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Apple offers $100 credit to iPhone owners

updated 03:20 pm EDT, Thu September 6, 2007

$100 credit to iPhone

Apple's Steve Jobs on Thursday said he would offer previous iPhone customers a $100 store credit toward purchase of any product at an Apple Retail Store or the Apple Online Store, following thousands of emails and feedback from angry customers. Backtracking on his previous hard-line stance, Jobs also acknowledged the role of early adopters in the evolution of a product, while emphasizing that price continues to decline over the life of any technology product. Customers, he said, could expect a $100 credit some time next week. In an open letter to customers, the CEO reiterated that the company was making the right decision with its price cut ahead of the holiday season, but noted that trust was an important factor in customer relationships.

"If you always wait for the next price cut or to buy the new improved model, you'll never buy any technology product because there is always something better and less expensive on the horizon," Jobs said. "The good news is that if you buy products from companies that support them well, like Apple tries to do, you will receive years of useful and satisfying service from them even as newer models are introduced."

Jobs conceded that while the technology road is a bumpy one, Apple should have done a better job of taking care of early iPhone customers, many of which make up the company's most faithful.

"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. Details are still being worked out and will be posted on Apple's website next week. Stay tuned," he wrote.

The Cupertino-based company aggressively deleted anti-Apple threads after announcing its price cut yesterday morning. Upset iPhone owners posted their frustration in droves, and one user claimed Apple had deleted upwards of 2,200 posts throughout the day. Dozens of posts and readers from around the Web called on fellow iPhone owners to contact media organizations and send emails to Steve Jobs himself.



A transcript of the complete letter follows.



To all iPhone customers:

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. iPhone is a breakthrough product, and we have the chance to 'go for it' this holiday season. iPhone is so far ahead of the competition, and now it will be affordable by even more customers. It benefits both Apple and every iPhone user to get as many new customers as possible in the iPhone 'tent'. We strongly believe the $399 price will help us do just that this holiday season.

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. This is life in the technology lane. If you always wait for the next price cut or to buy the new improved model, you'll never buy any technology product because there is always something better and less expensive on the horizon. The good news is that if you buy products from companies that support them well, like Apple tries to do, you will receive years of useful and satisfying service from them even as newer models are introduced.

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. Our early customers trusted us, and we must live up to that trust with our actions in moments like these.

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. Details are still being worked out and will be posted on Apple's website next week. Stay tuned.

We want to do the right thing for our valued iPhone customers. We apologize for disappointing some of you, and we are doing our best to live up to your high expectations of Apple.

Steve Jobs
Apple CEO




by MacNN Staff

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Comments

  1. Deal

    Joined: Dec 1969

    0

    Throw in...

    Throw in another $50 of ITMS credit and I'm sure they'd all be tickled pink!

  1. climacs

    Joined: Dec 1969

    0

    copy editor needed here

    "Apple's Steve Jobs today said he would offer previous iPhone customers a $100 store toward purchase of any product"

    $100 store credit, do you mean?

    "Customers, he said, could expect a $100 credit sometime next."

    Next when? Week? Month? Year?

    sheesh.

  1. Monstermind

    Joined: Dec 1969

    0

    "Hard-line stance"?

    Tch. p****.

  1. rtbarry

    Joined: Dec 1969

    0

    unexpected...

    ...and unnecessary, but i'll take it :-)

  1. rtbarry

    Joined: Dec 1969

    0

    oh yeah...

    ...once again, kudos to the awesome copywriting and editing here.

  1. Paul Selden

    Joined: Dec 1969

    0

    4Gb or 8Gb only?

    Does everyone get the $100 or just 8Gb owners?

  1. doctor9

    Joined: Dec 1969

    0

    thanks!!!

    This is a very agreeable resolution to this matter.

    As I always stated, I love my iPhone and had no problem paying $600 for it. But to see such a quick & dramatic price drop w/out acknowledgment to early adopters would only alienate any such future adoption on new Apple products.

    Well done, Apple!

  1. Mr. Fartleberry

    Joined: Dec 1969

    0

    ripoff the early adopters

    I expected this would happen. But why PO all those customers in the first place and just announce it at the show. Anyone remember the first laserprinter that dropped thousands on dollars between Friday and Monday?

  1. henjin

    Joined: Dec 1969

    0

    3 cheers for complainers.

    A big round of applause for all those customers who made a complaint about the price cut. This idea no one should complain is un-American and only the Apple fanatics would ever suggest it's the consumer's fault for buying early. If we all acted as if Jobs walked on water we'd have no consumer rights at all. Jobs wants us to accept that prices will go down quickly. I agree but we should still carry on the fight to get Apple to behave at least as good as Samsung or RIM. 1) 30 day trial period not 14 2) 399 USD full price with 2 year contract 299 as is common practice 3) And something new: built in 90 day price protection, something that Apple would make money off as more people will buy new products.

  1. lordarka

    Joined: Dec 1969

    0

    Thanks for your efforts!

    Well, I was happy to take my lumps, but I must say that I commend those who complained up a storm on my behalf... I wish I had joined you, instead of being so cynical about the prospects of any refund.

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