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Steve Jobs: IPhone Rebate Letter
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To all iPhone customers:
I have received hundreds of emails from iPhone customers who are upset about Apple dropping the price of iPhone by $200 two months after it went on sale. After reading every one of these emails, I have some observations and conclusions.
First, I am sure that we are making the correct decision to lower the price of the 8GB iPhone from $599 to $399, and that now is the right time to do it. iPhone is a breakthrough product, and we have the chance to 'go for it' this holiday season. iPhone is so far ahead of the competition, and now it will be affordable by even more customers. It benefits both Apple and every iPhone user to get as many new customers as possible in the iPhone 'tent'. We strongly believe the $399 price will help us do just that this holiday season.
Second, being in technology for 30+ years I can attest to the fact that the technology road is bumpy. There is always change and improvement, and there is always someone who bought a product before a particular cutoff date and misses the new price or the new operating system or the new whatever. This is life in the technology lane. If you always wait for the next price cut or to buy the new improved model, you'll never buy any technology product because there is always something better and less expensive on the horizon. The good news is that if you buy products from companies that support them well, like Apple tries to do, you will receive years of useful and satisfying service from them even as newer models are introduced.
Third, even though we are making the right decision to lower the price of iPhone, and even though the technology road is bumpy, we need to do a better job taking care of our early iPhone customers as we aggressively go after new ones with a lower price. Our early customers trusted us, and we must live up to that trust with our actions in moments like these.
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.
We want to do the right thing for our valued iPhone customers. We apologize for disappointing some of you, and we are doing our best to live up to your high expectations of Apple.
Steve Jobs
Apple CEO
Comments
I guess I'll take the 100 bucks to sore credit but cash is what we should get
Why should you get anything? This is generous compared to the thousands of other products that this has happened to. You have to have the "latest and greatest" also you've come to expect to pay for it as well. I might concede that it shouldn't be that way but you had to have it and were willing to pay the price.
Early adopters were well aware that the iPhone's price would drop just like the price of nearly every new gadget that preceded it. But a $200 drop after a mere two months? That time period might be unprecendented for such a drop (33% off). Jobs is savvy enough to keep the cash as credit. After all, $100 is a good start toward a new iPod or iPhone for the holidays. Driving holiday sales: That was the plan all along, wasn't it? -Brian
well being able to spend the hundo at itunes would have been more useful.
steve, i did trust you, you are right, i trusted you when you said the keyboard would learn my typing style "in less then a week ill be typing as fast as any touch key board"
its been months, the key board sucks, and i am a girl, i cant even imagine what men with bigger fingers must be suffering.
and the real insult is the remedy is so easy, landscape key board option....LANDSCAPE KEY BOARD.
bigger keys, easy cradle hold for two thumbing, and better visibility.
i trusted you on the "state of the art speaker" too, silly me, my pda from 3 years ago had a better speaker.
i heard this word today "itard"..yep thats me, i am an itard for trusting you.
however i wont be buying more apple stuff from here on out.
and when folks ask how i feel about my iphone ill just keep telling them the sad truth it is the sexiest adress book i ever bought.
This is great PR! The $100 store retail probably only costs them $40, and throw in the co-op funds, accessory guys buying up store space in the Apple Stores and it's probably less. Most people will spend more than $100 in their stores, easy.
Paul Lopez
http://lopezunwired.com
I think the $100 "rebate" is only to get us to buy more Apple STUFF. Some think we should like COOl, but jest because its new and small HIGH price is only good for Apples Profit and Sales Numbers. When you few the attitute in NYC 5th Ave. I only wish trhat their stock will tank baddly
"Disappointed," I could be wrong, but I believe they sell iTunes gift cards at Apple Stores... -Brian
Dear Steve,
Your letter and offer of a $100 store credit is not what customers who spent top dollar only two weeks ago are waiting to hear. Sure, technology is a bumby road, but that does not keep people like myself from feeling burned... no scorched.
I have a suggestion that would appease me and I'm sure countless others: offer the $100 store credit as you suggest then offer another $150 coupon toards the purchase of an Apple product of $750 or more to be used before December 25th 2007. This totals $250 ($50 more than the price difference which will make people smile ;-) and it is a win-win for you: you keep loyal customers and you sell more Apple products.
JasonW
JasonW, Everyone will be smiling with the exception of Apple's shareholders. Early adopters ended up paying an extra $100 to have the iPhone for two months before anyone else. As has been stated before, while lowering the price so quickly was unprecedented, so was the amount of hype surrounding the device's launch. Your suggestion indicates that you think iPhone's early adopters should pay less than the latecomers, why? -Brian
I have no idea what this forum is, I came across it on a random search. I bought the iPhone on the launch day. Within three hours could type like mad ( unlike our friend above who still can't type... maybe the problem isn't the phone... ), I've had no problems. Sure it hangs every once in a while, but hold down the menu button, then jump back into the program. It's technology. I agree with those who said it's a marketing ploy to get us to spend more at the Apple store, but guess what, it's a hundred bucks you would probably spend anyways, and if you don't want to spend more than $100, buy a Shuffle. If you thought your $600 iPhone was gonna be the best thing in the world forever with no price drops or newer models coming out, you were mistaken. Yes it was a marketing ploy. Yes it's unprecedented. Yes, Steve Jobs wrote that letter 6 months ago and it came as no surprise. But... Yes, it's also great that they are giving money back and supporting the early adopters. And guess what, it's still the best Phone ever. For real.
Hey - Ben -
If Steve Jobs realy wrote this letter month ago then this is consumer fraus.
If you know that something you sell will drop the price by 33% after 2 month because of marketing reasons you are obligated to reveal this information to the buyer. He can then decide if he wants to pay the premia for being the first user or maybe he wants to wait.
In any case - if they new and didn't tell - this is ground for legal action against the company and I wish to god some smart greedy lawyer takes them to cort and drop this arogant company back to where it came from. Steve jobs should go to jail if he planned this. I am starting to miss the old nerds at Mirosoft.
when you type all you have to do is finish the word and when you hit space the iphone auto corrects the word to what you were meaning to spell... it words flawlessly for me and i am a man with really big fingers



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