Letter from Steve Jobs

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


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http://www.apple.com/hotnews/openiphoneletter/

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In case you didn't know, Apple lowered the price of the iPhone by $200. iPhone buyers after August 23 are entitled to a refund to match the new prices.

Early iPhone buyers sent him angry emails demanding a refund.

WHY??? EVERYONE knows that technology drops in price after a couple of months and then sink after a year. Granted, this is a dramatic increase, but with the release of the iPod Touch that looks like the iPhone-- people will ask themselves "why not just save up a lil more and buy the phone instead?"

Back to my point-- they're stupid for even asking for a refund. Should I ask for a refund for my Nintendo 64 that I paid $200 for?

I applaud Steven Jobs for his letter and effort to please Apple users.

Ace, yes, it is true that technology changes and prices change with that. But them doing this was a complete joke.

Technology does not change in two months. You and I both know that every product they announced yesterday could have been rolled out two months ago as well when they released the Iphone.

They purposely kept the Ipod touch screen under wraps so people would rush out, break their contract and jump to AT&T (which has the worst service in the cell phone industry, based on every industry study out there), to get the Iphone. Now they have the nerve to actually cut out one of the models of the Iphone just 2 months after they released? And then on top of they, they release a product which would have satisfied the people who did not want to break their contracts with the other carriers?

This is totally outrageous and indefensable.

True Patrick, but here's the thing.

Those that bought the phone early KNEW it would go down in price. It doesn't matter when it goes down because they opted to pay $600 for it.

What Apple did was smart marketing and it will not affect their sales in any way.

True Patrick, but here's the thing.

Those that bought the phone early KNEW it would go down in price. It doesn't matter when it goes down because they opted to pay $600 for it.

What Apple did was smart marketing and it will not affect their sales in any way.

Yes they knew it would not drop in price, but NO cell phone company has ever dropped a signature model phone after only 2 months of release.

They complete screwed the early people getting the phone, knowing full well the other models and Ipods were coming out.

Yes they knew it would not drop in price, but NO cell phone company has ever dropped a signature model phone after only 2 months of release.

They complete screwed the early people getting the phone, knowing full well the other models and Ipods were coming out.

Actually.. check Razr's major price drops and they are, while not as dramatic, pretty close. It's a risk anyone takes when buying new technology. Also, if they listened to the Keynote, they would have known the price would drop SHORTLY after release.

Actually.. check Razr's major price drops and they are, while not as dramatic, pretty close. It's a risk anyone takes when buying new technology. Also, if they listened to the Keynote, they would have known the price would drop SHORTLY after release.

But the RAZR's price drop did not come 2 months after the initial release. And also, Moto did not release another product almost exactly like it and then discontinue the original RAZR 2 months after its release.

This would not be an issue at all if it was just a product we are talking about. But when it deals with having to sign a 2 year contract, plus breaking a previous contract, to get that product, that is where the issue comes in.

Until the FCC gets off its ass and unlocks all phones so they can be used on any carrier (like they are in Europe), there has to be some type of consumer protection on issues like this.

Apple didn't force anyone to break a contract. This is a choice the consumer makes for having the latest and greatest!

If people feel the need to rush out and buy the newest, greatest gizmo at the time, They should pay stupid money for it......

Smart people wait for a few months.....Big savings....$$$$$$

I would refund them NOTHING

Apple didn't force anyone to break a contract. This is a choice the consumer makes for having the latest and greatest!


I would agree if we were just talking about a product.

But when you attach that product to someone so integral to everyday life (like a cell phone), then the consumer must have some protection against companies pulling this crap.

Pulling what crap? Lowering the price?

The iphone is NOT obsolete, it is not suffering any changes.

Pulling what crap? Lowering the price?

The iphone is NOT obsolete, it is not suffering any changes.

Not disclosing that another product would be released that is exactly like the Iphone without the phone.

How many people you think would not have broken their contracts and jumped to crappy AT&T if they would have known they could have had the new touch screen?

And if Apple were that confident in the Iphone, why not release new the touch screen Ipod at the same time and give the consumers a choice?

And yes, they did discontinue one of the original Iphone models when they lowered the price.

Anyone who dumped a cell phone carrier and got locked into a 2 year contract JUST to have a touch-screen iPod is an idiot to begin with.

That sounds like a letter from Bill Gates. We screwed you but it was for your benefit

I still don't see the screwing. Anybody that has bought a cell phone in recent years understood that they were paying A LOT more than the norm for a cell phone. They bought into the hype...waited in line to be the first to get their phone/mp3/pda. They got it....a lot gloated about it.
Now they are ticked because the hype died down....which it always does....so the company lowers the price...which they all do(just maybe not so soon). It's hard to predict when a super hyped product will suddenly become just another product.

personally, i just couldn't see paying to break my contract...signing a new 2 year agreement with a cell phone company i've never used and that makes my old cell phones useless...paying $600 or even $400 for a phone thats useless if i dont like the provider.

my wife saw a car at the auto show that was just coming out....she loved it....had to have it....and ordered it right away...no haggle pricing.but she needed a car now...guess what.....if she would have waited a few months until the cars were sitting on the lot....she could have gotten a rebate...no haggling....just a lower price....can you believe that?

