Posted by: Arik Hesseldahl on September 14
In the continuing saga concerning how far Apple can go in irking, irritating and generally pissing off its iPhone customers comes the latest word today that Apple has set the specific terms of the pricing rebate promised by CEO Steve Jobs in his open letter “apology,” from from Sept. 6.
The $100 store credit offered to early purchasers of the iPhone applies to everything offered in the store, everything that is except music sold on iTunes. As I noted a few days ago, lots of items sold at the Apple store go for more than $100, though there are plenty of iPhone/iPod accessories that cost less than that.
But I think its completely lame that you can’t use the rebate to buy a $100 iTunes gift card. Seems to me the store credit should have some flexibility: Take your credit for in-store purchases or all in iTunes credit. Why not give the customer the choice? Were I an iPhone owner, I’d take the iTunes credit and pass on spending $100 for some miscellaneous item in the Apple store. I’ve asked Apple why no iTunes credits, and will update when/if I hear from them.
To get your rebate, you enter your iPhone’s serial number on the Apple Web site, and receive a message via text message on the phone.
Here’s Apple’s FAQ file detailing all the rules. No matter what Apple does, it’s not going to placate everyone who feels they’ve been shafted by the price cut. Then again, who wouldn’t feel shafted paying $600 for a product that in two months or even 6 months was selling for $400? That’s technology, Jobs says. Okay then. That makes it okay.
Update:Tivogirl is saying the comments below that the rebate credit applies to physical iTunes gift cards, but not to electronic gift certificates bought online. That sounds reasonable to me, though I’ve still got a call in to Apple for clarification. As to the comments of those who are taking issue with the “irking and irritating” comment I made above let me put it this way: If the 8 gigabyte iPhone was really only worth $399 to begin with why wasn’t that the price begin with? One of the biggest complaints I heard universally leading up to the release was around the price being so high. $599 is a lot to pay for a phone, even an extraordinary one. $399 makes a little more sense.
Changing the price after only two months bugs me. I’m sorry but it does. Perhaps it would have bugged me less if the change came in late October, but that said, I applaud Jobs for having the guts to say he was wrong and issuing the rebates, but pricing the product a little more carefully at the start would have avoided all this trouble. And no, I don’t have any skin in the game because I don’t own an iPhone. Further, the cynic in me fully expects some lawyer to spin this whole thing into a class action lawsuit, if it hasn’t happened already.
From what I am seeing the people most pissed off about the rebates are journalists and people in the category of "if I had an iPhone."
Who were the early iPhone buyers? Most of them probably were not on a limited budget and were quite willing to pony up the money. The rebate is just gravy.
This rebate thing is just a tempest in an iKettle.
The FAQ says nothing about iTunes cards - just the electronic iTunes Gift cards. I used to work at a retail store and people used Apple Store gift cards to purchase iTunes cards in the store all the time. I can't see how this credit would be any different. Just walk into your local Apple Store and purchase a $100 iTunes card, activate it and you're good to go.
People need to quit their whining. Apple doesn't allow you to buy gift cards (for iTunes or Apple Store purchases) because of different accounting rules that apply to such items. Customers are already incredibly lucky that Apple is offering a rebate of any sort. They should be very grateful to receive any form of compensation for their "trouble".
Come on - were you hurting for material for a column. I was an early buyer and I'm happy I was. I used my credit to get a Bluetooth headset for my daughter.
Don't count me as irked, irritated, or pissed off, I'm far from it.
What gets me is you are as clueless as I am as to how many are pissed.
Did you do a survey, a poll or did you just read the blogs on the internet.
You do remember reading about "dog bites man, man bites dog"
Tivogirl: Here's the line from the FAQ about iTunes:
What products can I purchase using an Apple Store credit code?
You can purchase just about anything sold by Apple, except another Apple Store Gift Card or an iTunes electronic Gift Certificate.
