Friday, September 7, 2007

Steve continues to establish iPhone's world domination

Imagine my surprise, as a recent iPhone convert, in reading in the Wall Street Journal online that Apple has announced a dramatic $200 price drop. Imagine my delight at their announcement of a $100 credit for us early adopters ($200 for those who bought within the past 14 days - since these all could simply return the phone).

As observed by my friend Jeff, the price drop is a good move in that it preserves and even builds more good will and repositions itself into a price bracket for the next wave of adopters who've balked at the steep price, but who wanted the phone. I am curious, however, at the early drop in price. I'm wondering if this signals that there was less early adoption than predicted given the slower-than-expected sales.

Some have expressed anger at the drop in price. (Nokia attempted to capitalize on perceived frustration with a Google ad campaign. yawn.) I don't understand this at all. When I made the decision to buy I fully understood the price - and knew that there would come a time in the very near future when Apple would announce a new, bigger, better version. A price drop was surprising since Apple generally preserves price points while offering more at the same price. Their strategy must be working...check out the 5 year chart. I'd hate to ride a bike up that mountain slope :)


Anonymous said...

Hope you bought the iPhone with your American Express card, American Express is offering $200 credit or refund (cash) for the customers that paid the $599.

Curtis Forrester said...

I, of course, in my zeal to pay cash for such luxuries, used my debit card rather than AmEx. Darn...