I think it was nice of Apple to save face and give a rebate. I still think the price is ridiculous.

Think of it like this: If you bought a top of the line computer today, you would probably pay several hundred more than if you waited a couple of months and bought the same model. I haven't seen any rebates from Compaq lately, have you? ;)

Seems like sour grapes to me...

Not disclosing that another product would be released that is exactly like the Iphone without the phone.

How many people you think would not have broken their contracts and jumped to crappy AT&T if they would have known they could have had the new touch screen?



I find it hard to believe that anybody signed a 2 year agreement for cell service and paid $600 just so they could have a 8 mg touch screen ipod.

Seems like sour grapes to me...

exactly....kind of like, "hey i got screwed....so should they!"

People have a hard time grasping that the price on the iPhone will not emulate the same price patterns that most cell phones have.

The iPhone is marketed as a computer with a phone with it. While Blackberry and Treo do the opposite. They market this as a business phone with useful PDA features; whereas Apple has marketed the iPhone as a tool used for business or leisure that can also make phone calls.

Watch the commercials, they show you everything it does and at the end they do the "oh yeah, it also makes phone calls" bit.

Referring back to Dan's post, most will agree how quick computer prices drop. Sometimes months, sometimes weeks. The iPhone will follow this pattern-- watch and see.

I find it hard to believe that anybody signed a 2 year agreement for cell service and paid $600 just so they could have a 8 mg touch screen ipod.

I actually know 3 people who did (and no, I am not one of them I have always stated how much I hate Apple products, and could not bring myself to buy one even when I posted I was going to)..

THIS IS TOO FUNNY!!!

From Woot.com:

To all Woot customers:

I have received more than three emails from Zune buyers who are upset about Woot dropping the price of the Zune by $20 one month after it went on sale the first time. After reading every one of these emails, or at least scanning their subject lines, I have some observations and conclusions.

First, I need to make a better effort to hide my email address.

Second, I am sure that we are making the correct decision to lower the price of the 30GB Zune from $149.99 to $129.99. This confidence is based on more than the holy doctrine of corporate infallibility. The Zune is a breakthrough product, and we have the chance to “ride the lightning” and “shoot the curl” this holiday season, not to mention “kill the messenger” and “rock the vote”, further enabling us to “pay the rent” and “keep the lights on”. It benefits both Woot and every Zune user (but especially Woot) to drag as many new victims as possible into the Zune “dungeon”. We strongly believe that misery loves company this holiday season.

Third, being in technology for 1+ years, give or take a year, I can attest to the fact that the technology road is bumpy. There is always some idiot changing lanes without signaling, and the potholes never seem to get fixed. If you always wait for the next price cut or to buy the new improved model, you’ll never buy any technology product. I mean, why should you? Truth is, you don’t really need any of this junk. We’re afraid you’ll catch on to that fact and overpaid frauds like me will have to go back into fields like telemarketing and burrito construction. Fortunately, most of you continue to languish in a consumerist stupor, wallets spread wide for us to plunder as we please. The bad news for us is that if you buy products from companies that support them well, you will receive years of useful and satisfying service. But we’re hoping you’ll buy from Woot instead.

Third-and-a-half, even though we are making the right decision to lower the price of the Zune, and even though the technology road is, like, this total Deathrace 2000-type scene, we need to do a better job taking care of our early Zune customers, at least until we find a private security firm we can afford. For some reason, our early customers trusted us. We must live up to that trust with our actions in moments like these, lest you turn off the money spigot that maintains our decadent lifestyles. These peacock-egg omelets and mink-lined Jacuzzis don’t pay for themselves, you know.

Therefore, we have decided to offer every Woot customer who purchased a Zune from us on August 22, 2007 (or in the last Woot-Off) a $10 Woot credit towards any Woot order of $40 or more, before shipping. If that’s you, just enter the coupon code BUMPYROAD while making your purchase, and boo-yah: you’re mayor of Discount City. This discount applies to any Woot site, including Woot.com, Shirt.Woot, Wine.Woot, Sellout.Woot, and Beets.Woot. It doesn't expire, so feel free to check back everyday 'til you find something that will temporarily fill the void in your soul. You may use the coupon as many times as you bought Zunes. So, if you bought one Zune from us back in August, you can use BUMPYROAD once; if you bought two, you can use it twice; and so forth and so on and what-have-you. But you can only use the discount once on any one order. We make this decision with every confidence that most of you will never want any of the crap we sell anyway.

We want to convincingly pretend to do the right thing for our valued Zune customers. We’d apologize for disappointing some of you, but we long ago lost the capacity for sincere remorse. We will continue to do our best to trick you into having high expectations of Woot.

Larry Stalin
Woot CYA Officer

Warranty: One year