."
    09-06-2007 09:38 AM
  10. Dim-Ize's Avatar
    Jobs to early adopters: Suckaaaaaaaaaars!

    $200 cheaper now..

    LOL.

    This sums it up.

    I don't care how you spin it.

    Folks in this thread are either: or or :censored: or :cry:
    09-06-2007 09:55 AM
  11. tx76mike's Avatar
    I guess what I meant was if you purchased the iPhone wherein you are still within the 14-day return policy in reference to the price cut from yesterday - has anyone tried to go back to the Apple Store to return and buy another one at the lower price? if so, were you able to do so, or use the difference to purchase other stuff?

    Thanks!



    Is there someone out there who bought the 8GB one in less than 14 days and tried to return and buy another one to recoup some credit? I figured even with the restocking fee, you would still net some return to spend on something else.
    09-06-2007 12:15 PM
  12. tx76mike's Avatar
    Never mind... Just called my Apple Store. They indicated if I go in there with the receipt, they will give a credit back. Not sure how much, but will find out this afternoon

    I guess what I meant was if you purchased the iPhone wherein you are still within the 14-day return policy in reference to the price cut from yesterday - has anyone tried to go back to the Apple Store to return and buy another one at the lower price? if so, were you able to do so, or use the difference to purchase other stuff?

    Thanks!
    09-06-2007 12:56 PM
  13. cmaier's Avatar
    Looks like everyone gets a $100 store credit. Nice gesture by Apple.
    09-06-2007 03:50 PM
  14. cardfan's Avatar
    Yep, it was. And IMO, was a nobrainer..

    Now everyone will kiss and make up..lol
    09-06-2007 05:18 PM
  15. braj's Avatar
    I think this may have a chilling effect on the next big hyped release from Apple. People may wait to see if there is a price drop before getting burned again.

    But honestly, cel phones do seems like they can get discounted rather fast in the market, usually because of deals by the carriers to increase new customers. The fact that Apple sells them via retail (unlike any other vendor really) makes this much more high-profile IMO.
    09-06-2007 06:24 PM
  16. whmurray's Avatar
    I think this may have a chilling effect on the next big hyped release from Apple. People may wait to see if there is a price drop before getting burned again.

    But honestly, cel phones do seems like they can get discounted rather fast in the market, usually because of deals by the carriers to increase new customers. The fact that Apple sells them via retail (unlike any other vendor really) makes this much more high-profile IMO.
    Agreed and agreed. I think the new iPods will do very well.
    09-06-2007 06:54 PM
  17. Pearl_Diva's Avatar
    I "strolled in" to the Apple Store in Stamford, CT at 1pm on Saturday and was out with my phone in five minutes. (I admit that dealing with AT&T took a little longer.) (I also admit that I made more than enough on my Apple stock to pay for the phone.)

    But, am I mistaken that the same people who argued that Apple priced the phone too high in the first place are the same ones that are whining because they cut the price too much too soon? "No good deed goes unpunished."
    I take exception to "whining". I'll tell you why I'm unhappy. Because to drop prices so quickly tells me they're admitting they should never have charged $600 in the first place, but NOT before collecting that from a significant number of people. If it had been closer to Christmas like they claim they were trying for, maybe people wouldn't have been so unhappy. That's why they have to save face with the store credits. It's like they've admitted they overcharged in the first place. If they didn't feel they were overcharging, they would have stood by those prices for a lot longer.

    Also does that mean you won't be redeemimg your store credit?

    P.S. It isn't that I'm not happy Apple priced the iPhone correctly. It's that it looks bad that they charged $200 more, then somehow "realized" their "mistake" after collecting a lot. Maybe if within a week of releasing the iPhone they'd done this and offered credits, it also might not look so strange. Yes, I'm a bit cynical, LOL!
    09-06-2007 06:59 PM
  18. mikec#IM's Avatar
    I take exception to "whining". I'll tell you why I'm unhappy. Because to drop prices so quickly tells me they're admitting they should never have charged $600 in the first place, but NOT before collecting that from a significant number of people. If it had been closer to Christmas like they claim they were trying for, maybe people wouldn't have been so unhappy. That's why they have to save face with the store credits. It's like they've admitted they overcharged in the first place. If they didn't feel they were overcharging, they would have stood by those prices for a lot longer.

    Also does that mean you won't be redeemimg your store credit?
    I hear ya...Apple reamed the public for every cent. Now that the iPhones are not selling as fast, they lop off 1/3 the price?

    Why not offer is at $399 to start?

    I know, I know, pricing is an art, blah blah blah. I've been through all the classes and such on this topic. Problem is that Apple beleived the iPhone was really the JPhone, and probably let the pricing get away from them.

    And from Job's original keynote:

    "So what should we price it at? Well, what do these things normally cost? An iPod, the most popular iPod, $199 for 4 gig nano. What’s a smart phone cost? Well, they say you get the phone and some of the Internet with it, although that’s questionable. But they cost somewhere around $299. You can get them for $199. Palm just introduced one at $399 yesterday, so they generally average about $299 with a two-year contract. Now, these phones sort of do music but nobody uses them for music because they’re not very good and so they end up buying an iPod to go with the phone. We know, we sell the iPod. And so people spend $499 on this combination"

    All trying to explain away the inflated price.

