September 7th, 2007
Apple offers $100 iPology after angry messages flood iPhone forums
By Michael Santo
Executive Editor, RealTechNews
If nothing else, Apple is a whiz at PR and responds (generally) to customer complaints. In an open letter posted today, Steve Jobs addressed the anger early adopters of the iPhone have felt since yesterday’s 33% price drop.
I have received hundreds of emails from iPhone customers who are upset about Apple dropping the price of iPhone by $200 two months after it went on sale. After reading every one of these emails, I have some observations and conclusions.
First, I am sure that we are making the correct decision to lower the price of the 8GB iPhone from $599 to $399, and that now is the right time to do it.
Second, being in technology for 30+ years I can attest to the fact that the technology road is bumpy. There is always change and improvement, and there is always someone who bought a product before a particular cutoff date and misses the new price or the new operating system or the new whatever. [While I agree with this, 33%? No one could have expected that after only two months. See below for more thoughts.]
Third, even though we are making the right decision to lower the price of iPhone, and even though the technology road is bumpy, we need to do a better job taking care of our early iPhone customers as we aggressively go after new ones with a lower price.
Therefore, we have decided to offer every iPhone customer who purchased an iPhone from either Apple or AT&T, and who is not receiving a rebate or any other consideration, a $100 store credit towards the purchase of any product at an Apple Retail Store or the Apple Online Store. Source: Apple
We Say: Nicely done, Apple. This will go a long way toward customer satisfaction - and loyalty - and will make all the early adopters much happier, while leaving other device manufacturers still quaking in their boots.
Jon Newman says:
Come on! It’s a $100 credit that you can only use at an Apple store. So, since there is very little you can get there for $100 dollars you have to give even more money to Apple just to get your credit? Only someone with Apple blinders on would see that as a good thing.
September 7th, 2007 at 3:04 am
Stephen Roberts says:
The people who qualify for the rebate are the early adopters. Its not like they wont be buying lots more Apple products.
To them $100 store credit is about the same as cash.
September 7th, 2007 at 5:12 am
Michael Santo says:
Hey, Jon, if you read my earlier posts you know I’m no fanboy. This is more applause for a great PR move — and it will likely mollify many early adopters.
September 7th, 2007 at 6:16 am
John says:
Well, until people stop BUYING their products, you can complain all you want. It matters not! They threw out a bone and people took it. I learned my lesson years ago with the Apple IIc. LOL.
September 7th, 2007 at 9:49 am
JohnnyL says:
Jobs must be laughing his ass off at being lauded for a good PR move. Even he realizes he is still overcharging for the iphone.
Figure it this way. He can offer basically the same thing minus the phone and camera for $299. The $100 credit means you still payed $200 for the phone and camera capability. Even the new $399 price for the iphone means you are paying $100 for the phone and camera…grossly overpriced. The iphone should be priced at about $350 tops.
September 7th, 2007 at 11:54 am
iPhone - What’s wrong with a discount? | Geeks and Technology - Linux Windows Unix system and Making money online says:
[…] It was kind of alarming to see the backlash of iPhone customers against Apple, who dropped their price for the new iPhone by one-third yesterday. But wait a minute, why are people mad about that? Because they bought before the price drop, so now they claim they were cheated. […]
September 7th, 2007 at 12:17 pm
G.Praveen says:
Well, whomsoever is complaining about the strategy is unfair and merely reflecting emotions than business sense. Have you ever heard of a company making losses to satisfy its customers. Even if they do, they dont do it because they care about you or me but because they care about the perception about them as a business. Thats the truth. So if Jobs has a stratregy in this move, we must appreciate him for running business smartly.
September 7th, 2007 at 1:53 pm
Mike says:
I paid more for my computer parts 2 months ago then they are now, can I get a refund too?
If you were an early adopter of the iPhone, tough luck! It was not a device you HAD to have nor needed to continue your survival. I think Jobs made a HUGE mistake by caving in and giving $100 credits! You got it first, you wanted it first, you paid the price you KNEW you were going to have to pay, now you come around whining like school girls about it - BLAH.
Mike
I paid to much for that half eaten turkey that is now on sale - I want a refund on that too.
DUH
September 8th, 2007 at 3:05 am
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May 10th, 2008 at 1:37 am