I bought the phone on July 5th. Reports on the apple forums have ATT giving customers who bought on "iday" rebates on their phone bills of $200 (and in some cases $250) if they purchased from ATT stores. Apple is giving $150 credits to those who purchased online as far back as June 29th.

I bought mine at an Apple store--wonder what they're going to do?

Wow. That is interesting. I'm not feeling burned at all, but if they are going to give some credit, I'll be more than happy to take it. Worth a look into.

Bought my 4GB model on 8/17 at an Apple store. Guess I have been screwed. I wouldn't feel so bad if it was a modest drop in price. But $200 on a $499 product is obscene. Apple clearly grossly overpriced its product. If Apple does nothing to address this, I say iScrew them. I switch to PC and won't care how bad Microsoft is.

Keep us updated.

I bought a refurb 4Gb exactly 10 days ago. I just got off the phone with Apple (after an hour and a half wait on hold) and they are going to credit my card back. Sweet! I was already a happy iPhone owner - now I'm an even happier one! I am so glad I saw this article.

There's a lot of turmoil on the Apple iPhone support boards right now. Posts are being deleted by the moderators. I saw 3 deleted while online there earlier.
Bottom line, Apple has a lot of angry iPhone customers right now. I've never seen such a blunder by a company.
I've never used anything but Macs and have 2 iPhones (purchased a month ago).
Sad.

"Bottom line, Apple has a lot of angry iPhone customers right now. I've never seen such a blunder by a company."

Bhopal. Exxon Valdez. Tyco. Enron. Those are corporate blunders.

This, this is a bunch of people angry because other people won't be charged as much for the cool toy as they had to pay.

Someone needs to read the Parable of the Workers in the Vineyard

What do you people want? Are you so selfish that you want to make sure that others expend as much as you did? Do you expect the price to NEVER drop? My wife bought an iPhone. She loved it. She still loves it. Best phone she's ever owned.

Sheesh!

Patrick

jason, come on - 'This, this is a bunch of people angry because other people won't be charged as much for the cool toy as they had to pay' - wow, even a repetition in distress! you are the chief editor here, dude, you should know a bit better, perhaps.

of course the price drop along with steve's 'ff' response in USA today are grossly unprofessional - this here still ought to be a civilized part of the world, remember? we all like AND buy apple products and you actually make a living out of digesting them. nothing wrong with that, but please, do the corporate bugs bite that venomously? :) this is not about the lousy $200, it is not 'just a bunch of angry people', it is a bout trust, respect and reciprocity... and, btw, i used to like your articles... is there such need to cross the line?

The back of your receipt from the Apple Store states that if Apple changes their prices within 14 days, they will match the price. I bought my 8Gb on Saturday (9/1) and the store I bought it from gladly refunded my money. Unfortunately very few people use cash anymore (I did on Saturday), so they didn't have the $212 ($200 plus 6% Mich sales tax) in cash for me. They have to send me a check from Apple, which should take 10 days to receive.

I too am a VERY happy iPhone owner, and now a VERY happy iPhone owner with (soon to be) an extra $212!!

Hey Jason Snell- that is a pretty hard-hearted attitude for a chief editor here! Yes, I paid the price to get the iphone when it came out, and yes I could (barely) afford it. But does that mean (as you think) that I'm angry that others are not going to be charged what I was? HELL NO! (I'm not that hard-hearted). It means that I'm angry that I was charged what I was- ONLY TWO months before. Obviously, its the TWO month time frame that is key here- not that the prices get dropped eventually or updates come out. Yes, things like this happen in all businesses. But something about being a loyal apple/mac customer that makes you feel that steve jobs shouldn't screw you this way- I guess I need to wake up and smell the coffee.

Jason you are wrong...it's about a company punishing the early adopters for supporting their product launch. I'm fine with a company dropping the price after a while (say 6-12 months), but a $200 drop in two months, is way too much. Why will I even bother purchasing a new apple product at launch again, when I can just assume that if I wait 2 months I'll get rewarded with a price break??? I'll still buy apple products, but I'll never buy something new right out of the gate, and I hope people follow suit with the new ipods that were just launched....

This is people angry over Apple charging way to much to its most loyal customers and excited new converts. It's clear now that $399 was the price it should have launched with. Good luck getting anyone to buy an Apple product on release day again!