    And his recent actions, first, an a big "eff you" to customers, and then giving then $100 credits (for more overpriced stuff):

    (from article http://www.bakersfield.com/119/story/229757.html)

    "But Jobs added that "the technology road is bumpy," and there will always be people who pay top dollar for the latest electronics but get angry later when the price drops.

    "This is life in the technology lane," Jobs said.

    Immediately after the cuts were announced Wednesday, Jobs' tone was less conciliatory. He tartly rebuffed criticism about whether some of Apple's most die-hard fans would be miffed by the company's latest actions.

    IPhone owners who bought their device that morning, he said an interview with USA Today, "should go back to where they bought it and talk to them. If they bought it a month ago, well, that's what happens in technology."

    Jobs then apparently had a change of heart. The company is making the right decision by lowering the iPhone price, he said in his letter, but needs to "do the right thing for our valued iPhone customers."

    "(W)e need to do a better job taking care of our early iPhone customers as we aggressively go after new ones with a lower price," he said. "Our early customers trusted us, and we must live up to that trust with our actions in moments like these."

    Seems Steve needs to learn that "customers" ride that "bumpy road", and if you are a crappy driver, they don't appreciate it.

    I'm sorry, but there have been NO phones/pdas/gadget products where the price was cut 1/3 after 60 days.

    Customer will learn - they will wait 60 days to see if the price drops.

    If it's $399 now, how about in Dec? Maybe it will go down another $50, $100. Depends on how many Apple sells betwen now and then.

    Apple has put themselves in a tough spot. And now, if going forward, people will expect credits.

    Jobs is treating early iPhone buyers like he did the Apple ][ fans....he suckered them along, then put out the Mac, and completely disenfranchised them. Just look at history to see the furture...
    09-06-2007 07:24 PM
  19. Pearl_Diva's Avatar
    It's because someone pointed out to him that it looks like he was milking early adopters, I bet you that's it.

    Honestly I wouldn't have gotten that feeling had they done this 5-6 months later around Christmas. I'd have said "oh well" because it's normal for a lot stuff to drop after 6 months anyway. Except for Apple stuff of course, but cell phones are different, as someone else probably pointed out to Jobs.

    P.S. I see stock price dropped over the announcement of the price cut. interesting...
    09-06-2007 07:34 PM
  20. oalvarez's Avatar


    P.S. I see stock price dropped over the announcement of the price cut. interesting...
    like i said, it's now going to depend on the marginal unit sold at the new price. they're going to have to sell a lot more of them so to keep up with sales/profit projections (obviously).

    i think they did the right thing by the consumer to safeguard their goodwill. does it make the situation perfect? i don't think so, but it does show what kind of power this company has.

    thanks, Apple.
    09-06-2007 07:55 PM
  21. whmurray's Avatar
    I take exception to "whining". I'll tell you why I'm unhappy. Because to drop prices so quickly tells me they're admitting they should never have charged $600 in the first place, but NOT before collecting that from a significant number of people. If it had been closer to Christmas like they claim they were trying for, maybe people wouldn't have been so unhappy. That's why they have to save face with the store credits. It's like they've admitted they overcharged in the first place. If they didn't feel they were overcharging, they would have stood by those prices for a lot longer.

    Also does that mean you won't be redeemimg your store credit?

    P.S. It isn't that I'm not happy Apple priced the iPhone correctly. It's that it looks bad that they charged $200 more, then somehow "realized" their "mistake" after collecting a lot. Maybe if within a week they'd done this and offered credits, it also might not look so strange. Yes, I'm a bit cynical, LOL!
    I will claim my credit. They have all kinds of cute toys in the Apple Store that I would like to have.

    Still, I have to say that I feel less ripped off by Apple than I did paying Palm $700 for a GSM Treo while CDMA customers were paying $400-. I cannot remember; did Palm ever offer me a credit?
    09-06-2007 09:14 PM
  22. whmurray's Avatar
    It's because someone pointed out to him that it looks like he was milking early adopters, I bet you that's it.

    Honestly I wouldn't have gotten that feeling had they done this 5-6 months later around Christmas. I'd have said "oh well" because it's normal for a lot stuff to drop after 6 months anyway. Except for Apple stuff of course, but cell phones are different, as someone else probably pointed out to Jobs.

    P.S. I see stock price dropped over the announcement of the price cut. interesting...
    As a stockholder, I noticed that the stock gave up on the announcement the gain that it had in anticipation of the announcement. Perhaps I am forgiving of Apple because my $12- stock is now selling for $130-. You think?
    09-06-2007 09:17 PM
  23. oalvarez's Avatar
    poor palm....
    09-06-2007 09:52 PM
  24. whmurray's Avatar
    poor palm....
    Indeed.
    09-06-2007 09:53 PM
  25. mikec#IM's Avatar
    This thread was lonely...so I'm giving it a bump.

    Maybe all the iPhone owners are satisfied. ;-)
    09-15-2007 09:52 AM
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