Pissed??? Irked???? What are you talking about? I got my rebate today in what took all of 20 seconds. It was great and now my wife and I are going to the store to buy her the new Nano. We are extremely HAPPY to be getting anything at all. If this were a Microsoft rebate we would have to wait 6-12 weeks after being told we need to cut a UPC from the original box and mail it in.
This was like getting an email that said, print out this email and you now have a hundred smackers. Enjoy.
Where in the world do you find your sources? Are you just making this crap up? Do you know anyone that actually bought an iPhone?
Exactly... an "iTunes electronic Gift Certificate" is NOT an iTunes card like those you purchase in a store. It's an electronic credit that is delivered via email to the receipient. You CAN buy a traditional iTunes card online or in the store with this credit or an Apple Store gift card. You can't go directly from rebate to iTunes due to the accounting issues mentioned above, but you can take the extra step to buy a card and activate it. You just have to buy a physical card.
Unfortunately Jobs is not the only one saying it's okay -- THE WHOLE REST OF THE MARKETPLACE DOES TOO. But go on whining brainlessly, it's quite entertaining.
I believe that tivogirl is correct. There is an iTunes Gift Certificate and an iTunes Gift Card. Nothing in Apple's FAQ says anything that should prevent you from buying a Gift Card/s for any amount.
I don't see that as a big deal, especially since the holidays are appproaching. Secondly why are all you whiney arses making a big deal about this. It happens to cameras, stereos, clothing, other cell phones mufacturers, but when it's apple you measure them by a different metric. Come on and grow up and learn what business is about.
Sorry, but I'm a perfectly happy early iPhone buyer (27th in line at my AT&T store on the first day).
Got my rebate today and put it toward a new wireless keyboard and mouse. Happy as a clam!
You really have to dig deep to find some anger in this deal. I was happy paying $599, and I'm ecstatic that I'm getting new equipment $100 cheaper than I had expected.
Thanks, Apple, you're number one in my book.
I paid $500 for an iPhone, it has outperformed my expectations.
No one owes me a rebate, although I'll collect it.
What an amazing claim, that if a price reduction is big enough and quick enough, it must be extended to an extra million people. I wonder if your own business practices show such largesse.
"If the 8 gigabyte iPhone was really only worth $399 to begin with why wasn't that the price begin with?"
Possibly because, before Apple knew how fast the iPhone would sell, they were keeping high margins to cover the undoubtedly high up-front development costs for this totally new device. Once they had clear indications that they had a strong-selling product in the field (my theory continues), they could afford to give up the margins and rely on volume to cover the expenses.
If I'm right, it still means that Apple was willing to assess high margins on (we) early adopters to minimize their own exposure to loss, and that they were willing to wait until those same early adopters screamed in pain to make it right.
But at the end of the day, we have a $100 credit. It is somewhat constrained, but credits like this often are in retailing. I can live with it.
I am sick of the whiners who keep complaining about people being whiners. Since when is being unhappy with a company and voicing your unhappiness "whining"? If you're unhappy with a company's services or product voicing your disapproval is being called being a good consumer. It's the smart thing to do.
Customers were taken aback when the price dropped so far so fast. Apple took advantage of the goodwill they have built up with their customers over the years and people didn't like it. And the whole electronics drop in price argument hold no water here. Apple TV came out in March at $299 and it's still $299. The iPod has been $249 for a long time and before that all price cuts were incremental. No one is expecting MacBooks to be 1/3 less any time soon. This is the first time Apple ever dropped the price on a brand new product that I know of. They would have much smarter to drop the price $100 pre-launch and then sell the 8 gig for the 4 gig price later. They'd have had no complaints and would have sold more phones.
Apple pulled a bonehead move by making their most faithful customers feel like chumps. A lot of your early adopters will be much less likely to be at the front of the line in the future. They will not act as Apple's best salesmen spreading their love for all things Apple. They will spend less money. The cache Apple products hold in the market has lost some of it's shine. If Apple had it to do over they would in no way do the same thing. And that shows they are a smart company that learns from their mistakes.
