Jobs Apologizes, Apple to Give iPhone Customers $100 Credit

By the Betanews Staff | Published September 6, 2007, 3:34 PM

Responding to a large amount of negative feedback from existing iPhone customers who felt slighted by Apple's decision to lower the price by a third to $399, CEO Steve Jobs apologized Thursday and said the company will offer a $100 credit for purchases from Apple's retail store or online store.

In an open letter to customers, Jobs said it was the right decision to lower the price because "now it will be affordable by even more customers" in time for the holiday season, adding that in the world of technology there will also be an upcoming price cut or product update. However, he acknowledged that Apple should have done a better job taking care of early adopters. "Our early customers trusted us, and we must live up to that trust with our actions in moments like these," Jobs wrote. Details of the credit are still being worked out and will be announced on Apple's Web site next week.

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No matter what you think of the iPhone that's a great marketing ploy - very smart.

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Did anyone say "fanboy" yet?

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Okay, you've gotten a taste of what Apple's margins are. (You should have known all along. Don't you read tech news?) However, those of you who are even the slightest bit happy about the $100 voucher really need to take those blinders off.

Jobs gave you nothing! The bottom line is you have to spend a good deal more than that $100 to even take advantage of it. Jobs shafted you again with the voucher and you replied, "Thank you!" (That was right after you bent over when he told you to.)

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That's a a coupon. a $100 coupon.

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That's what I said. The words are synonyms.

Ref.: http://thesaurus.reference.com/browse/voucher

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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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If this were a book, it would be titled "Whiners and dumba**es"

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We value our customers, so in response to your whining, we are going to do the right thing for you-- give you $100 of the $200 price drop. We'd give you the full $200, except that we're just as greedy for cash as any other corporation, and after all, you're just a bunch of whining hippies.

What a sucker Jobs must be. I can't remember a single time that a company gave a refund because of standard business practice in dropping price to attract new customers.

He should have simply said, if you want a cheaper iPhone, sell yours on eBay like everyone else and go buy the cheaper version.

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Why complain about a price cut? Will the fanboys applaud and praise Jobs if there was a price increase on the already and still expensive brick?

I agree with Jobs, its just the nature of technology and inflation(meaning inflate the price of a new technology product). But he should have done the price cut during the launching of the phone instead of months after.

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That's not the way it works.

It's just standard business practice to drop prices once the initial "WOW" factor wears off. Doing so attracts new customers, and when you eventually drop the price to half its original price it's because you have a new model on the way. Companies have been doing this forever and a day.

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Apple never does this. They drop prices to a point, introduce higher end models, and eventually stop selling the original item. By this measure they never lower their prices to some predetermined level.

You want a cheap apple product? buy it second hand. Apple has a high profit margin. Gotta pay for those silly condescending ads somehow.

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This is how the good shepherd herds his flock of sheep.

What I don't understand is how/why people who sucked up the iphone like poisoned rats drown themselves with water now complain and feel 'slighted' by the price drop - it doesn't make sense. I remember tons of Appleites defending the price "R&D costs so and so", "Innovation costs alot", "New designs demand a premium", blah blah blah blah, now these SAME people, who paid this 'premium' to buy this marvellous device are complaining about the price drop....interesting.

It all seems premedidated to me....They knew they were releasing the Ipod touch....they knew the pricepoint for the touch beforehand. And they didn't think $600 was 'too much' a few months ago, so why the sudden change of heart? In fact, last I heard sales were 'booming' right?

They knew they'd be competing with themselves and now they don't want people to choose between the ipod OR iphone, they want people to choose the ipod touch AND the iphone. Shelling out $800 can't be too horrible for people willing to shell out $600 for an 8gb phone+ipod - so they tested the waters, it felt great and now they're lowering the price 'for the holidays' so that both products are 'attainable' for the 'majority'.

Noone can deny that Apple has some very smart marketing schemes.

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How exactly do you know they are the "same people"? Its just a group of random people saying one thing and another group of random people saying completely different thing.

