Thursday, September 06, 2007

Apple Offers $100 Credit to Early Adopters

Kudos to Jobs.

CEO Steve Jobs apologized and offered $100 credits Thursday to customers who shelled out $599 for the most advanced model of the iPhone, only to have the company unexpectedly slash the price $200 in a push to boost holiday sales.

In a letter on the company’s Web site, Jobs acknowledged that Apple disappointed some of its customers by cutting the price of the iPhone’s 8-gigabyte model and said he has received hundreds of e-mails complaining about the price cut.

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.

Of course, it would have been nice if he had anticipated this, but it’s always good to see a company quickly respond to their core customers.

(11) Comments
Posted by Owen at 1928 hrs
Technology

  1. As one of those early adopters who paid $499 for his 4 gigabyte iPhone (which I love), all I can say is: w0-00000TTTT!!11

    and wonder what I’ll spend the $100 credit on… maybe an iPod nano “phatty” for someone special…?

    Posted by scott on September 06, 2007 at 2109 hrs


  2. When Scott pulls his iPhone out of his pocket and puts it to his ear, it makes a lightsaber sound.

    Posted by John Foust on September 07, 2007 at 0737 hrs


  3. Pardon me, but whatever happened to “Let the Buyer Beware?”

    Posted by .(JavaScript must be enabled to view this email address) on September 07, 2007 at 0857 hrs


  4. Nothing happened to it.  Why do you ask?

    Posted by scott on September 07, 2007 at 0859 hrs


  5. Clarendon, whatever happened to “Listen to your customers”?

    Posted by John Foust on September 07, 2007 at 0919 hrs


  6. I think this whole thing is pretty simple, and there’s nobody to ridicule or be mad at. 

    1.  Apple made a thing people wanted and according to supply and demand, priced it accordingly.

    2.  People who felt it was worth that amount (lots of them) bought them.

    3.  Apple decides to get seriously aggressive with this thing for the holiday season so they slash the price dramatically.  Everyone who owns technology understands that what you buy today will be replaced next year with something twice as good at half the cost.  You live with it.  But in this case, the change was so quick and so much that the early adopters felt particularly stung by it.  Did they “deserve” to get refunds?  No.  Was Apple obligated to give them anything?  No.  Was someone suing or otherwise demanding that Apple do something?  Not that I’m aware.  But people didn’t like it. 

    4.  In response to this, Apple decides the goodwill is going to outweigh a few mil in rebates.

    Cha-ching.  I have my $100 gift certificate.  Or will shortly. 

    So what’s to complain about?  Did some party in this little drama act in a way that’s not right?  I don’t see it.

    Posted by scott on September 07, 2007 at 0928 hrs


  7. Perhaps Clarendon is Ferengi. 

    The first of the Ferengi Rules of Acquisition is “Once you have their money, never give it back.”

    Posted by John Foust on September 07, 2007 at 0938 hrs


  8. No, I have nothing against the goodwill offering of Apple or Steve Jobs, my point is against those who whined to Apple.

    If I buy a gas on Friday at $3.00 a gallon, and it goes to $2.95 a gallon on Saturday, do I have the right to go back and expect money that values the price difference?  No, in all likelihood they’ll tell me something about missing the boat.

    If you’re getting a $100 from Apple, kudos to you sir I say!  May you do with it what you wish.

    My overall concern is Apple may be opening a Pandora’s Box in exchange for short-lived goodwill.  What happens with the next likely price decrease next year?  Will more checks go out since they did it once before?

    That’s what I mean.  High prices, followed by steep declines as economies of scale take over should be expected for Early Adaptors.  This is just part of a normal product life cycle.

    This just looks like they listened to a bunch of whiners.

    Though from all the reports, you’d hope they’d be listening on product security and other quality issues, not a drop in price?

    Posted by .(JavaScript must be enabled to view this email address) on September 07, 2007 at 1224 hrs


  9. Clarendon, it’s no doubt calculated.  A percentage of iPhone buyers will take the rebate.  Many won’t.  This time around, it’ll smooth the waters.  It’s not like Jobs isn’t capable of herding the Mac fanboys.  Go look at their stock price history.

    Posted by John Foust on September 07, 2007 at 1242 hrs


  10. Store policies on price drops usually have a time limit - I think it’s anywhere from two weeks to 30-days.  But that’s for things that go on sale right after someone buys it.  This is just a price drop.

    I agree with Clarendon that this may come back to bite Apple in the rear.  When was the last price drop on the Mac?  Or on a particular model of iPod?  I imagine those people are now complaining as well.

    Not that any of this is any skin off my back.  I don’t own any Apple products, nor any of their stock.  But it’s fascinating to analyze from the sidelines.

    Posted by David on September 07, 2007 at 1245 hrs


  11. my point is against those who whined to Apple.

    Did people really do that?  There’s a difference between being unhappy and demanding recompense.  To my knowledge nobody was doing the latter.  Should they not have been unhappy?  I think it’s pretty understandable.  As steve pointed out, everyone expects that today’s widget will become widget-plus and sell for half price next year.  Sad, but oh well.  However, when that phenomenon happens this quickly and the price change is that much… yeah, I can see where people raised eyebrows.

    Apple has long had a price protection policy.  They have chosen - as is their prerogative - to do more than their policy in this case.  I don’t see where that leaves them too vulnerable in the future.  Not doing so carries risk also.  In the future people would be less likely to buy a new product, thinking that perhaps the price will drop 33% in two months.  At least people can be reassured that if anything that drastic were to happen they could expect similar treatment.

    Posted by scott on September 07, 2007 at 1311 hrs


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