Sort of. I bought something with my $100 credit that I was already going to buy. And I won't be buying a new iPod until the price takes a 1/3 drop in a couple of months. You see, Apple aren't the only ones who learn from their mistakes.
So if you buy a car and shortly after that the car company comes out with rebates/special financing does that make you equally upset?
http://en.wikipedia.org/wiki/Parable_of_the_Workers_in_the_Vineyard
If there is one thing I'm hating more than the iPhone owner whining, it's all the whining done by those that don't even own an iPhone.
I have an iPhone and I knew going in that the price would drop...eventually. I was surprised when it dropped less than 3 weeks after I purchased my phone but I wasn't angry. That's the risk you take. The fact that Apple opted to do anything was, to me, a bonus.
As for using the credit to buy iTunes - no luck. The Apple page says "Customers may not redeem their store credits: (1) at any iTunes Store in the United States or elsewhere". Since there are no brick and mortar iTunes stores this would indicate that you can't purchase iTunes music - probably because of accounting practices.
I first thought that steve made a terrible business decision that would tick off the most loyal apple fans (wait in line overnight for a phone?!?) but steve is smarter-- he knew that the fans wouldn't care (they just wanted to show their loyalty), and the rebate was merely a 'gesture'. Basically-- a price drop so significant and so soon would rattle the rational consumer-- but not an apple consumer. Just based on these comments, I swear you guys would buy steve's poop in a box if it had an apple logo on it.
I think Steve Jobs is gutless for giving ANY sort of rebate. The people who spent $600 for an iPhone got what they paid for, namely, the "status" of owning one the moment it came out; the technology took second place. Just bagging an iPhone earned bragging rights. Let's face it, nobody really NEEDS a $600 phone!
The really funny part of this is that some of these phones were sold on auction sites for much more than $600. Tell me those buyers didn't have an incredible need to be perceived by their friends as early adopters on the "cutting edge"
of technogadgeters.
My pricing plan would have increased the iPhone's retail price to $799, with a $100 "upgrade" discount for existing owners.
Get real!
Those who bought the iPhone at the launch price will get the last laugh. There are less than 1 million in circulation and the $100 credit issued by Apple is the best proof of a given iPhone being among those first adopters. Years later, these special iPhones bought at the launch price will be the most hot pursued collectibles as those symbolizes people who witnessed the new wave of mobile communication revolution that we only have glimpse today. And yes these iPhones will cost more to be bought away from their original owners.
Many traditional apple fans are the ones who have sold thier soul to Apple and they can not see that Apple can do anything wrong. They need to understand that with its aim of selling millions of iphones apple is moving to a newer and wider audience. This is not the same as iPod buyers. These new customers do not have blind loyalty to apple and so get used to your favorite company being held accountable.
Apple does not want us to use the credit for iTunes as its margins there are so low. It will rather have us spend the moeny towards a higher ticket, high margin product like iPods and iMacs. Also people might take months to exhuast 100 dollar credit on iTunes. Most iPod owners do not buy songs from iTunes.
Anyway I will give Apple credit where it is due, its rebate claim process was really cool.
"Changing the price after only two months bugs me. I'm sorry but it does. "
Excuse me, isn't this businessweek.com, a business website? If you write for a business website, I'd think you should know a little bit about business and marketing. Even I learned last semester in my intro to marketing class about pricing technology items very high initially to get money from early adopters to help pay for the research cost and prevent early shortages among other things. Then once the early adopters have purchased the product, you lower the price to make it more available to non-early adopters. Straight out of the textbook. You might also want to learn about the supply and demand curve. Nobody was forced to buy a $600 iPhone, it was purely a voluntary thing.
Wow, I think every poster here works for Apple. Consider me one of the irked and irratated early purchasers of iphone. Actually it is more like outragously infuriated. I love the iphone, but such price drop is unprecedented in electronics. Everyone claims it happens all the time but no one cites a specific example. BS. It is a disgrace, apple is hurting and backtracking. Notice how no one is talking about all the new ipods? To those who think that Jobs knows what he is doing all the time, could you imagine a worse PR Nightmere?
