I got my iPhone opening weekend like alot of you, and while I am not thrilled with the price reduction, everyone needs to relax a little here...

Notice that the NEW iPhone comes with less accessories than the Original one.

No Dock, No charger, but you do get a new "stand"...

Lets call this $100 less in accessories and a $100 price reduction...

You're telling me you actually own an Apple product, testudo???!!!!!111

Look, there is something of a problem when a company releases a product at one price point and then almost immediately offers a drastic price drop, because then the consumer *knows* that they have "been taken." I bet if Apple had dropped the price $100 people wouldn't be upset. It is more a public-relations nightmare than anything else. Apple should have seen this reaction and acted accordingly, perhaps by dropping the price $100 today and then another $100 in a few more months. This huge price drop was a bad decision and will lead to tremendous "bad blood" towards Apple, which they definitely don't need. In the end, I think they better eat the cost and refund everyone the difference or risk losing many potential future sales.

And boy am I glad I didn't buy one yet! Ouch!

I bought a BlackBerry 7290 for $399 WITH a 2 year contract. About 6 weeks later, the same model was being offered for $99 (after a $300 service credit). My service provider pretty much told me to go s**** myself. Welcome to the highly competitive cell phone market people. Get used to it.

Yeah, Apple did a major drop on the price, one so large it's kinda surprised everyone, but everyone knew the intro price was high. I was certainly aware that Apple was going to drop the price (not this much this soon). It makes sense, this product was/is huge and like any company, they maximize on this new product at intro (like they have always done). I'm sure this can also be related directly to a supply and demand issue as well, since the introduction of the iPhone they have ramped up production and have a similar product - iPod touch - which I'm sure shares many of the same components; they can produce these cheaper now. Plus, since it seems people keep getting surprised, don't be when Apple releases an updated iPhone model with 3g and 16 or 32 GB capacity.

Apple made a big mistake announcing the huge price cut and termination of the 4GB on the same day as a major product refresh. It should have been done last week. It also showed the world that 1 million sales by the end of this month was a joke.

I remember when the PSP was released. I saw it everywhere. The iphone i have yet to see in the wild

I can understand why Jobs thought that the large number of early adopters that helped make his options worth even more would cheer.

I cannot understand why he or other apologists for Apple's near unprecedented 2 month price cut would cheer either?

This sets a bad precedence.

Just wait if the rumors of a g3 iphone for Europe become true and see the anti Apple sites multiply.

As many people are now entertaining the idea of switching to Apple OS this was a stupid move.

Jobs proved his contempt for Apple core base by doing this today. a 16GB iphone will be on sale before xmas anyone buying an 8gb today is a fool.

However I plan to buy a macPro at the end of the year assuming a product refresh.

I don't see a problem with the price drop. It is an answer to all the whining would-be customers who thought the device was too expensive. Apple also makes money from ATT that can offset the price some more. I think this is a brilliant move by Apple, holidays are nearing.

All companies start pricing on new devices extra high to cover development costs. The ones that don't justify it 2 ways

1. cheaper parts, so the device fails within the 1st year 2. they eat the costs in hope that they can own that market & eventually monopolize it (Microsoft)

The people who have money to burn buy it first & make it a success. The rest of us wait till it is in our price range & then keep that success going.

If I had the money it would be worth the $200 to me to know I helped Apple continue to innovate, I'm tired of living in a Microsoft world.

Those spouting off their discontent are either the usual disgruntled morons, too lazy to do their homework, or the usual self-styled victims, seeking the usual attention. I'd just ignore them, and thankfully, by and large, that's happening anyway (except for MacNN editors with an axe to grind, judging by the inflamatory tone, and mostly misinformative content of this article.

I had ordered two 4gb phones from the Apple refurb store last August around the 25th, I also had just ordered two 8gb phones from the refurb store as recently as last week. Today, after the announcements, I called Apple Customer Service, and inquired about a price protection refund on these purchases. ALL of them were covered under Apple Price protection, and I received a $650 refund, making the 4gb iPhones $299, and the 8gb iPhones $349.

I am very satisfied.

