apple news/media reports
09/08/2007, 8:50pm, EDT
Saturday, September 8th
Apple's iPhone rebate hypocrisy
Apple's decision to credit early iPhone buyers $100 toward the purchase of other Apple products in an attempt to alleviate anger triggered by the massive 33-40 percent price drop enacted just 10 weeks after the device's introduction represents an about-face in the company's stance on such rebates. In fact, in 2003, Apple argued a Microsoft settlement that "fewer than 25 percent of customers redeem these types of vouchers." That criticism concerned Microsoft's $1.1 billion antitrust settlement, which consisted of vouchers worth up to $29. Wired reports "The vouchers, which are still being paid off, could be converted to cash upon proof of purchase of most any computer device or software from any company. Details about Apple's rebate are expected soon. Will Apple issue its own 'vouchers?'"
Apple's concession came after thousands of emails and feedback from angry customers. Backtracking on his previous hard-line stance, CEO Steve Jobs 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.
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Getting a $100 coupon for the Apple store is a bonus and that's OK with me.
I'm not angry about the price cut. There is no way for us to know what's going on in the background. Did AT&T provoke this? Was the wholesale price the same (I doubt it) or is AT&T subsidizing as they do with other phones.
Is this a move to clear inventory in preparaton for a 3G model intro?
Apple: voluntarily gave customers a one hundred dollar freebie, which the customers can actually use to get something THEY WANT such as iPod or other goodies.
See the difference between MS and Apple's situation?
When Razr phone first came out it was $500. A few months later the price was dropped to $300. You don't see that company issuing any kind of credit or refund. Razr cost the same as the iPhone! And NO credit on Razr after the price is lowered by 40% (of $500).
So pay attention, Apple is generously providing a freebie. You are putting conditions on freebies? Get real and stop smoking the funky stuff.
It's hard to gauge sales of a new product. Order too many, only to find once it's out that there some major change is needed, and you're screwed. Anyone remember the vast numbers of Performa's that had to be scrapped, all built on the assumption that Sears was going to be a major distribution channel?
What's going to be interesting is how soon the US market sees a 3G phone. Too soon, and plenty of people are going to be asking just hoe much technology and the market has changed in so short a timeframe.
I paid $600 for my iphone and i love it.
Had Apple not done the "right thing," buying a product the day of release would be a thing of the past with Apple and I. So far, I have purchased the Mac Pro, MacBook Pro, Mac mini, iMac G5, iPhone, and a host of software products within hours of their release. That would have been no more.
All technology companies rely on early adopters, especially a company like Apple who relies on word-of-mouth advertisement. To screw them on a regular basis is a really bad idea. Let's hope that Apple doesn't make this a regular habit.
So this is a decent offer.