RSSEarly Apple iPhone Adopters Feeling Undercut by At Least One Third
By Scott M. Fulton, III | Published September 6, 2007, 11:09 AM
FOR MORE: Jobs Apologizes, Apple to Give iPhone Customers $100 Credit
Yesterday's announcement of a $200 price drop for Apple's 8 GB iPhone, and the cancellation and clearance of the 4 GB edition, was all some investors took away from CEO Steve Jobs' gala rollout. Meanwhile, among the Apple faithful, there emerged clear signs of discord, especially after expressions of disapproval on Apple's forums evidently disappeared.
During his unprecedented "live coverage" of yesterday's Apple announcements direct from his living room, the lead anchor of online video service Cunning.tv -- who appeared to be no more than 11 -- put down the corn dog his mother had just handed him off-camera to check the stock value for Apple, Inc. It was about 12:45 pm Eastern Time, and it was starting to head south.
"What are you people thinking?" he shouted, tucking away half a bite into the corner of his mouth. "They just announced the iPod Touch! It has Wi-Fi!"
But at that same time, investors across the country were using their BlackBerrys to place sell orders on AAPL stock. They didn't hear the Wi-Fi or touch screen news, or if they did, they didn't get it. CEO Steve Jobs had just announced a $200 cut -- about one third the MSRP -- in the retail price of the 8 GB iPhone, and a $100 cut for the 4 GB which is being discontinued.
After finding its footing by about 2 pm at about $145 per share, Apple stock on the NASDAQ exchange resumed a downhill plunge. This morning, it had yet to find bottom, at about $136 per share and continuing down.
The iPhone price cut was so newsworthy this morning that it was among the first things to come out of NBC Today show anchor Matt Lauer's mouth. More than Pavarotti's death, Fred Thompson's late night gig, and Sen. Craig's lack of resignation, the fact that a few weeks ago he spent $200 more than he would have today was just itching to be said, and Lauer couldn't suppress the urge.
While a price cut for a CE device after its first three months on the market is not uncommon, a 33% slash for a product this important is certainly out of the ordinary, and any kind of double-digit percentage cut for a product bearing the Apple logo is unprecedented. Investors are believed to have taken the news as an indication that perhaps the iPhone isn't selling as well as it should, despite analysts' news from iSuppli and elsewhere that the iPhone outsold all other smart phones in the US for the month of July.
When asked yesterday what message existing iPhone customers should take away from so steep a price cut, Jobs told USA Today, "That's technology. If they bought it this morning, they should go back to where they bought it and talk to them. If they bought it a month ago, well, that's what happens in technology."
The response from the Apple faithful on the company's iPhone support forums was believed to be an uproar. But evidence of that uproar is waning, in the wake of what was evidently a purge of negative comments from Apple's forums. One generally upbeat Mac blogger posted screen shots yesterday of forum threads with names like "I feel cheated," and, "WHERE IS ALL THAT LUV??"
This morning, a check of those forums themselves reveals not only are those topics from the screenshot indeed missing, but at least one of their creators' usernames has been purged from the forum's rolls.
Of course, it may be impossible to remove every negative post, including those from people who have already found their initial reactions missing.
"Apple, what the h*ll are you doing?" reads one message posted very early this morning. "Just because someone writes something that may hurt for a moment in the long run others will comment that Apple had guts to allow all sides to be heard. Maybe the fact that Apple is trying to control these posts has been why others have always referred to Apple users as a cult like following. And you, Apple, are proving their point. Sad."
This morning, The Unofficial Apple Weblog posted an article for those who feel they paid too much and want to take action. Entitled, "Apple screwed you: So now what?," writer Erica Sadun reminded customers of Apple's official policy: If the company drops its prices within ten days following a customer's purchase, that customer can indeed request a credit for the price difference.
Between the 10- and 30-day mark, there may still be avenues for redress as well. "If you're within the first 14 days of purchase, you're golden," Sadun writes. "Go back to the store and raise hell. You may still be charged a $40 restocking fee - theoretically you shouldn't be for exchanges - but otherwise, you're good to return."