I also called several clients of mine that recently bought iPhones from AT&T stores - while initially the stores refused a refund, once the store managers returned from their briefing (about the new price), *ALL* of my clients were given immediate refunds for the $200 difference.

Of course, it took me doing my home work, calling the proper customer service, and inquiring about my standing to receive my fefund. Of course, just sitting in a corner and bitching about how terrible Apple is would have been easier.

Then again, I do get asked how I, as an early adopter, feel about this price drop - easy: Ecstatic that more people will be able to afford an iPhone.

Warning to everyone, though - Apple is very explicit that the $399 will hold ONLY OVER THE HOLIDAYS. ("8GB iPhone priced at $399 for this holiday season"). Make no mistake about it, come early next year, or after Christmas, Apple will release a 2ndGen iPhone, which will be priced at $499 and $599, in two separate RAM configurations, again - 8gb and 16gb).

being first! How could anyone think this wasn't coming when they got it out of the chute? What are you going to say when new iPhones come out that use a faster network than Edge and your iPhone is now 'old?' Maybe everyone should just wait until then? Or better yet, wait for the third generation beyond that. In the meantime... use a Razr or Treo or LG? (i.e. stop your bellyaching!)

Anyone know how much the original price was driven by the memory shortage crisis?

You mean apple drops prices and introduces new models at short intervals? How could we have known this? Who has seen the iPod Micro SNL skit?

If you are foolish enough to put up with AT&T, you'll weather this storm as well.

...this is why I quit customer service.

No matter what the situation, there are always whiners who complain about how horribly they've been victimized when a company *gasp* has the audacity to lower a price. Because, you remember, Apple forced these people to fork over $599 at gunpoint.

To quote Denis Leary: "Life sucks. Get a f*king helmet."

I don't regret buying my iPhone on June 29. I can't live without it now. I haven't used my iPod since I got it.

Prices always go down. That's no surprise.

Look , I know it sucks that the price dropped on Apple's iPhones and a lot of us including me wished we could get our 200 dollars back . But here is the deal , Apple is competing on the winner take all arena of mobile communications in which price flexibility is a major key in getting market share . Apple cannot afford to let the iPhone's price be stagnant for the sake of us beta testers/early adopters against what Nokia , Motorola , Samsung and others have to offer in their new phones which are and will be aggressively priced against the iPhone .

What is worse ,Apple's entry to the mobile communications world would mean that Apple iPhones would be updated at least twice or thrice a year with better feature set and a much larger NAND than the previous versions and would be much more cheaper . If we are complaining with a 200 ( expensive) price drop , wait until generation 3 and the succeeding ones that will follow .

I was FURIOUSLY upset to learn of the $200.00 price drop in the 8GB iPhone today. Apple has been hyping the iPhone since January and pushing the $599.00 price tag. After I forked out my hard earned $640.93 to support the company I have fervently followed for over 20 years, it was a real kick in the teeth to have the price drop in less than 60 days of recieving my phone. I am the IT manager of a fairly decent sized public University. I have always been an Apple advocate and as such spend in excess of $100,000.00 each year with your Company. I am going to tread very lightly in recommending anything you all produce from this point forward as you failed to think of your customers...you all are too consumed with making the mighty buck. Shame on you Apple. This is totally something Microsoft would do.

I am also amazed to find out for those who purchased their iPhone from AT&T Stores or the AT&T online store, that they are recieving $200-$250 credits to their accounts as peace offering. What are YOU going to do to accommodate those of us who purchsased from YOUR online store and are disenfranchised with this incredibly lame pricing decision?

Apple -- Feel free to call me on my now WAY overpriced 8GB iPhone to discuss. I'd be happy to chat.

coming off or is it the incessant whine of crybabies. I ordered mine on June 29, got it the next week and have never looked back!

No early adopted wins, save for the cool factor.

Get over it. How about having to replace or upgrade you "smartphone" and paying $400 for a piece of c*** because it's your IT guy's "standard?"

If you can't afford to be first in line don't buy it... If you spent part of your tuition fees, if you didn't eat for 2 months, if you can't afford books for college because you were first in line... than you don't know where your priorities are. Your the same person that buys a porsche and lives in it too...

the iPhone is a luxury item it's a toy it's not a necessity. If your complaining about $200 bucks you can't afford the phone.