Anyways, i have to agree with you. I think its safe to say that its a well know fact that new "toys" are more expensive in the beginning and will get cheaper in time. For some reason this came as a surprise to people who bought iPhone.

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"In related news Apple store prices increased 20% overnight. Apple CEO Steve Jobs was quoted saying 'I meant to say technology AND inflation happens.'"

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What in the hell are you blabbering on about?

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Explaining humor is dull.

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What was the mistake? They put a phone out for a certain price, then they lower the price. Wow now that is unusual. So does that mean if I bought my phone for 50 dollars 6 months ago and now its free I should be given a 50 dollar credit to make up for it? What the heck? Yeah it would suck if I bought it for 600 dollars now you can get it for 399, but that doesn't mean you got screwed.

Computers, cars and numerous other electronics are the same thing. Plasma tv's 5 years ago were 10k now you can get them for a 10th of the price, should they be givena credit to and an apology? I mean what the heck people.

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Apology accepted, now why did you make such a obvious big screw-up in the first place?

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Fascinating ---- so in your world, nobody is EVER allowed to make a mistake?

I was really pissed when I first found out about the price drop but I'm extremely impressed with Apple's offer to compensate --- even though I generally pooh pooh "vouchers" that can only be spent in the merchant's own stores.

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By the way, what was the "obvious" screw up? Dropping the price so quickly, selling it at the higher price from the beginning, not offering the compensation immediately, or something else?

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Probably some execs needed more coke money at the time, and maybe their wives needed some cosmetic surgery too.

Stupid to apologize. It's like, i charge you X amount for a telephone pole, ram it up your rear, then come back later, and give you a credit so you can purchase a baseball bat, but only if i get to ram that up your backside also, and then apologize that the telephone pole was so big and painful.

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"I was really pissed when I first found out about the price drop but I'm extremely impressed with Apple's offer to compensate"

Wow, you went from pissed off to impressed in a matter of hours. Apple sure has you people by the balls don't they!

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Maybe it wasn't a mistake, they could have been trying to find out how gullible their fanboys actually are.

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I didn't say I still wasn't pissed - I said I was impressed with what Apple is doing to help people feel better - they didn't HAVE to do anything - it would not have really impacted them long term (people have short memories).

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Given the uproar the fans let out, im fairly sure you can work that out on your own. Sounds like your one of them?

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No, people can make mistakes.
I forgive you for making the mistake that i have a world where noone is allowed to make mistakes.
Whats that?...
Apology accepted

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Thank you i feel informed

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You used the word "obvious" ---- I want to understand what you MEANT by "obvious"

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Impressed with apple's response? With Apple's profit margins, what do you think that $100 store voucher actually costs them? How many people will spend far more than $100 dollars when the go to redeem the voucher?

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After all this price cut outrage. I'm pretty sure that if Apple unveiled iPhone 2.0 tomorrow, those same idiots would be camping out in front of the stores to get ripped off again. And two months later Steve Jobs will give another heartfelt iApology and all will be forgiven.

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No kidding.

These fanboys are really moronic.

Early adopters ALWAYS get screwed, that is the nature of the beast. period.

Fanboys will be fanboys, and they will be back inline next time...just waiting to be ripped off again.

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so jobs basicly admits he ripped off all of you who bought an iphone.

well atleast he admits it

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Exactly. It's not like MS is giving you a cash-back on the POS that is Vista.

Vista is to XP like ME is to 98.

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This has absolutely nothing to do with Microsoft, its products, or its business practices. Nor is there even the slightest bit of comparison here.

This site needs a [Mark as Troll] button (and a [Mark as Spam] button).

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Way to bring up Microsoft like an Apple fanboy douchebag.

This has nothing to do with Microsoft, so move the hell on and keep whining about your iCrap that you got ripped off on.

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No, I think Jobs basically admits that early adoptors weren't treated well when they decided to change their pricing and he's now gone and done something about it.

Think about it - you can't argue that he ripped people off initially....people did not HAVE to buy the iPhone if they didn't want it. They're clearly entitled to change their pricing any time they want to. Granted that I was as pissed as anyone about it but it's certainly not the first time that a company has changed their pricing, although Apple may have beaten the record --- interesting question is how long do you think would be an acceptable time frame after which point you would not feel ripped off when the price dropped?

