During the Apple press event on the fifth of July, 2007, Steve Jobs announced that the 4GB model of the iPhone was going to be discontinued while slashing the price to the 8GB iPhone to $399. The act of lowering prices to reflect the changing cellphone market only makes capitalistic sense. Well, a lot of Apple iPhone owners and early adopters did not like this news.
Steve Jobs received so many emails from irate customers, that he promptly issued an open letter. This open letter discuss the ever changing technology market, pricing structures for the changing conditions and what Apple is going to do about the complaints. Apple will begin offering a $100 credit for products both online and in the physical Apple Store.
This may be one of the first times in the entire technology industry that a CEO of a company apologizes for reducing prices on a current product, explains the situation and then takes action to appease its current customers. Only time will tell the reason why Apple reduced the iPhone cellphone price. If the timing is right Apple may introduce the 3G model of the iPhone at the end of September for European markets. Apple could then increase the memory on the 3G iPhone to 16GB and then charge $599 for the new model. Via Tuaw.
September 12th, 2007 at 9:22 am
[…] The reduction in price has made a lot of early iPhone adopters upset, so in a move not seen often, Apple credited $100 to purchasers for use in the Apple […]