Count 1 iphone lost for Apple. I was going to buy my wife one for her upcoming birthday in a couple weeks. Now there is no way I will buy another iphone. Maybe once they reduce the price to $100. How long, 1 month?
dude, you are seriously stretching it. This article is weak in trying to make your point. Since when does any company use "fairness" in pricing anything? It's all about profit. That being said, Apple is more fair with its customers thanalmost anyone. The $100 rebate proves it. And for the life of me, a class action lawsuit?! Seriously?! I think you'd have to prove willfull intent to defraud for there to be a case, not simply a holiday price cut.
Just ordered two ITunes gift cards from the Apple online store (free shipping) with my credit. I guess Apple could cancel the order, but so far, so good.
You seem to be going out of your way to make it seem like every iPhone user is still upset or not satisfied with the rebate. Personally I'm very happy and I think everybody who replied to your blog are too. I think you, and the rest of the press, need to move along, there's nothing to see here.
I received my iPhone as a birthday present from my partner and his family. I wasn't ticked that I received it in late August, only to have the price drop. In fact, we happily went into the Apple Store to get him a Nano. Anyone who's ticked needs a little patience. After all...it's only a phone...
This is just another example of bloggers and the media in the general trying to squeeze every last drop of sensationalism even when there is none to be had.
I am irked because I chose to support the iphone when it was early in release in July 14th. So Apple shows their appreciation of my support by not offering rebate to those who said we will take the chance with the "bugs" well thanks alot Apple for being fair- up yours
I don't own iPhone, but I know perfectly well why this happened and there is nothing bad or fradulent in it. And it is very simple. When Apple launched the iPhones they couldn't be absolutely sure this gadget will be a success and how many units will be sold. Less manufactured and sold = greater price. More units manufactured and sold = lesser price.
Hi, I saw this referenced on http://www.subliminalmessages.com and, I'm glad I did because I disagree with you wholeheartedly.
Specifically, I think you guys are being crybabies. Why, oh why, does Apple have nay obligation whatsoever to give you back ANYTHING?
Apple charged a premium to suckers who had to be the first nerds on the block. To the buyers, it was worth it. Ok, now the price dropped. Big deal.
Hot model cars always sell above the sticker price when they first come out. It's just part of the game. You want to get the head turning lookers, you need to pay up. Duh, of course the price will drop in a few weeks! Why is this any different?
Stop crying and enjoy your incredible phones.
What a joke! Everyone wants to throw stones at Apple. Why? Because they *reduced* the price of an outstanding product? Listen I was one of those who had to have one the first day they came out. Did I want to stand in line all day? No. Did I think $600 was cheap? No. But I stood in line, and I forked over the $600. Why? Because I wanted the damn phone. Did Apple ever imply that they would never reduce the price? No. I knew full well that someday some lucky S.O.B. would be able to buy a 3G 160 gig iPhone for less than I paid for a 1.5G 8 gig iPhone. That's the way it goes. I paid too much for a phone that still has room for improvement. But the bottom line is that I (and everyone else who bought one) knew that's what we're doing. AND it's still a great phone as-is and I love it, and I'm glad I bought it when I did. If you have a problem over-paying for bleeding edge technology then you should have bought a Windows Mobile phone, and left the iPhone to those of us who like it out here on the edge.
The restriction on iTunes and gift cards is in the terms and conditions not in the FAQ.
SOMEBODY CALL THE WAAAAAAAAAHMBULANCE.
Seriously, this is the joy of early adopting. Price cuts, bugs, etc are all part of the game.
The people that bought iphones 15 days before the price cut are lucky to be getting anything at all. It's nice to see not all of them a crying a river about it, just whining journalists.
I have to agree with most of the other commenters: I was simply delighted with the rebate coupon! And Apple made obtaining it absolutely effortless. I used the coupon the same day to reduce the price of the iPod ITouch I bought my daughter.