So you Apple fans still accept to get fooled on money by Steive ha. Sorry dudes, I was as protective of Apple as you guys where but finally I understood that I did not understand that Steive did just care for his ego and not his customer.

Glad to see there's some sane folk on the boards- can't believe people would winge about a company lowering prices. You chose to buy the product at the price, you could pay that much at that time, get over it! Sometimes I wonder about some of the folk who whine- adult spoilt brat syndrome! If the company's not doing everything the way I want it then they're pissed off. Grow up!

Hindsight is always 20-20.

What if Apple waited a year before a price drop or before an upgrade. Would all of you whiners seriously have waited a year before buying an iPhone?

The things is you would not have waited. You wanted your iPhone right now. You wanted to be one of the first on the block with the phone. You knew a better, cheaper iPhone would come out some time in the future and took a bet on when it would be released. So it happened earlier than anyone thought.

Too bad, you crapped out. Roll the dice again. Maybe you will have better luck.

Dude,

News Flash—This ain't an Apple Discussion Forum nor is it Apple owned. It is also doubtful that anyone at Apple reads these comments.

So unless you posted a copy of an angry e-mail you sent to Apple/SJ, you are a buffoon to think anyone at Apple is reading this.

If you are so petty to let this cloud your judgement regarding IT decisions for your university, they better hire someone with more than a pre-pubescent maturity level to replace you.

More than anything, I feel like this is damaging Apple's reputation. Say what you will in defense of early adoption and Moore's Law, etc. But this is going to have more serious affects on later products.

Apple will suffer this day over many times with future products. People are going to be very wary about a launch, especially those on the Windows side of the equation.

Just poor PR all around!!

That the pricing move:

1.) Keeps the iPhone at a more competitive price-point with the iPod Touch?

2.) That a new, 16GB version of the iPhone is right around the corner and will come in at $499 to $599?

Naw, no one ever thought of that. No, no, no. All they can think about is how evil Apple and a greedy SJ ripped them off.

...no problem. Giving SOME early adopters compensation and not all: PROBLEM! I don't particularly have an issue with the price drop per se, but if Apple is willing to compensate some early adopters and not ALL OF US, I have issues with that. They know who their early adopters are and they could just send out some kind of coupons for store credit or something. All I'm saying is just keep things fair. If they do it, do it for all of us.

Don't start complaining now after you *HAD* to be one of the first to get an iPhone. If the price wasn't right for you, then you shouldn't have bought the damned thing!

Wipe away your jealousy and your impatience and be happy that others and you will be able to get a new iPhone for less.

I agree I have never seen Apple drop the price that low without adding some features or value to the replacement model. But I did a calculation on my own. I think I have used the iphones web browser to find and dial a phone number at least 300 times since I got mine....what do you think that would cost on any other phone? Using Directory assistance it would be iphone money at least. Also the google maps feature I have used to get around town and found things in other towns while on business trips....that saved me from buying a Nav.... theres another few hundred. An itunes giftcard in the benjy range would be nice!!!!!

Why is everybody complaining? This is normal practice, and always has been. People should know this by know, and take responsibility for their own actions.

All companies charge more for popular new products. There are two main reasons:

1) It is normal practice to charge "what the market wil bear". Lots of people wanted one, and even paid more than the asking price in some cases. Apple could have charged even more.

2) When demand outstrips supply, as a manufacturer, you have to slow demand by increasing the price. If the price had been lower, more people would have wanted one, and then people would complain even more because they couldn't get one.

Although I don't condone the practice, it's entirely normal, and always has been. Stop complaining. You should have known.

This is unconfirmed and speculation, but it just seems to fit.

Apple was desperate. Very desperate.

Now was the time for Apple to submit a new phone device for FCC approval to be able to sell it for Christmas. Rumors of a smaller, cheaper, less-featured iPhone (e.g. "iPhone Nano") have been around for months. Apple announced no such thing yesterday.

I expected for a big Christmas push, price point would be everything. I thought a few people would be saving up for an iPhone this Christmas. So very many others could never or would never spend $600 for any such device, but would go for something priced several hundred dollars less.