BetaNews' Nate Mook purchased his iPhone on day 1, though he doesn't count himself among the disappointed. He feels the price cut is indicative of two things: first that the price was already too high for sales to meet the company's expectations, second that it was making enough of a margin that a one-third price cut wouldn't hurt Apple - a theory confirmed by a recent iSuppli teardown analysis.
Not all comments on Apple's support forums were negative (especially those that are still up there). Adopting a tone that makes you wish Dana Carvey was available to read it aloud, one iPhone owner wrote, "So you decide to shell out the $600+ for the iPhone wanting to have the newest thing from Apple in your hand. Then, a couple of months later Apple decides to make the product more affordable and expand their presence in the cell phone market. Why would they decide to do such a thing? Hmm, I don't know, maybe because they are in business to make money by increasing their market share!...All I'm saying is that if you purchased your product recently and feel like you genuinely deserve a partial refund then fine, but don't blame Apple for making their product more affordable for other people."
The biggest complainers right now are those that expected this product to over-sell, so they bought quantities of it as soon as they could, and started selling them privately at a big mark-up. Now they're really getting shafted (deservedly) because not only has the supply NOT weakened, but they're dropping the price, so now those t00ls can't sell the product, even for what they bought it at. I have no sympathy for them.
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The phone should have never been started sale at what it was set for, that is just ridculous. 600 dollars for a phone, are u kidding me?
Still for 400 dollars I would buy a blacberry or even the new microsoft phone for productivity. iPhone is nice and sleek but it doesnt provide as much productivity as other smart phones.
www.worknplay.net
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I can't believe that everybody is so surprised by this. Apple has be been ripping people of forever.
Don't believe me??? Just go to one of their Europe Apple store sites and then go to the one from Canada. You will notice that the prices are the same in Euro as they are in Dollars. Right now the Euro's at 1.37 to the dollar. Which means that same $400 iPod Touch cost $548 in The Netherlands for example. They make $148 more on the same product abroad. You'd think they'd leave the same price for our neighbors in Canada that have a weaker currency. Wrong, there they raise it to $449.00 Canadian. At least I hope it's Canadian dollars and not US.
So all you fanboys that say Apple is good and M$ is evil. The reality is they're both the same, M$ was just better at it. But don't kid yourself Apple isn't far behind.
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yeah, only the difference is that when you get an apple product it's a hot, sexy, smoothly finished, well supported product as solid as was possible to make with regular fixes, releases, and generally wicked natively english speaking people you can speak with face to face if need be when something goes wrong. things match. there is no convoluted vision of what something should be. it just is, and generally speaking it works very well for its designated role even if it may be underfeatured in comparison to its clumsy microsoft counterparts.
yep. i like my apple stuff. for years microsoft was the only decent OS based on its market position and what it delivered was sub par unreliable garbage and that's why it's earned it's well deserved reputation as a source for crap. from what i understand, vista isnt exactly the hotness either.
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iPhoolU News Release: Expect Apple's phone prices to fall even lower following the Christmas rush of iPhools buying at the still ridiculous price of $400.
Also, the reactions of the iPhools (i.e., Apple phanatics) only shows they do not live in the same real world as "normal" people. (Jobs seems to, however, with his essentially "Skit Happens" remark.) Why don't they just go ahead and create Apple Life (ref.Second Life) where all their fantasies come true and remain forever true.
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I think that people who bought the iPhone on the first days of it's launching were people that wanted to show off their new gadget, to be the first one's like when Play Staion 3 came out, you pay the price, people paid over a $1,600.00 on PS3 and now you pay what, $600.00??
If you want to be the first you gotta pay the price and don't complain later.
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Since when has it been news that electronic gadagets drop in price over time as newer models come out? This is plain stupid. If you want to pay less, wait longer to buy the damn thing. I suppose then it would have made these idiots happier if Apple announced price increases instead?
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Waaaaahhhhh.....
Mommy, I bought a candy bar and then then it went on sale. I'm so depressed I might have to ride my bike off a bridge. Waaaahhhhhh!
Sad, so sad. I've lost all respect for Apple now that they've given in to a bunch of sniveling idiots.
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The greatest part of all this is that people who complain about $200 difference don't seem to realize that they will be spending about $2000 over the course of two years.... but that doesn't seem to phase them.
Hilarious, really. People who complain truly are amusing.