Steve Jobs knew that die-hard Apple fans will forgive anything. There is a level of brand-loyalty surrounding Apple that borders on complete obsession - They were happy to shell out that much money for an iPhone, so being forced to buy more Apple stuff probably hasn't phased most of them.
I read an editorial somewhere that Apple was the new Microsoft - which pretty much summed up my sentiments these days.
we aren't just whining because its apple people whine because it is 600 dollars.
I am an early Iphone buyer and love my device more every day. I am glad that Apple is providing a rebate but have gotten so much productivity and enjoyment from having it that I wouldn't care if there were no refund. It must be hard making a living by trying to get folks stirred up over nothing.
Well, my budget was limited, but I really wanted an iPhone. So I got the 8GB first day. I had some trouble with the touchscreen and had a replacement sent to me. Maybe I'm just a fanboy, but I'm happy to use my gift certificate at the Store.
I purchased an iPhone as a gift to my friend. HE will receive the credit and he can't transfer it back to me - nice "job" Apple!
Count me in as a cranky customer over this whole debacle. The "that's technology" is a totally lame and unrelated excuse. Exactly what technology was changed or improved? Did they add a useable speakerphone?!
This was a spectacular blunder or an ego move - as in Jobs claimed that 1 million iPhones would sell by the end of the quarter and rather than be wrong he found a way to be right while pissing off his most loyal customers.
Really, who bought an Iphone between June 29th and September 5th - people who LOVE Apple products or average consumers?!
I WAS a person that loved Apple products and service. Now I will wait for the price drop - hey, "that's technology"!
The market value of an item or service is determined by what someone else is willing to pay for it. Apple should have started at $1500 and just dropped the price a little each week. Anyone who bought it for 6 and is now whining about the drop is a dumbass. That's the price of being on the bleeding edge of trend whoring. You get what you pay for.
I was one of the early adopters and also a true Apple supporter from the very beginning --- and I'm not pissed or irked. I think what Steve Jobs did was more than generous. I stood in line at an AT&T Store and when a salesperson walked up to the 5th person behind me and said they would be out of iPhones when they get to that point, I turned to that person and said "consider yourself lucky, in 2 months you will probably be able to get the 8 gig phone for half what you would pay today..."
I bought a 4GB iPhone in July and I feel ripped off with or without the $100 "store credit" and a discontinued iPhone. My iPhone is obsolete in less than 3 months! I feel like an idiot and yes, I am pissed.
If you actually had an I Phone you would not have written this article. I bought mine about three weeks after it came out, and it has changed my life. It is the first Apple product I have ever bought, and this is after having every model Blackberry as well as every other cell phone. Blackberry blew every other phone away, and the I Phone is only about 100 times better than the Blackberry in every way. The operating system is so simple, the phone works great and you have 50
one touch numbers, visable voice mail, a list of recent calls with missed calls in red, as well as the best sounding phone with the I Phone headphones, the e mail program is great, the web access is unbelievable, the camera is fine, and you have an I pod as well. So you don't need an I pod($250), and you don't need a camera($250). I appreciate the $100 gift certificate that took 30 seconds to download-I have NEVER seen any company give a refund that was so easy-they usually make it so hard that most people give up. You should just buy an I phone and you will realize how amazing it is that Apple's first phone is so much better than anything else out there. They lowered the price to expand their market share, but the I Phone is worth every bit of the $599 price and probably more.
For those who never paid attention to the cell phone market before Apple entered it a couple of months ago: the price change thing happens all the time. The Motorola RAZR came out at $499, sold 750,000 units in the first six months. Once Moto saw they had a hit on their hands, they dropped the price to $199. Today, it's less than that. Free even, if you can find the right deal. Motorola did not offer an apology, or a store credit of any kind. Same thing with my Nokia E62. I paid $399 for it, and a few months later, a friend of mine got one for free. Apple gets tarred and feathered by some no matter what they do. They recoup their R&D costs, possibly negotiate better long-term deals with suppliers, and drop the price to gain marketshare. Now they are evil. They offer a store credit to take some of the pain away, and they get slammed for that. They just can't win.