Real ripoffs are when companies bring out new products and completely stop supporting the old stuff and you're left stuck (Sony comes to mind as a prime candidate)

How do you feel about the fact that a car loses a huge percentage of its value the instant you drive it off the lot?

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hey you can call it what you want, it is what it is, not vary often is a tech product like the i phone, price reduced so quickly.

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Word.

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http://img222.imageshack.../2149/10780926753ua.jpg

MS Word.

Write letters N' s***, yo.

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Geeze, I wonder if I can get a rebate from Sears for my first VCR that cost over $500? Or from Toshiba for my first DVD player that I just had to have back when there were like all of 50 movie titles to choose from? Maybe Intel could give me some credit for the $400 I paid for that lightening fast Slot 1 Pentium III that ran at a blazing 550 Mhz.

Then again, Apple fanboys have never been the brightest bulbs in the box. There were only dozens of pundits and analysts screaming for folks to wait until the price and hype died down.

Reminds me of the story I read about the woman who paid some guy like $1,000 for his spot in line outside a NY store, then was upset to see later that he had gotten his phone anyway. Seems the store had plenty to go around!

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Well 2 months is pretty quick.
And it was a rather large price drop.

6 months and a smaller drop people wouldn't have complained as much.

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6 months and a smaller drop people wouldn't have complained as much.

Sorry. They agreed to pay a certain price for a certain product.

That's called a sale.

If they didn't like the price to begin with, they shouldn't have bought it. Instead, they have grown some asinine sense of entitlement that, sadly, Apple has now re-enforced.

Way to go, Jobs. You just re-enforced the deluded sense of entitlement of yet another generation of spoiled cry-babies. Here's your ticket to DisneyLand.

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I have to agree. $599 was not too much then, why is it a big deal now? You spent the money...deal with it.

It sucks but oh well, that is the price you pay as an early adopter of any technology.

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*Pfft*

Don't have a go at me. It's how it works.
People complain when they feel stung.

My post is all true.

People feel a right to entitlement as a whole. Goodness knows why, but that's how it is.

If you don't want people to complain you do what I said and leave it for longer and don't drop it by quite so much.

It was a bad decision because it affected their stock 2 days running.

Sometimes I think you just step slightly too far over the cynical line to realise what is and what isn't good business sense.

Customers are what give you work and money.
Don't screw them about.

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I think its simple. Many of these people would have waited 2 months had they known a drop was coming.

As already said, it was a very short time and quite a big drop. That's very unusual. If 6 months had gone by or it was a smaller drop, I don't think people would have had a right to complain.

I think most realize you will pay more up front, but usually the wait time for paying less is much more significant.

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Precisely.

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So six months is the magic number? what about the people that bought one two months before the six month drop? Should they get "credits"?

If you feel ripped off, take away this lesson....don't be an early adopter. Wait until the price drops...it almost always does within a year. And even if the price does not drop, the vendor will have a chance to work out any kinks that made it through to production.

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"It's how it works"

No. It's how it's broken. When people pay a certain price for a certain product, end of story. The fact that Jobs caved does not alter that simple fact.


People feel a right to entitlement as a whole. Goodness knows why, but that's how it is.


So we should just accept that our society is apparently made up of spoiled children and not deal with it? Good idea. I'm sure it's just a phase...

Sometimes I think you just step slightly too far over the cynical line to realise what is and what isn't good business sense.

Business sense!=common sense.

Customers are what give you work and money.
Don't screw them about.


They paid. The got their product. How exactly were they screwed??

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I think its simple. Many of these people would have waited 2 months had they known a drop was coming.

Can I borrow your crystal ball?

Doesn't matter. They gambled. Buyers remorse sucks, but it doesn't mean you have the right to a refund or credit.

That's very unusual. If 6 months had gone by or it was a smaller drop, I don't think people would have had a right to complain.

I think most realize you will pay more up front, but usually the wait time for paying less is much more significant.


