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Woz: iPhone price drop "too soon, too harsh"

updated 02:00 pm EDT, Mon September 24, 2007

Woz on iPhone price drop

Apple co-founder Steve 'Woz' Wozniak says company CEO Steve Jobs' decision to slash the price of its recently-launched iPhone nearly two months after it hit store shelves was "too soon" and "too harsh." "Nobody expects a product to drop that much in price in such a short time," Woz said. "Steve Jobs and everyone expects technology to drop in price. The first adopters always pay a premium. I am one of them. I am used to that. But that one was too soon, too harsh." Apple's chief unveiled the iPhone in January at the Macworld Conference & Expo in San Francisco, and the device hit selves in late June. Jobs slashed the iPhone's $599 price down to $399 in one fell swoop during a special event on September 5th, angering early adopters and prompting the executive to announce a $100 Apple Store credit for those customers who eagerly purchased the device just after launch.

by MacNN Staff





  1. mpetrides

    Joined: Dec 1969



    On the other hand, I am very glad that the rebate goes to the end user and not the purchaser.

    I bought two iPhones on the day after launch, one for myself and one for a friend who lives far away (FedExed it to him).

    If the store credit went directly to the purchaser, then I'd have to find a way to transfer credit to him (not easy if I can't buy a gift card with the credit). This way, he claimed his own credit and we are both happy campers, no fuss no muss.

  1. malax

    Joined: Dec 1969


    sloppy thinking

    It bugs me every time someone says something akin to "the price cut was too harsh." It's not the price cut that people should complain about, it's the original price, right? It's the perceived price premium that was charged of the early adopters that should be offensive, not the fact that the price is now low. And the fact of the matter is, Apple is giving back $100 to the early adopters, so it's all good.

    If the price of gas dropped dramatically overnight, would people be upset about the "harsh price cut?" "I paid $2.67 a gallon for 15 gallons yesterday, and today you're only charging $1.80 a gallon? How dare you!"

    So complain about the situation as much as you need to, but try to clarify your thinking and exposition, first.

  1. danviento

    Joined: Dec 1969


    So now we're

    complaining about getting money back too soon? What will they think of next? People should be happy that Apple doesn't milk their prices like others would have taken advantage of. They'll actually make more money this way. Way to go!

  1. psdenno

    Joined: Dec 1969



    what do you think Woz will buy with his $100 rebate?

  1. Bill in Providence

    Joined: Dec 1969


    This subject wearies me.

    I subscribe to the theory that Apple initially charged $600 in order to restrict demand. Otherwise we many--not I--would have paid the $200 premium to scalpers on eBay. I prefer that the money went to the people who earned it: Apple. Since few people profited on eBay from the iPhone, it seems that $600 was the fair market price at the time. In short, no wrong was done by Apple. Just business. I'm bemused that Woz can't seem to get his head around capitalism.

  1. ccrider

    Joined: Dec 1969



    Man - u know i'm getting a little tired of hearing woz's opinion on everything apple does. Is it just me?

    I KNOW he created the personal computer, breakout and other things but do we need his stamp of approval on everything apple is doing?

    And yes, i did own an apple II so there.

  1. jarod

    Joined: Dec 1969


    WOZ must leave!

    This guy is becoming a serious pain in the a** with his clueless business sense and retarded comments. You helped make something a looong time ago and then you left. BEGONE already. No one really cares about you esp when you have nothing useful to contribute..WHINER!

  1. Guest

    Joined: Dec 1969



    Instead of lowering the price so soon, Apple should have waited another couple of months, so everyone would feel better about their purchase!

  1. thinkman

    Joined: Dec 1969


    When Woz Was.

    I have to agree with jarod - what has Woz done since the Apple II that anyone even knows about, except playing polo on a Segway. Time to take the millions Apple has paid you all these years and do something constructive. I'm not saying anyone is not free to critique a product or service, but what has Woz shown us as regards his marketing acumen that might even come close to Bill Gates (snore), let alone the master showman himself - Steve Jobs!

  1. slider

    Joined: Dec 1969


    It's just stupid

    Seriously. Yes, I think the iPhone price was high to start with, but what if the thing flopped. What was Apple suppose to do, just keep the price high through the christmas shopping season so all the early adopters could feel good about themselves? It was a business decision Apple could make after they got an idea of how the iPhone was received and had some actual sales numbers to adjust the price point. It's not personal, it's business.

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