My sense of Apple is that they're a fair but (by law) a profit-fixated entity. The NY Times article saying this pricing strategy "had been planned long ago" seems a usurious strategy for a company, unless the plan was the price point, and not the iPhone price.

So Apple has some decisions to make. They already lost a Leopard release date due to the iPhone, per Apple's admissions. And in my speculation they have lost an "iPhone Nano" at a crucial price point. Apple has already lost in the public's eye its aura of greatness, and now is losing the goodwill and support of its best half a million customers.

Personally, I'm used to bleeding edge, early adoption woes. I'm usually ordering stuff I generally need right after the keynotes. For example, with the MacBook Pro, I've watched as various unannounced hardware & manufacturing revs took place, then later a switch to Core 2 Duo and pre-N wireless networking capability. That's the standard rub.

But this price cut is plain mean-spirited, reckless, and nigh punitive. And I still can't see either Apple or Steve Jobs in this light. Unless they were desperate to avoid a completely embarrassing and losing Christmas sales quarter.

My feelings on this sudden price drop: I'm OK with having spent the $600 on June 29. And it's no contradiction that I now feel insulted and abused by Apple. Apple owes me and its other most ardent half-million customers an apology. Even if it was "to save the company" as I speculate above. And if the apology includes Apple Store credit, AT&T billing credit, partial refund, etc., then so much the better.

Seriously, step back and look at yourself- Apple doesn't owe you anything. Do this- think about them as a company. 'At the time' chrisco that you bought the product you were happy with paying the amount it cost. Apple sold it to you at a certain price based on their status as a business and their product/market predictions. Now, those conditions change, and Apple has every right to change their products and pricing to match new predictions and competition. Your negative predictions about Apple are merely sour grapes, and the fact that you have no idea how a capitalist society works is a sad reflection on yourself. If you turned around with evidence that Apple had planned the price drop well before the iPhone went to market your argument might have some relevance but stop being emotional and enjoy your phone! Judge Apple on their support for your already bought product rather than their pricing schedule. Otherwise, find a nice socialist commune somewhere and start smokin away.

My sense of Apple is that they're a fair but (by law) a profit-fixated entity. The NY Times article saying this pricing strategy "had been planned long ago" seems a usurious strategy for a company, unless the plan was the price point, and not the iPhone price.

Right. They had plans for another iPhone for that space, couldn't get it done, so they just decided to reprice the current iPhone and be done with it. And Apple isn't going to announce ANOTHER new phone before its ready for delivery. They could do it with the iPhone because it wasn't going to hurt sales. But if they pre-announced by 3-6 months an iPhone nano, there might be a lot of iPhone sales just put on hold waiting for it. Nothing to be gained there.

Apple has already lost in the public's eye its aura of greatness, and now is losing the goodwill and support of its best half a million customers.

Or its best suckers. Generally, the people who bought early are the mac-faithful. They might go a little blowhard, but they aren't going to actually turn away from Steve.

But this price cut is plain mean-spirited, reckless, and nigh punitive. And I still can't see either Apple or Steve Jobs in this light. Unless they were desperate to avoid a completely embarrassing and losing Christmas sales quarter.

Damn straight it was mean-spirited. I'm betting Al Gore was behind it. Him and Steve and the rest of the board. They probably were sitting in their little room, cackling little a coven of witches, going "Now, let's cut the price! Bwhahahahahaha! That'll teach those b****** early adopters!".

Did it occur to anyone that the iPhone is not selling as well as you all claimed it would be (or maybe Apple hoped)? If sales had dropped to a dribble, what is Apple, a for-profit company, to do? Keep the price alone and live with less-then-stellar sales, just so some people's feelings aren't hurt? Or cut the price so they can sell more, and make more profit (esp. since this leads to more of a reliance on AT&T kickbacks)? I sure all you early adopter people would just be "Keep the price alone. We don't want to make MacNN posters cry, do we?". And by dropping it in September, they can perhaps save their sales numbers for the quarter and not have to admit it was overpriced to begin with.

Be serious. You bought an iPhone because you just HAD to have it. Esp. if you stood in line and got it week 1. It was that status symbol. I'm sure you showed everybody you had one. Doesn't that knowledge in itself worth $200?