I bought one on the first day at $599. I just got my code for the credit. I'm fine with that. Heck, I would have been okay without it. Sure, I wish I paid less, but that's the early-adopter tax. If you want to cool new toy on the first day, you're going to pay the most, and have the most problems with it. If that bothers you, don't buy any product the first few months it's on the market.
I bought a car three months ago. If I had waited until last week I could have gotten a $1,500 rebate on the exact same model.
Am I pissed? No.
A little annoyed? Sure, but that's life.
In the technology world you should expect this kind of thing to happen even more often. That's the business.
Personally I think the iPhone is a steal, even at $600. Look what that buys you in a Symbian or Windows Mobile world. Not much.
Should have given more time for the rebate
Nov 30 2007 will come qiuck.
Also should have let you use the rebate for a battery replacement.
The people I know seem to have had exactly the opposite reaction to the rebate -- far from being "piss[ed] off" (very classy, Business Week), they thought it was a great move. And yes, I know someone who spent the rebate (in part) on music from iTunes. Of course, I'm not suggesting that my hearsay anecdotes are worth any more than this author's hearsay anecdotes, but something doesn't quite track here....
Are you kidding me? If these folks are willing to wait for 3 days outside an Apple store to be able to boast about being the first on their block to have an iPhone, they can deal with the $200 price cut. What was it worth to them to be able to show off the phone, brag about having it, and bask in the glory of being an early adopter? They didn't care about the price then, why should they care about the price now? Any complaining from early iPhone purchasers is simply petty whining. It couldn't be buyer's remorse, could it?
It's obvious what happened: Apple didn't know how successful the iPhone was really going to be, and so they priced it initially based on what turned out to be overly pessimistic assumptions. Then, after it was successful -- far beyond expectations -- they were able to reduce the price quite dramatically.
Not just a majority, not even a supermajority, but EVERY SINGLE comment to this column has been positive towards Apple. Think about it: one million iPhones times $100 in rebates equals $100 million. That's not chump change by any standard. The fact that it was a result of the CEO responding to customer feedback makes it even more remarkable in this day and age of nearly limitless corporate greed.
[Now if Apple would only answer my prayers and release OSX for PCs...]
I personally don't know one individual who has an iPhone who is dissatisfied with it. I paid full freight for mine because it sounded worth it. It still acts and looks worth it after a couple months of using it. What's not to like? To me, the credit was a bad idea but that's why Steve is running Apple and I'm just buying the toys.
Just used the $100 rebate to purchase two $50 iTunes gift cards through the online Apple Store. No problem.
Come on people...be real!
I could have bought an iPhone the first month also but I knew upgrades were coming and prices would be dropping...so I waited!
What? Are these same whiners going to want free upgrades also, but because they wanted the kewl factor, they bought early.
If I had waited, I could have had a better MacBook for the same price also...
what about using the $100 store credit for clearance or refurbished items?
Not end well; what are you talking about? First, I think everyone who buys technology knows that if you buy early, within a matter of months you are going to to get something better, faster, bigger, whatever for less that what you paid for what you just bought. When is the last time you saw Sony, JVC, Motorola, Microsoft, or anyone offer a rebate because they lowered the price on a product? In terms of ease of getting this rebate, I echo the comments of others. The entire process took me less than 5 minutes. Compare this to cell phone rebates offered in the stores - Receipt, UPC Code, Form, left arm, mailed in with a rebate to arrive in 60 to 120 days. I've just started using Apple products recently and continue to be incredibly impressed by the company. I think this article is typical press-mongering to create negative hype around a company. It is precisely for reasons like this rebate that Apple has such a loyal customer base!
I love my iPhone. I paid $600 for it the day it was released after sitting in line for 4 hours. Hey, and now I have $100 credit to spend on more cool Apple stuff. Now if Microsoft would come to their senses, lower the price for Office 2007 and give everyone who spent $500 for it a $100 rebate, that would be a news story!