...and if it was 6 months, everyone would be saying it should have been 8... The problem isn't the timing, it's the grossly overblown sense of entitlement Apple caters to.

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Good posting, PC-Tool. Couldn't agree more with your remarks.

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That hurts, man.

Really. I thought I could depend on you, and now this. How disappointing.

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They perceived themselves to be screwed and would have thought twice about buying another Apple product and were having quite loud fanboy hissy-fits.

"So we should just accept that our society is apparently made up of spoiled children and not deal with it? Good idea. I'm sure it's just a phase..."

Yes. If you're a business person it is expected to be that way. If you don't bow to the customer the customer will walk away (unless you have a very, very good product).

I don't think it should be that way, but yes, you have to put up with it.

"No. It's how it's broken. When people pay a certain price for a certain product, end of story. The fact that Jobs caved does not alter that simple fact."

Meh. I said the same thing really. It shouldn't be like it is, but it is.

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Yes. If you're a business person it is expected to be that way. If you don't bow to the customer the customer will walk away (unless you have a very, very good product).

*laughs*

So Apple doesn't have any very good products?

Sorry. You just killed your own argument. They might have a lost a very few customers, but not enough to make a noticeable dent in the bottom line.

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Heh. They do, but the iPhone isn't one of them as far as I'm concerned.

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You and me both, but we'll see....

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Is it still possible to return the iPone for a full refund?

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If you're within 14 days of purchase, yes.

If not, go to an Apple store and raise hell. You'll soon get your money back if you're loud enough.

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I doubt it you will get your money back. Most likely you will get store credit. However, you still stock with a 2 years at&t contract.

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That's a good point. I don't care for a iPhone, but if that happened to me I'd probably try and return it and buy another one for $200 less, instead of getting $100 less and having to buy more iSh!t.

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"In an open letter to customers, Jobs said it was the right decision to lower the price because "now it will be affordable by even more customers" in time for the holiday season, adding that in the world of technology there will also be an upcoming price cut or product update. However, he acknowledged that Apple should have done a better job taking care of early adopters."

Let me re-write that paragraph for you.

In an open letter to customers, Jobs said it was the right decision to lower the price because "now it will be affordable to even more customers" in time for the holiday season, adding that in the world of technology there will always be an upcoming price cut or product update. However, he acknowledged that Apple should have done a better job of taking care of early adopters.

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Actually Steve should apologize to the Apple shareholders. Since their less than smart move caused Apple stock to go down 2 days straight.

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Yea, this just doesn't make much sense. I mean, you had to expect prices to come down but I wouldn't have expected them to come down this soon. As stated already, if you are an early adopter, then you have to expect to pay more. Apple is just taking it because the Apple fanboys are being whiny babies and they are afraid the lot would revolt and those that buy anything Apple would stop.

Not that I don't want an iPhone, as from what I've seen its awefully sexy, I'm just saying.

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Okay. We agree on something.

I'll buy the guns. We'll meet at dawn.

10 paces... you know the drill.

Can't allow something like that to continue, eh?

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You know what, I know a lot of people that might be called "apple fanboys" that bought the iPhone the first day and although all would have loved to save $200 right away, none are complaining now. They all say its their "early adopter fee" and have accepted the price. I think its the non-"apple-fanboys" that are probably complaining more.

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I agree with jessshaun, it's not enough. It's a $100 credit for purchases of other too high priced products, and it's not a check. A $100 credit for purchase is actually about the same as a coupon on your next purchase of about $15. Plus, it gets you back in the store, and that's what they want...you back in their store, or back on their website.

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I don't think they should have offered ANY credit.

The fools wanted one first. They paid the price.

Tough.

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The "gotta have it now" tax.

They could have waited. They spent the extra $$$ so they wouldn't have to. When's Apple going to give those who waited 2 months their 2 free months, eh?

You pays your money, you takes your chances.

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Please explain how a $100 credit toward your next purchase is the same as a coupon for $15 off your next purchase.