Or, looking at it another way, you're the idiots paying $600 for a phone. If that extra $200 is such a big deal now, why wasn't that $600 an even bigger deal? Or are you one of those fools who bought a house you couldn't actually afford, but got a sub-prime mortgage and now is battling to stay afloat?

And if none of that cuts it, just put yourself in Apple's shoes. Let's say

This seems to be an example of gouging. The product is brand, spanking new: no existing pipeline of revisions.

I work in manufacturing and it's difficult to imagine cutting costs to result in a 30% price reduction to consumers so quickly.

The analogies of "general technology" and existing product line's evolution and pricing aren't really relevant.

This will impact the timing of future purchasing decisions for many.

I know it will for me. I am already reconsidering .Mac renewal and will put off purchasing Leopard.

Many of us didn't "stand in line". We walked in and made a purchase like most typical retail transactions (not that this is anything other than a talking point...)

Great.

Pissed at Apple for this so-called 'price fixing' debacle? Vowing to reconsider your future purchase decisions? Marvelous. Do us all a favor and go buy yourself a Dell computer, put Vista on it, and get yourself a Motorola Razor. I'm sure you'll be absolutely thrilled with what you get.

In short: You bought early. You're out 200 bucks. Shut up and get over it. Apple's doing what they need to to sell truckloads of iPhones for the holiday season. Good for them.

Other than, It must have been nice, that you whiners had the disposable $599 laying around when you bought it, heck I don't think I have the $399 now for the current price.

I can't stand this anymore. First these ridiculous law suits about the battery and now this. I mayself am an early adopter of Apple products. I want them the second they are released and I under that there are risks that come with it. That extra $200 was worth getting it right away and enjoying it. I don't regret a damn thing. Price drops are too be expected, ESPECIALLY from Apple. They do it all the time. If $200 means that much to you then you shouldn't be buying a $600 phone you knuckle-head! Shut up and enjoy the greatest device ever created by man. If you don't like it then sell it. So damn annoying!

I'm sorry you guys, but if you thought the price wasn't going to drop and/or the storage space to go up before the holiday season, you were fooling yourself on June 29th. I want an iPhone as much as anyone; I go to my local at&t store about once a week just to play with it. But I made myself wait, because I KNEW that sometime within the next 6 months, either the price would drop, or the hard drive space would go up. If you bought the iPhone the day it came out, you were either prepared to accept that fact and willing to buy it anyways, or you were just naive to how Apple always works. I'm STILL not buying one, because it's now very obvious that they are *this close* to bringing up the iPhone's total capacity to 16gigs, if not more. The fact is, you can never keep up with tech, and especially not Apple. You just have to anticipate what's coming and buy at the right time.

Sorry aross, i just bought a $399 iphone for my wife and it comes with everything my iphone came with when i bought it on July 5. the early adopters just have to suck it up...

If Apple wanted to make a boat load they should have sold the iPhone unlocked world wide. I myself could care less about visual voice mail, it's clear that American sales of the iPhone just isn't cutting it. Wake up Apple the rest of the world wants the iPhone and your making them jump through hoops to get it. If you want a stellar quarter sell the dam thing from the Apple store and Apple Online Store UNLOCKED.

Since this commodity has dropped in price, that's less incentive for someone to mug me for mine.

What they all paid the extra $200 for was to be the first kid on the block with the cool new thingy. Everyone knew these were coming down in price this much eventually, why does it sting more that it's 10 weeks rather than the usual 30 weeks? Cuz you only got ten weeks of cool?

This seems to be an example of gouging. The product is brand, spanking new: no existing pipeline of revisions.

I work in manufacturing and it's difficult to imagine cutting costs to result in a 30% price reduction to consumers so quickly.

The analogies of "general technology" and existing product line's evolution and pricing aren't really relevant.

This will impact the timing of future purchasing decisions for many.

I know it will for me. I am already reconsidering .Mac renewal and will put off purchasing Leopard.



Who says they've cut costs. Maybe they just cut their incredibly high margins to razor thin margins to boost sales (what, doesn't everyone do that?)