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To me, a person that stands in line for hours to buy an overpriced cell phone is an icon of ridicule. It’s a phone, you use it to talk to people. The fact that they add a functional web browser and a touch-sensitive interface is just gravy. It’s a phone.
Get a life, kids! In the words of Tyler Durden, You are not your f**king phone! You bought it the day it was out, and had two months to jerk off to its smooth curves and spray your dirty smug all over your amazed friends’ eager faces. Now shut up and take it like an adult. You didn’t lose $200 today, your phone still works the same as it did yesterday. The only reason you Apple fanboys whine about resale value is because you’ve never had any concept of value to begin with. Computers can’t have much resale value when the newer, faster units with a full warranty are cheaper than last year’s model. Apple is overpriced, and a 400mhz G4 is NOT worth $500 in 2007. How about I give you a case of Michelob and a kick in the nuts ?
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This is pathetic next thin you know some losers are going to start suing apple because they decided to be the first ones to get this thing but after couple months there complaining that they dropped the price how sad. This is just marketing at its finest. put the bait out and watch all the ants go for it. LOL
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"Apple CEO Steve Jobs posts open letter to iPhone customers,"
http://www.apple.com/hotnews/openiphoneletter/
Is this a joke. I want 300 dollars for damages.
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Like, WTF!!!?!????????!?!?!?????????!?!???!?
I mean if this were ****ing Sony and we were talking about the g**d***ed PS3 then all we could've heard is "The technology has value [sic] at the price and ain't gonna be cheap no matter what, SO THERE! [SARCASM]"
I think all these companies that push expensive, complicated technology at exorbantly-priced SKU tags need to get a ****ing life into their CEO's. In other words, if Apple prices itself out of the cell phone market and drops the price to improve its odds (never mind that Apple pulled a Sony with the cancellation of the 4gig iPhone, mind you) then why the **** can't Sony take a loss on the g**d*** PS3? (That is, if you'll excuse my harsh words...)
And to quote/paraphrase that slapstic redneck Larry the Cable Guy: "Lord, I apologize. Now Git 'er DONE!"
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be nice If the ones that paid top dollar should be given a year free subscript for tunez and some free ring tones
well thats what i would think is fair If it were me
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how about 100 bucks at an apple store. Now i can final get a copy of office and see what all the fuss is about.
just call me captain powerpoint
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Calm down nerds.
If you cant pay the price to play the game then you shouldnt play. Period.
Whats $200 bux anyways??? Its peanuts. Steve agreed to give you whiners $100 bux back anyways so calm your overactive estrogen gland and be a man about it. F**king whiners...
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This is patently nuts. How much is this thing now? $400? IT'S STILL TOO EXPENSIVE!!
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its 399, so their still enough for a dbl cheese burger to go
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Upset? - Feel taken? I agree with pairof9s, Fool me once, shame on you. Fool me twice, shame on me. If Apple doesn't make this right, especially with the people that bought the 4G, then I say when they bring out the new toys...wait them out...refuse to pay the high price, because prices will fall, wait them out! Prices will fall! And not just Apple, wait them ALL out, plasmas and all, prices will FALL!
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http://www.apple.com/hotnews/openiphoneletter/
"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."
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Big freakin' whoop. That's peanuts compared to the sheer number of people that purchased theirs through a Cingular / ATT outlet.
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Learn to read: "...purchased an iPhone from either Apple or AT&T..."
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If you were willing to pay $600 for a phone with an 8gb MP3 player & better web access. you have no reason to complain. Price cuts happen all the time, albeit this was a 33% cut. But i bet you would still fork over more if the unit was selling for $800. Get off your high horses.
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Hah, what about all the idiots who waited on line for this thing - wasted all kinds of time AND money!
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Someone should bash Microsoft because they've don't this befo- .... no they didn't.
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lol
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Your right, they've done MUCH MUCH WORSE!
Monopolizing the market so they can push competition out and charge whatever outrageous price they want...LOL@blindfaithformicrosoft
Good one ACE!
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I am in agreement here. I just find a 33 percent price cut in a product so soon a little strange. Honestly, I think the hype is not matching the sales, and Apple had to do something.
Investors are a little peeved, and rightfully so. Apple placed a huge premium on this product, and now realized that it was going to hit a brick wall real quick with a $600 phone.