I tried million times on apple website to get credit but i never get it ! each time I mail the apple regarding this , they give me the same response to try again. so I think the credit isn’t really worth it .
Apparently, this columnist is not an economist. Labor theory of pricing was fine and dandy during David Ricardo's and Marx's time, but it has been debunked for quite a while. The phone is not worth $399 because it took $399 worth of material and labor. It is priced at whatever amount people are willing to pay for it.
The people who are whining about the price drop need to grow up. And the people who are whining about restrictions on a rebate should too. You should be glad you even got a rebate. Did Microsoft give rebates to all the people who bought WebTV after that went dead?
What about the Newton? Millions bought CRTs that don't do digital. Should they get rebates for new HDTVs?
And why should Apple price their products more carefully and miss on the opportunity to make extra money? The way I see it, I think they did price it carefully and got millions who truly valued the phone at $600 to come in. And now that they have an extra $100, Apple just got a few extra hundred thousand repeat customers for more of their products.
The way I see it, I took my $800 from the 8 iPhones I purchased and I gladly bought my parents a new computer. And it was all a gift from Apple. Thanks Apple.
tivogirl is indeed correct. I know at least one person who has already used his $100 refund to purchase a $25 iTunes Store gift card through the Apple Store (I think he even made the purchase through the online store). And I, too, used to work at an Apple Retail store. I can personally guarantee you any retail store employee (even the ASMs) will gladly sell you an iTMS gift card with your iPhone credit. Because technically, as far as the bean-counters are concerned, you ARE buying a retail product (and its associated part number). It just happens to be an in-road to the iTMS.
By the by, if you'd bothered to be a true journalist, you'd have learned this. Carl Bernstien, you ain't.
I got an iPhone 6/29, so I was admittedly ticked when then price cut was announced; however I'm mature enough to have realized what was going on and am pleased to be getting another $100 worth of Apple merchandise. My biggest dilemma now is whether or not to save it for Leopard. You have to admit that if Jobs & Co. had this all planned out as some suspect, it was pretty ingenious. If I'm being fleeced by anyone, it might as well be one of the best marketing & software teams there is these days.
Why don't people complain that a Blackberry costs $500+. You may get it for less with a 2 year contract that states you must pay $40-50 per month for Blackberry services on top of the calling plan. With the Iphone the data plan with real internet and more is only $20 a month so after 2 years Iphone users are actually paying less. Do the math.
I've been an Apple customer since I started using computers - a very long time ago, in some standards.
Arik, I agree with you. Apple has a certain pinache in being able to retain loyalty whilst pissingly irritating and irking clients.
They have learned little from their superiorist faceplant of the late eighties; one can only hope Mr. Jobs' about face (rebate) is indicative of a more lucid acknowlegment that Apple's success depends on its customers...
Senseless article with no merit! The people complaining have obviously never before bought cutting-edge technology. Get a life, and stop worrying about how I spend my money.
I gladly paid $600 for my iPhone. It was worth the price and I'm glad I purchased the phone. I didn't expect a refund of any money; getting $100 back is an unexpected bonus. Lowering the price does not mean the phone is worth any less. It simply means that Apple is now able to increase production and the value of selling more units at a lower cost is more valuable than selling less units at a higher cost. The advertising value of this tempest in a teapot is incredible too. Any buyer or reporter upset with Apple for lowering the price is stupid and doesn't deserve any worthwhile tools or toys.
if Apple does anything you guys get to keep writing..that is the essence of your job isn't it? make a big deal out of anything and create a column about it...
Personally, the IPHONE is GREAT! and the fact that i get $100 back after getting it before all my friends had it and made them drool...
Well, it sits well with me!!
i am now purchasing another Nano b/c i want to !! And that is why i bought the phone, but also b/c my RAZOR sucked!!
just for your info..it syncs with my car beautifully, my pc & it makes me happy when the songs i choose to assign to someone ring & let me know exactly who is calling!!