And I don't know why anyone would really rush out to buy Leopard, anyway. Wait for the bugs to get worked out, and for people to review it and let you know whether it really is worth $150.

But I'm not sure why it would hold off on these products. These are new versions of existing products, with a long history of being fixed in price. If you're holding off just because you're pissed, that's one thing. But holding off because now you think there's some 'track record', that's just not going to happen with these products.

One more thing, does anyone have any examples of

(a) product maker selling product for a specific price,

(b) several months down the line, they change to a lower price

(c) after changing the price, they offer some type of renumeration to the original purchasers.

And maybe some of you will finally understand some of what I've been saying for years. Apple is a company out to make money. They are NOT a company that concerns itself first and foremost with their customers/users (yes, this goes for you "Apple cares about us, that's why the iTMS has the best pricing policy" people).

If they decide to refund some money to early adopters, that will be for only one reason: The cost to shut them up outweighs the cost of bad PR (which might be why everyone is whining up a storm, although complaining here ain't going to help much). It won't be because they realize they've done you wrong and want to repay you for your patronage.

even worse than the price drop are all you guys with the holier-than-thou arent-i-smart-for-waiting attitudes. If you bought it you would be complaining too so why not sympathize instead of complaining about people complaining?

maybe. but consider this. Back on June 29th, if someone told you it would be $200 cheaper in September. Would you have waited? If yes, how about October? If yes, how about November? December? January? etc.

Maybe you feel two months is too short, but what about those of us buying today? But Apple is selling the goods - they get to decide how long to wait.

Customers today would be upset if they knew Apple was holding the price artificially high for an arbitrary number of months just to appease the early customers. Shareholders would be upset if Apple decided to remunerate the early adopters.

What should Apple do to please everyone?

Apple should have RAISED the price $200 to reward the earlier adopters. Then everyone would surely be posting about how the next time Apple rolls out a new product they will be sure to be the first one in line.

I can see why people are upset. I personally would be bummed about the money. But it's not Apple's "fault" that they are now offering a much better deal. Expecting some sort a kick-back for buying early is silly.

I purchased two (2) iPhones at the $599 price, plus paid to get out of existing contracts with Verizon to have an iPhone. Being a major Apple supporter (and customer), this definitely leaves a sour taste in my mouth.

WHY would I ever again purchase new Apple technology/products if this is how you get treated?!

Sixty days is too soon to drop the price so substantially! At least those customers who paid such a premium should get some type of voucher/certificate for a credit toward future Apple purchases through the Apple Store.

And with the new iPod announcements, it could be a 'win-win' proposition... Those customers who paid $599 for their iPhones could get a rebate toward buying even more Apple products (new iPods), and everyone would be happy.

Increasingly Apple seems to take for granted its loyal customers. Grrrr!

Technically the price dropped after 7 months, not two. The iPhone was announced in January with the $499/$599 prices.

Honestly why is anyone surprised? When it was released everyone said it was too expensive and wouldn't be subsidized by AT&T, how on earth would Apple compete? Well here's your answer. This is no different than a telcom subsidizing a brand new fancy phone (with 2-year contract) after a couple months and knocking the price way down.

Besides, if you would all stop complaining and just call Apple or AT&T (or both) and politely explain your disappointment with the price drop you will get your money's worth.

I already stated that I'm OK with spending the $600. And I already said that why I am complaining (and I suppose many others are) is that the quick $200 price drop feels like an insult.

I'm very happy to read that Apple via Jobs has apologized, which is what I asked for. And they will offer $100 store credit, which is very gracious of them.

As for the "apple owes us nothing" iPhone owners, enjoy the upcoming $100 credit with clear conscience. Sometimes "a rising tide" really does "lift all boats".

flash memory price volatility. Isn't it possible that the iPhone price reduction was based on changing cost of NAND flash memory? It's possible that there was a ramping up of 8 GB NAND memory manufacture that rapidly lowered the cost of memory in the iPhone. Also most likely the reason of the disappearance of the 4 GB iPhone. Within a few months there will definitely be a ramping up and price reduction on 16 GB NAND memory. Six months from now Samsung's 32 GB NAND memory should be in full production.

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