I'm sure Nate will chime in with how I'm just jealous :)
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The mobile phone market works a little differently to say, mp3 players...
I still think it's cute that everyone thinks it's so advanced though. Curse those US phone companies for keeping the good stuff back from you hungry consumers for all these years!
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OMG visual voicemail! ITS A KILLER APP.
Um, not. :)
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daily i wish i had it. i can't tell you how many annoying phone calls i wish i could just delete without listening to.
"uhm, yeah, you're annoying. *DELETE*"
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I wouldn't be surprised to see the Touch drop in price after the holidays. That's the kind of sentiment that drives stock prices down.
And who is going to buy it? Hard to believe anyone who has an iPhone will buy it. And most iPod users are used to more storage.
They colossally screwed up by not making the Touch hard drive based with much more storage. That would sell. Time will tell.
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Good lord.
It's called the "Gotta have it now" tax. They had to have it, they paid it.
End of story.
How the hell is this news??
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Aargh! I agree with PC_Tool on this one. What's the world coming to? ;-)
If they thought it wasn't worth the price they paid for it and bought it anyway then they were clearly silly people.
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Clearly this is a sign.
*draws "The End is Here" sign*
See ya on the streets, man.
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Yeah, it's not really news, but it is really fun to laugh at all the Apple fanboys who just got officially owned.
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By fanboys you mean Early Adopters right?
You didn't mean to imply that Apple is the only company that lowers their prices on first-run products shortly after market launch, did you?
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Yes, I don't feel like I've been short-changed because I too have thoroughly enjoyed my iPhone. It's just that this has been handled quite crudely by Apple and will just further convince people to put off buying new Apple products. Honestly, I'm not about to buy an iPod or have my father upgrade his iMac until Jan '08!
Fool me once, shame on you. Fool me twice, shame on me.
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Apple has always had bloated hardware prices. Up to now, they've been ok with a tiny market share for whatever reason - mostly because they like making "pretty" computers.
Now in the mobile market, they have to be practical about mobile handset prices. Let's not be blind to the fact that most handsets are sold at about cost to suck you into a contract. Apple was making a huge margin at first, and now it's going to come down to near cost, just as was predicted.
Maintaining high prices isn't "love" you weird mac-heads. Getting more Apple products in more hands is more important, and despite your wishes, your club is going to get a little bigger.
Imagine if Mac OSX was available to all... AAPL 300 here we come.
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IMO those faithful apple fanz that feel cheated should not complain. if you stick your hand in fire you get burn and complaining later "i stuck my hand in fire and got burn" it just looks rediculous.
you got burned? really? WTF did you expect? or more correctly how did you expect to not get burn?
the answer to "Apple screwed you: So now what?" question would be "suck it up!"
i'm not anti apple (or Sony, or MS or whatever), i'm anti stupid, unreasonable, ground-less brand loyalty. it is beyound me why some peps will stick and chear for a brand and refuse to look around even when that brand constantly treats them bad (purging the unhappy from forums , etc)
sad.
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I actually don't feel "undercut" at all, I've loved my iPhone ever since I got it. Its like Jobs said, "that's technology." It was going to happen sooner or later. Its not like I can go back and not buy my iPhone and jump back to yesterday when they cut the price. So no use crying about it.
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i'm glad you like and enjoy your iphone or whatever product you buy (no sarcazm here) as that IMO is the point of earning money - spend it on something that will bring you something worthy (satisfaction in this case) in return.
however mr, Jobs here is pulling your leg again. contrary to what he said it is NOT technology - it is pure Marketing in the worst meanng of this word.
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Indeed, it's marketing. Wonderful thing isn't it? If you look at it from a distance, it's almost like all the people who fall for it, get hyped up, *have* to have the latest 'hot' thing from 'Brand X' have some resemblance of lemmings...
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"If you didn't think the iPhone was worth $600, why did you buy it? If you thought it was worth $600, what are you complaining about, you got the value you expected."
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I'm not an MS Fanboy, but this is hilarious. hehe
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8gb = 8$
cell= 100$
2mp cam= 50$
Iphone= 158$
Iphone+one stup*d lo**er=600$
You have paid the correct price.
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