The immaturity of consumers (or "I want a refund!"). ⇒
6 September 2007, mid-afternoon
An interesting response from Apple: Steve Jobs has posted open letter on Apple's web site to iPhone early adopters offering them a 100 bucks store credit. This link was found via Daring Fireball.
This is a post from my link log: If you click the title of this post you will be taken the web page I am discussing.
I love how apple can do no wrong.
They drop the price by $200 on a newly released product after they realize their rip off prices are hurting sales. People complain about it and fanbois tell them off for being ripped off, justifying apple’s decision and saying it’s the law of the game.
Then Steve Jobs does damage control with $100 you have to spend at the apple store, and fanbois praise apple again for ‘doing the right thing’.
by Iluvitar on September 6 2007, 5:08 pm #
They drop the price by $200 on a newly released product after they realize their rip off prices are hurting sales.
But that’s how supply and demand works. They’ve sold nearly a million now, so there were lots of people frothing at the mouth to buy them at $600 bucks. I’m guessing they’ll sell a ton more at the new price.
by ramanan on September 6 2007, 6:27 pm #
The price cut heard around the world.
by Ramanan on September 7 2007, 9:00 am #
Naw, their sales were nothing close to what they wanted the sales to be (think ipod). People in North America aren’t price conditioned to actual phone costs because of the subsidies their fixed 2-3 year contracts give them so the $600 price tag did hurt their initial sales pretty big.
It’s also a big blow to all the people that bought into it right away so they could be the first kid on the block with a shiny new toy making them look cool when they answer the phone call from their mom in the coffee shop. When everybody can get one for cheap, the Apple exclusivity club isn’t worth that much anymore.
by Iluvitar on September 7 2007, 12:59 pm #
I don’t know if Apple expected the thing to sell as well as its other iPods. They’ve probably lowered the price because everyone willing to spend $600 on a phone has done so. That’s usually how things work. They must have been aware that people in the states aren’t like people in Europe with respect to phones. Anyway, apparently they’ve sold a million units thus far, or thereabouts. They want to sell 10 million by the end of 2008 (Jobs said they want 1% of the market or some shit like that) so they seem on track to me. I’m guessing at $400 they’ll sell a whole bunch more.
I’m thinking they have a new iPhone in the works already, hence the price drop. Maybe a 3G one for Europe.
Your second point is kind of the point of the article I linked to:
by Ramanan on September 7 2007, 1:44 pm #