iPhone users crying for refunds already..

[Kupe#WP]

It could very well be the case that Apple planned on setting a higher price for the early adopters and then dropping it so that they could then pick up more sales and hit their mark. It's very possible that Apple knew that there was no way they would sell 1M iPhones at the price they initially set and knew they would have to adjust it after they had collected the "early adopter tax." There is no rule that said Apple would sell 1M phone at the price they initially set.

And with those "full circle" remarks, we find ourselves back at the point where Jobs is arrogant. A point I was trying to disprove (at least in the context of the price shift).

They could very well be on their projections. Why do you assume that they didn't factor in a price drop? They knew they would sell a certain number of phones at $600 and a certain number of additional units at a lower price.

Of course there's a planned price cut. There's a thing called Product Life Cycle and while there's no formula for how to apply it (well there is, but THAT formula doesn't have any real numbers in it), there are tried and true methods for managing product life cycle - methods Apple has re-proven time and again. It's what drives their meteoric stock price. They know how to introduce a product, they know how to keep that product viable for a good amount of time, and they generally know how to replace the product with a next-generation new product. They don't generally introduce a wholly new product with a planned 33% price cut in the first quarter of sales. That's too volatile for us stockholders.

Don't look at it as a subset, though that is valid, look at it as a totally different market. Apple had the early adopter market who would pay $600 and another market who will jump on at $400. they're picking up both markets.

An interesting viewpoint. I'm trying to decide which market would be most insulted by that kind of marketing plan, the subsidizers or the charity cases? While I agree a product's price will be forced to decrease over time (as it matures), especially in the tech industry, to plan the market shift the second month after introduction is unprecedented...and by unprecedented I mean it's never been done intentionally. Remember, these guys are trying to show quarterly results to a bunch of greedy, hi-expectation stockholders. Intentionally catering to two distinct markets inside of one quarter with a major price chop looks like a mistake and stock prices will likely reflect that.

 

[mikec#IM]

ha

Oalveraz,

People understand my points fine. Some even provide counterarguments. You just ignore because you can't respond. As you say, whatever.

As for my "pile" of a Treo, it's interesting you can separate the product from the company. I have tons of Apple stuff, and they make so great products...some the actaully have cut and paste.

That doesn't mean I blindly appologize for their miscues across the board.

Introducing a product, then 60 days later, whacking it 33% is just not an idea that is well received. Imagine if you bought that new BMW for 66K, and then it was 44K two months later. People just have a gut reaction to that.

Anyway, let's blame everything on Palm, it solves everything. (seems to work with Bush).

As for the ringtones, Apple is not being forced to charged - they want to. And to be able to offer "any part of the song", you have to buy the whole song - twice.

The market will move to buy content once, use (personally) how you want. This is what people will do, regardless of controls put out there, because it goes to the core feeling of "fair". People have no problem paying for content - thet just don't like paying for it over and over and over and over again.

 

[oalvarez]

Imagine if you bought that new BMW for 66K, and then it was 44K two months later. People just have a gut reaction to that.

actually not all that far off!

 

[AnteL0pe]

we find ourselves back at the point where Jobs is arrogant.

Of course he is, who would argue that he isnt?

They don't generally introduce a wholly new product with a planned 33% price cut in the first quarter of sales. That's too volatile for us stockholders.

I agree that this price drop was more dramatic and sooner than I expected, but I think everyone knew there would be a price drop before Christmas.

An interesting viewpoint. I'm trying to decide which market would be most insulted by that kind of marketing plan, the subsidizers or the charity cases?

Not sure why either would be. Some people want the newest shiny object the second it's released and those people are willing to pay a premium. Others are willing to wait to get it a bit cheaper.

Intentionally catering to two distinct markets inside of one quarter with a major price chop looks like a mistake and stock prices will likely reflect that.

No doubt it was a fast reaction, probably because they either sold iPhones to all the early adopters faster than expected or there simply weren't as many early adopters as expected. One of those is great news, one isnt. Their stock price did take a hit.

 

[oalvarez]

People understand my points fine. Some even provide counterarguments. You just ignore because you can't respond. As you say, whatever.

As for my "pile" of a Treo, it's interesting you can separate the product from the company. I have tons of Apple stuff, and they make so great products...some the actaully have cut and paste.

That doesn't mean I blindly appologize for their miscues across the board.

Treos are a pile. many here will admit to such, that's why they're here.

Your writing/spelling makes it difficult to comprehend what you're trying to say.

Congrats on owning "apple stuff" that "cuts and pastes"

what is your point again?

 

[mikec#IM]

sand

SAND, Oalveraz, SAND.

My apologies for the typos and spelling mistakes...sucky Treo doesn't have spellcheck, just like most (all?) mobile broswers. (Please note that "word suggest" is not a spellchecker.
You seem to understand them just fine.

Apple Desktops have cut and paste. Too bad the iPhone doesn't.

The Treo has influences every smartphone made in the past 5 years. Pile, yea, whatever.

 

[Pearl_Diva]

but surprisingly america continues to buy their products (such as yourself). i'm not familiar with the example which you point to, but i'm sure there's an explanation for it. maybe it wasn't that important and that is why you don't remember the details surrounding it?

Actually it was. I hesitated in buying the $2800 Powerbook that was out at the time, due to that. But that was a while ago(I think 2002 but am not sure), and that's why I forgot the exact details.

 

[AnteL0pe]

putting other devices down to make you happier with yours is lame. My 650 was a great phone, it was a love hate relationship, but there was far more love in there. I still keep mine around to run my TomTom software, but havent once been tempted to put my SIM back in it. For me, and many many others, the iPhone is a far better and more capable phone. What it does it does better than any other phone out there IMHO. It has its shortcomings, but these are issues that will most likely be fixed. The ability to add 3rd party apps is something i expect to see. Copy/paste would be nice, but i havent missed it yet.

 

[AnteL0pe]

Looks like Apple must not have been far off their 1,000,000th iPhone sale before the price drop because they hit it on Friday.

https://www.apple.com/newsroom/error.html#mn_p

http://forum.phonedifferent.com/showthread.php?p=1343765

 

[cmaier]

I needed some data off my treo 650 last night (it's been sitting in my nightstand drawer for about a month and a half). I plugged it in, because the battery was dead. (Syncing had long since become a crapshoot, so I couldn't get the info off my PC).

Anyway, last night I left the treo on my nightstand, and go to sleep. Just as my eyes close, I sense a bright light. I look over, and the treo was spontaneously rebooting itself.

Boy, I don't miss my treo.

Anyway...

That 1,000,000 iphone news is very confusing. Unless there was a mad rush after the discount news, it seems they were well on track to hit their sales goals without the discount (at least for the current quarter). And they normally don't announce a discount due to new products until the new products are out. Well, Apple is never boring, at least.

Update: just noticed a report on gizmodo that apple took the "add a new calendar entry" feature out of the ipod touch. That would be somewhat comical. (And the "add a new contact" feature is apparently still there. If they are trying to make the iphone look better, why not get rid of both?)

 

[mikec#IM]

yep

I don't think the price cut pushed it over the 1M mark...they were close already.

I'd like to see the AT&T activation number as well.

Maybe we will start seeing more in the wild.

But good news for Apple and shareholders.

 

[Kupe#WP]

Looks like "The Woz" also disgrees with his former partner's price cut/refund approach according to this article. I'm believing more and more it was a poorly-planned, knee-jerk overreaction to stagnated sales. Wonder if the sales numbers were jump-started by that fanboy-insulting price drop?