I live 1.5 hours from the closest Apple store, where I purchased an iPhone on 8/21. I spoke to them this morning and they said I had to physically come into the store (3 hours round trip) and they wouldn't confirm whether or not I was eligible for a refund. Big help.

I called Apple online and they told me I probably AM eligible because the phone would need to have been shipped by 8/22 ... and that means I would have had to buy it up to 11 days prior to the 8/22 cutoff if I'd bought it online...they're grandfathering folks who bought in the stores. Maybe.

Wish I could get a clear answer on the eligibility question.

Turmoil on the Apple Customer Support forums might be an understatement. They're completely down as of 9am PST.

Turmoil indeed. I think Quake players call this "cratered".

Need to shout-out thanks to AT&T. I got a bit of goodwill from AT&T customer support. Be polite with them and you might get a nice suprise.

I support Jason. Get real, guys. This *is* an overpriced toy even now, and by no means a necessity. Those who jumped in to pay the top buck are certainly not very needy people. There is nothing predatory about setting a higher margin for those who absolutely *must* have the toy when the toy comes out, and then lowering the price in time for the holidays.

When has Apple, or any company, not "punished" the early adopters by lowering prices later? Tech product prices go down, not up. Apple's always done this. This is more radical than most (theories about why in a while, in a full entry from me), but it happens.

Do you have a right to be mad? Absolutely. Macworld bought a half dozen iPhones. That's $1200 I could have saved if I had waited -- but I didn't want to (and couldn't) wait. Bummer.

But there's an undercurrent of entitlement here that I find offensive. You bought your iPhone for the price on the tin. You got what you paid for. Those facts are undeniable.

Jason,

Just because the Bible says it's okay to screw someone, doesn't make it right. You've got to keep in mind, the Bible was written in a very different period of time, in a culture that has dramatic differences than ours today. And... I may be wrong, was not written on a computer.

The parable only speaks of a one-time transaction. If Apple were to sell to customers only once, then they could mistreat each and every one of them to their heart's desire.

BUT... when you screw over the customer as badly as Apple just did and damage that whole Apple Experience Steve is so fond to refer to (as well as MacWorld), then you risk any future sales beyond the one single iPhone transaction.

What's scary is that Apple was brazen enough to do something like this in the first place. Steve is feeling benevolent because so many Apple customers are pacifists - like you - and Apple has had a streak of success.

If this blows over, that's the worst thing that can happen to the Apple we all know and admire. If this blows over, say hello to the new Microsoft:

Apple.

> Jason wrote: But there's an undercurrent of entitlement here that I find offensive. You bought your iPhone for the price on the tin. You got what you paid for.

I find it offensive that you suggest we so easily bend over for Apple. That's the worst thing that can happen to the company... for its customers to be so submissive and willing to be take advantage of.

The Apple Experience is DEAD if they don't do right by this iPhone SNAFU.

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>You got what you paid for.

Suckered is what I got. Someone else 3 days later got $200 back.

Bible?

This is not the first time Apple has done this. This is the quickest they've done it, but hardly the first time. In fact, every single time someone asked me if the iPhone was too expensive, my response was, "Don't worry, pretty soon they'll cut the price -- they always do." It's how Apple manages inventories. It's supply and demand -- more an econ book than a bible, and frankly more my style. If Apple can only make so many iPhones, and they can sell them all, they can raise the price until they feel they can sell them all.

Then, when Christmas rolls around and they've got more to sell because of ramped up production, and a consumer audience that's more price sensitive than the early adopters, they drop the price and sell a boatload of them.

I understand that many people are taken aback by the swiftness and steepness of the price drop -- I sure was -- but it's the same tactics Apple has used before. As has every other tech company.

Apple has always been, and will always be, a profit-driven business. As I've said before, they are not a charity. They are driven to make good products, but the goal of that drive is to sell those products and part you from your money. If this price drop disabuses some people of their rosy-colored view of Apple as something more idealistic, so be it.

My guess is that more people will be loving Apple for selling them an iPhone for $399 than will be hating Apple for selling them an iPhone for $599 and dropping the price later. But we'll see.

AMAZING, is all I can say of the logic some people employ!!!

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>speraunskas wrote: This *is* an overpriced toy even now, and by no means a necessity.

Sodas are by no means a necessity. The shirt on your back isn't a necessity. Haircuts aren't a necessity. Drinking milk isn't a necessity.

