After Wednesday’s drastic iPhone price reduction, it came as no surprise when the phone’s early adopters collectively responded with a succinctly stated “WTF.” After all, the iPhone’s success — and subsequent price reduction — was partially in thanks to the loyal Apple consumers that jumped on board barely two months ago, making the premature and dramatic price change feel suspiciously similar to a punch to the babymaker. In typical Apple fashion, Mr. Steve Jobs quickly responded to the clamor with the promise of $100 Mac Store credits to all initial buyers of the iPhone. This efficient reaction somewhat quelled the disdain, but still left an important question lingering: What the hell was that about? It seems ridiculous to think Apple could have expected anything less than an uproar; sure, we’re all well-meaning people who want to share the magic of an affordable touchscreen, but quite honestly, the way the price reduction was initially introduced (i.e., no acknowledgment of potential offense) went against basic human instinct. And ethics. And the thing is, we know how smart the crew at Apple is, so we just don’t get it. Thank heaven we also know how smart the crew that reads JS is, because we need you to help us make sense of this mess. Extra points if you have an iPhone; extra extra points if your theory turns out to be correct. Also, if you just need to vent, feel free — this is a safe space.


Quincy Friday, 09.07.07 @ 11:36 am

Basically, Apple is very smart…but only when it comes to what they know. (Hopefully that isn’t too redundant) Apple knows nothing about the cellphone world. they are quickly becoming a cellphone provider and this is a different market than computers or television screens. You are simply watching a new Apple baby grow up and make mistakes :)


Sean Friday, 09.07.07 @ 11:48 am

I can appreciate the frustration of early iPhone adopters who paid a premium for its features, but this is hardly un unusual situation for Apple or hi-tech in general. Less than a month after I bought my first iPod 3G 15GB, Apple released the 20GB 4G for $50 less. It happened again 6 months later with my wife’s Mini. Technology changes fast, and so do the prices. Nobody ever said living on the bleeding edge was cheap.


Ryan Friday, 09.07.07 @ 11:52 am

I have an iphone and was initially pissed, the gift card helps a little. That aside I think apple is going to make money off the announcement still. The only thing I can buy for $100 is a keyboard or the the shuffle. I’m actually going to give it to my fiancée that is in the market for a new ipod. It is still going to cost us another couple off hundred dollars. I think this is going to be the trend, you have to use the card at an Apple store but not much is under $100, it just justifies spending money on something you wouldn’t before.

I heard of people taking there iphone back, paying the re-shelving fee, and buying a new one at the new price and still being cheaper. There is a 90 day return on it.

I also agree the price decrease is actually a fan-boy tax for all the early adopters.

I will just keep my iphone, grunt a little, and spend more money on apple products… I’m just a sucker


blinX Friday, 09.07.07 @ 12:01 pm

My theory on the iPhone price cut: (1) Steve needed to make that cut to drive more sales to meet the Sept 30 deadline for selling a million iPhones and (2) now there is room to charge $499 for the impending 16 gig iPhone and $599 for the 16 gig with 3G.

These will be releases in November.


Jenna Friday, 09.07.07 @ 12:09 pm

My theory is that the iPhone simply didn’t get enough of a share in the mobile marketplace. I can’t dig up the numbers, but I’ve read a couple of articles that came out in July giving figures to back that up. Steve Jobs set the bar a little too high, and rather than admit defeat, he threw a curveball.

I was sooooooo tempted to get an iPhone, but I couldn’t justify signing a two-year contract with AT&T. I know many others who were in the same boat. Despite it’s hotness, it’s far too limiting to be with such a shoddy service like AT&T.


Alex Friday, 09.07.07 @ 12:14 pm

Normally Apple keeps the same price point when they introduce new products. The old model’s price is reduced and the new model takes on the on the old model’s price. For instance, Apple sells a 60 gig iPod for $300 and when they introduce an 80 gig iPod, for the holiday season, they reduce the price of the 60 gig and they sell the 80 gig for $300.

When Apple reduced the price of the iPhone, they didn’t introduce a new and improved model. This devalued everyone’s iPhone by $200. Also, 60 days is a very small window for a product cycle.

I don’t believe people would have been as upset if Steve introduced a new iPhone with a boat load of cool new features @ $599 and reduced the price of the 1st gen iPhone by $100. That’s what we are used to from Apple.

It went against the grain of what we expect. I doubt they’ll make this mistake again. If you know that they are going to hack prices by 33% after two months, why be an early buyer? Why wait in long lines?

If you are a loyalist, and bought the iPhone two months ago and would normally eBay off your iPhone for a new model, you aren’t going to get much for it to go towards your new one. That part still kind of stings.

Value=Apple Products.


onethousandsohms Friday, 09.07.07 @ 3:35 pm

Steve: “Yeah sorry about that, my bad…here is $100 Apple Dollars.”

You: “I was initially pissed buuuttttttt you are Steve Jobs and it is Apple…I forgive you…..*thinking*….man, I can get that 24″ IMac for only $1699 now.”

Me: “When is the next Apple lull going to be so that they can reinvent themselves again by developing a personal teleportation device or something?”


Anne Friday, 09.07.07 @ 4:23 pm

I heard some 17 yr old kid learned how to unlock the phone.


Chung Dha Saturday, 09.08.07 @ 4:00 am

I think its about the new iPod that is more like a downgrade from the iPhone. I think there afraid that people would buy the new iPod cause it got all the same functions and looks but only you can’t call with it. Cause the new iPod cost less then the iPhone. Now the edge the price level to be the same.

New iPod 16gig is 399 and iPhone is 399 too. How ever the 8gig version of the iPod is 299. Yeah I would buy the one with the phone function too for the same price however the 8 gig difference is pretty big. How ever why would I need 16 gig while it got wifi to watch youtube.


c.o. Saturday, 09.08.07 @ 6:25 pm

I disagree with Quincy. This wasn’t The Pepsi Challenge for Apple. Smart, well funded companies don’t just throw caution to the wind and say “What the heck, let’s just do a blind run and see what happens.” They do research.
I think blinX nailed it.
But still, WTF?


Mo Tuesday, 09.11.07 @ 8:29 am

Touche,Blinx nailed it.

1. Early adopters know they are live and die by the sword.In this case,its a double date.Apple and AT & T.
2. How did a million figure that the AT & T terms would be to their commercial advantage? A million people.
3.I love my gadgets but I know when I’m being taken for a ride.The hype,the aesthetically pleasing design(begging for your attention/wallet) and your hooked.
4.Hats off to Apple who design products(we can generally do without) and convince enough people that they can’t live without them.
5. The price cut was not the genius move,its was the $100 credit they offered after the iPhone community went Pete Tong.They pissed you off and made you feel special.
6. Forbes statement-It took just 74 days for the combination cell phone-iPod to hit the 1 million mark, which Apple had said it would achieve by the end of September. By comparison, it took two years for the company to sell 1 million iPods, Apple CEO Steve Jobs noted in a statement.Hmmm?




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