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The laptop I am typing this on is now $300 less than when I bought it. Electronics always come down in price. The RAZR was $500 when it first came out. Look at the prices on big screen TVs compared to last year. Boo Hoo. If you buy something when it first comes out, you will pay more.

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Yeah, but it usually takes 12 to 18 months before prices go down, not 2 months.

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And?

The only ones complaining are those daft enough to 'need' one first.

They really 'need' to sort their heads out.

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No argument there in fact the they should have cut the price by 50%.

My point was that normally a price cut like that comes about a year later. At least for any company that wants to keep their costumers.

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Erm...

I really don't understand what all the fuss is about.

Okay, so the price has been cut. This happens every day with all kinds of products.

Those idiots that queued up all night/for days so they could get their hands on a phone (good gawd) made a choice. Whether or not the price dropped now or in six months time is irrelevent. The fact remains that prices DO drop.

Do they complain when they buy something and then it goes down in price in the sales a couple of weeks later?

Get over it. You bought something as an early adopter. The price has now come down. As a result, more people can afford it. Or is that really whats behind all the tears - the fact that its no longer as 'exclusive' as you thought it would be?

Stupid enough to pay $600+ for a phone? You should expect everything you get. Quit bleating. I wanted one too, but not enough that I'd pay that amount of money - and I'd certainly never queue up at midnight to get one. That's just plain stupid.

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what would anyone expect ? apple has created a mini revolt and now its damage control time . with the battery debacle looming and a less than adequate cellphone provider apple has chosen $$$ over customer satisfaction . perhaps now all you apple fanboys will stop bashing m$ as much since your lord and savior is using the same handbook as the man in redmond does

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I don't remember Microsoft giving Xbox 360 buyers a $50 credit for buying two months before the recent price drop. Or Sony giving PS3 buyers a credit for buying before the 60GB model dropped in price.

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"perhaps now all you apple fanboys will stop bashing m$ as much since your lord and savior is using the same handbook as the man in redmond does"

Hey at least M$ read the chapter on using KY to make it less painful and more pleasurable. LOL

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Customer satisfaction? So are you saying that lot aren't satisfied with their phones anymore?

All they are complaining about is the fact that a few more of us can afford it now - and that they have made themselves look like complete idiots for shelling out as much dosh as they did.

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And neither should they need to.

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Exactly.

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I still don't understand why you keep trying to justify a 33 percent price drop TWO months after a device's release. It's practically unprecedented.

Let's face it... Apple was hitting that brick wall I kept telling you about. But a $100 credit to their store? Come on now, that's like saying "sorry we made you pay $200 more, but here's half it back, although you still have to spend it with us."

Sheesh. Like I said. $599 was overvalued for this phone. Nobody can justify to me why the phone cost that much.

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the customer satisfaction part is a 300 charge battery that cant be replaced by most consumers and a less than capable cellphone provider who has to give apple a piece of their pie

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Sheesh. Like I said. $599 was overvalued for this phone. Nobody can justify to me why the phone cost that much.

Everyone has their price. Everyone has a subjective view of what gives them "value". The fact that you wouldn't pay the premium did not, obviously, mean no-one else would. Many did. Perhaps not as many as Apple would have liked, hence the price drop, but the people who paid for it lost their right to haggle the price once they did.

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Not enough. I personally don't want one at all, but I would never settle for less than a $200 check sent to me to equal the price cut.

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Well, if $599 was too pricey for you before, then you probably would have purchased the $499 4GB model. Thus, you really only lost $100 with the price drop.

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Well, that's a good point, but even if you purchased the 4GB model before, now you have half the storage at the same price.

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stop ur crying. you obviously thought the iphone's value was worth $600. You felt it was worth paying $600 for the phone.

That has NOT changed. You still have the product that you felt was worth $600.

Now that other poeple get it cheaper, u all of a sudden DONT think the phone is worth $600?

ur a crybaby, ALL of you are. Greedy whiny a** crybabies.

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That's the right thing to do. I know if I were an early adopter I'd sure feel shafted by a price cut like that, and I'd sure hesitate before ever buying a new Apple product again. But then again, I'm not an Apple fan boy so what does my opinion matter?

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