The Woz is unhappy with iPhone’s price cut
The wonderful wizard of Woz is a huge fan of the iPhone—he estimates that he’s bought about 20 of the handsets so far—but he’s proclaimed himself less-than-a-fan of Apple CEO Steve Jobs’s decision to significantly drop the price of the phone less than three months after the release.
“Nobody expects a product to drop that much in price in such a short time…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.”Woz went on to say that he was a little miffed that the $100 credit offered by Apple went to the ultimate user of the phone rather than the person who bought it.
“If I bought it and gave it as a gift they get the discount,” he said of the Apple $100 credit policy for early iPhone buyers. “Why don’t you just take my receipt and give me the money back? And of course it always comes back to Apple Store credit.True though that is, we imagine that the number of customers who bought twenty iPhones or so is pretty low, so while the Steve Wozniaks and Scott Bournes of the world may find themselves out a pretty penny, I will probably not be crying myself to sleep over their losses. If you can afford to go out and buy twenty iPhones in the first place, you’re probably not exactly in dire straits. Financially or musically.“So instead of getting US$100 back you are getting US$50 back sort of. It is very optimal to the company. I feel badly about the situation for everyone. I don’t think Apple should have even done it. Maybe a very much more gradual price reduction, US$50 at first or find ways to bundle it into a savings on your account.”
[via iPod Observer]
Category: Musings
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Comments (7)
No, that was wrong of Steve Jobs. The bottom line here is the hard core apple fans suffer. It is a sad day when loyal customers suffer with a competitive market like today. Being one of those loyal fans I would just like to say Steve Jobs made me look at other companies with that move and I sure there are a ton of others out there who feel the same way.
US$100 was not enough....
Posted by Matthew Nash | September 24, 2007 12:37 PM
How did early adopters, like me, "suffer"? I paid $600, then the price dropped. If the price had not dropped, I still would have paid $600. So I'm not hurt by the price drop. (And since the price drop stirred up such a tempest, I now have a $100 certificate for the Apple Store I would not have otherwise had.)
However the price drop helped many people, and helped more people than it would have if the price drop had come later instead.
So, no one was hurt, many were helped. That's a Good Thing.
Posted by Jim Ratliff | September 24, 2007 4:42 PM
i'm with Jim Ratliff. i don't feel i "suffered" from my choice to buy early. i tend to look at the gift certificate from apple as being a sotr of "thank you" for being an early adopter.
Posted by franko | September 24, 2007 5:52 PM
Two really bad arguments. "instead of getting US$100 back you are getting US$50 back sort of" Huh? What kind of math is that? You are getting a $100 credit at an Apple Store. If you are buying something you would have bought anyway, you are saving $100, not $50 (and we all know what Ben Franklin said about saving pennies). If he's talking about the cost to Apple, well that's not about righting a wrong or rewarding early adopters, it's about punishing Apple.
As for the gradual price reduction, Jim Ratliff nailed it. That would only hurt people that buy over the gradual reduction. Attention people, the price reduction cannot actually be a bad thing! For anyone! The only argument that makes any sense it to say the original price was too high. So stop complaining about the timing and magnitude of the drop. You can complain (but please don't) about the magnitude of the original price. Of course, if you paid $600, you can't complain about that price. That would make you the idiot.
Posted by Dave-O | September 24, 2007 8:34 PM
Well, if we spent US$600 on an iPhone we should get US$100 back to buy from anywhere else. If we had to chose from US$600 to use anywhere, we chose Apple; therfore, Apple should give us money back so we could use it anywhere we liked, just like we chose Apple in the beginning. Its not really a credit, when the money eventually HAS to go back to Apple-its not a loss for them, like it was for us.
Posted by Andrew | September 24, 2007 9:51 PM
I woke one morning to the shouts of the Apple iPhone Early Buyer Squad. Drug out of bed (ooh - ouch), I was ordered to gather up my I.D. and credit card and report to the long line forming outside the Apple Store.
It was humiliating, and then, as if to add insult to injury, Apple shirted people walked up and down the line handing out FREE water, coffee and sweets. The whole thing was disgusting, what with people talking with each other and all.
Well, once inside, I had a phone thrust in my hand by one employee while another took my I.D. and removed over $600.00 from my credit line. I was told to get to a high speed internet connection and sign up for a multi year monthly contract with AT&T - ASAP.
Then, hustled out of the store (but not before being required to buy a case for the dang thing) I was forced to run the gauntlet of yelling people and the incessant flash of the media cameras. I was even forced to say something to a TV crew.
It was HORRIBLE! And just last week I was instructed to again show up at the Apple Store where I was FORCED to choose $100.00 worth of retail products and was NEVER CHARGED!
During the first few months as an Apple iPhone owner I was inundated with bothersome queries and ogling onlookers every-time I used the damnable device.
I plan on suing Apple for all the trouble they have put me through. (Oh, and the free water and coffee wasn't that good either!).
Signed,
A Total Ingrate ! !
(laugh with me here people - WE are the Emperor and I for one feel a draft!)
That Ray Guy
Posted by That Ray Guy | September 25, 2007 10:04 AM
First time in the history of capitalism people complain about something being cheaper.
Posted by Clever Screen Name | September 25, 2007 8:55 PM