No Problems, No Complaints, NO whinning
Apple rules, get used to it.
John G (9/15 10:15 AM): (If a month ago a second iPhone was worth $599 to you, how is it not worth the $249 it would cost you now (refurbished 8GB = $349 - $100 store credit)?
That seems like a strange thing to be angry about.
Zoe (9/15 10:53 PM): Why not sell your 4GB phone and use your store credit to get an 8GB? You could probably find someone willing to pay $250 for it, since they're going for $299 at the Apple store.
A landowner went out early in the morning to hire men to work in his vineyard. He agreed to pay them a denarius for the day and sent them into his vineyard. About the third hour he went out and saw others standing in the marketplace doing nothing. He told them, 'You also go and work in my vineyard, and I will pay you whatever is right.' So they went.
He went out again about the sixth hour and the ninth hour and did the same thing. About the eleventh hour he went out and found still others standing around. He asked them, 'Why have you been standing here all day long doing nothing?'
'Because no one has hired us,' they answered. He said to them, 'You also go and work in my vineyard.'
When evening came, the owner of the vineyard said to his foreman, 'Call the workers and pay them their wages, beginning with the last ones hired and going on to the first.'
The workers who were hired about the eleventh hour came and each received a denarius. So when those came who were hired first, they expected to receive more. But each one of them also received a denarius. When they received it, they began to grumble against the landowner. 'These men who were hired last worked only one hour,' they said, 'and you have made them equal to us who have borne the burden of the work and the heat of the day.'
But he answered one of them, 'Friend, I am not being unfair to you. Didn't you agree to work for a denarius? Take your pay and go.
iTurd for sale, $14,999 or best offer.
Just wait until the author finds out that cars can cost hundreds or occassionally thousands of dollars less if you are willing to wait a few months.
It has never been part of Apple's policy to drop the price of their products. They have always issued upgrades in lieu of dropping prices. That is the major reason people were so surprised by the move and upset. Had more people known, that Apple would change the strategy they have been using for years, they would have probably been more inclined to wait until the price dropped. I had an Iphone and loved it though I did find things that disappointed me. Overall, I determined that the phone compared to others had no features that made it worth $600. It is a much, more attractive buy at $400.
On another note, some companies like Best Buy offer price adjustments months after you have purchased products like HDTV's to not upset their customers. Why won't you fanboys admit what even Steve Jobs realized? He screwed up.
I phone rebate does not work if you have changed number since purchase. Apple store employee had no answer for me.
I've got to agree with Steve. Besides the newest tech items always having a premium price initially, Apple probably used the higher price to help control demand. Possibly they were trying to prevent shortages during the initial rollout? Maybe there had been more production delays than Steve Jobs was willing to admit, and the high initial price was simply to buy more time for supply to increase to match demand? Who knows?
One thing's for sure, I don't feel angry or irked that somebody else is getting a rebate. I'm sorry that you do.
It's all planned ahead as part of marketing gimmicks to stay in the media spotlights - and we all fell for it.
Cheap tricks, but it works!
And we will continue to advertise for this product, free of charge, will we?
It took me one trip to my Apple store to get my cash refund. No fuss, no muss. I'm happy to advertise their products for free...
My wife and i applied that refund to a new Mac. Our Toshiba, and 2 Dells are headed for a trash bin. Inferior PC "technology" is now out of our household.
--A happy PC-to-Mac convert
After all these years and all the words you have herded, I would think you would know better than to say anything bad about Apple. It's like using religious figures in political cartoons. When the Apple fanboy base gets riled, duck and run. It's a paean to Job's ability to keep his cult followers walking in lockstep. Of course, this has no bearing that despite the iPhone being a great hand-held, it still is an inferior telephone. And that, of course, should get 'em started.
A blog on the daily doings of Apple and the many companies in its orbit, with insight and analysis by two longtime Apple-watchers BusinessWeek Senior Writer Peter Burrows and BusinessWeek.com Senior Technology Writer Arik Hesseldahl.
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