Who are you to tell anyone else how to spend their money?

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>Those who jumped in to pay the top buck are certainly not very needy people.

So it's okay to screw someone who has worked hard for their money? Your money is your business. Mine is mine.

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>There is nothing predatory about setting a higher margin for those who absolutely *must* have the toy when the toy comes out, and then lowering the price in time for the holidays.

The problem (not saying it's a predatory one) is that the monetary value of the device dropped within such an amazingly short amount of time. It's a loss of real value, not imaginary... real!

Imagine the composition of those who bought before the price drop... it'll consist heavily of loyal and repeat customers. Are these people Apple wants to screw with? Before.. no. Now... yes!

That Apple is so brazen and willing to damage the Apple Experience and customer loyalty is scary. You should be scared. The Apple we've known is gone. Say hello to Apple-Microsoft!

>Jason wrote: Bible?

Yes. You're the one who brought up the parable, remember?

>This is not the first time Apple has done this.

Name another instance. You're bringing normal business practices into the mix. Steadily improving products and adding value is a normal part of selling goods.

We're discussing selling the iPhone at a high price and then rapidly devaluing the exact same product, nothing improved just devaluing it at an unprecedented rate.

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>My guess is that more people will be loving Apple for selling them an iPhone for $399 than will be hating Apple for selling them an iPhone for $599 and dropping the price later. But we'll see.

I agree. It's scary isn't it. Apple so willing and brazen to screw over loyal and repeat customers.

The act of doing good by their customers would help Apple maintain their loyal customer base as it seeks new customers and business. Do you not agree?

Is the Apple Experience just marketing hype? The have had pretty good customer service in the past. Why the drastic change?

Maybe now ATT will add the phone to the insurable list!

Rich.Ter, I I think you've got me confused with Patrick's reference to the parable. I don't use the Bible to make rhetorical points. Never have, never will.

"The act of doing good by their customers would help Apple maintain their loyal customer base as it seeks new customers and business."

I don't disagree. I think Apple would be smart to offer some sort of reward to early iPhone buyers as a thank-you for being on the forefront. That would be a good marketing decision, in my opinion. Are those users _entitled_ to it? Not at all. There's smart marketing and then there's entitlement.

This is nuts. As early adopters we should be courted, not penalized.

Looks like Apple heard the uproar:

Steve's Open Letter to iPhone users

Just a few points:

1) Chill out folks. Compensation is available. Either a refund if bought within 14 days or now a $100 store credit for the early adopters. (see Jobs letter on Apple's Home Page)

2) No one got screwed! If you put down your money for a product you are agreeing to spend that amount on the product. You are casting a vote that says "gee, this is cool and worth the money" otherwise don't buy it. It's that simple.

3) Hind sight is 20/20. Apple probably messed up in either one of two ways. They either should have priced the original phones at $399/$499 or they, perhaps, should have gone with a $100 price cut. Who knows? But at least they are taking action and delivering nice products that truly will perform over years. I know because I'm still using my 7 year old MAC and running Apple's latest Operating System on it. So if you were an early adopter of the iPhone use it for at least 3 years and amortize the price difference over 36 months and you're only paying an extra $5.50 per month.

Yes, I was very unhappy to see a price drop of $200. It's like Apple decided to make a fool out of everyone that believed in their product and was willing to pay up to $599 as I did. I don't think it's a matter of "entitlement" at all. The price drop is too much too soon for it not to have the smack of an insult. I'm not saying a price drop is by itself bad but this one sends the message that people who supported the product early, right out of the gates, get screwed only 2 months later.

What really bites is the 14 day offer. I'm sorry, but standard for any return is 30 days. I guarantee you that if I bought a Plasma at Best Buy for $2000 and they lower the price $200 in less than 30 days, they'd make the price difference right. I also find it hard to believe that my salesman at the Apple Store, where I bought my 4g 19 days ago, didn't know that Apple planned to close out the 4g and at least let me know not to purchase it instead of the 8g. I plan to take this 4g back to the store and ask them to make good on the price difference. 14 days! What crap!

My son saved his money from his summer job to buy his iphone. As his mother, I am angry that he would be taken advantage of in the way that Apple has done. It is a slap in the face to anyone who paid $599. Store credit of $100 does not diminish the bad taste of biting into this very sour Apple.