Apple offers $100 credit to iPhone early buyers | iLounge News

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Apple offers $100 credit to iPhone early buyers

Responding to widespread anger from early purchasers of the iPhone over $200 price cuts announced yesterday, Apple CEO Steve Jobs today published an open letter offering a $100 Apple Store credit to any customer who purchased an iPhone at its original $499 or $599 price points, and is not already receiving a rebate or other compensation from the company. Jobs simultaneously explained the company’s reasons for the price cut, apologized, and acknowledged its need to “do the right thing for our valued iPhone customers.”

“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,” explained Jobs. “This is life in the technology lane.”

“[E]ven though we are making the right decision to lower the price of iPhone,” Jobs continued, “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.”

According to Jobs, details of the $100 credit “are still being worked out and will be posted on Apple’s website next week.” The credit will be available through Apple retail or online locations.

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Comments

1

Hurrah!

I would have been happy with a $15 iTunes card, but a $100 credit does take out a lot of the sting of paying $200 more for being an early adopter for only two months.  I’m glad that Steve did go back and listen to his loyal Apple fan base and it trying to rectify the situation for us.

Posted by Jason Choi on September 6, 2007 at 4:43 PM (CDT)

2

if the priced dropped by $100 yesterday it wouldn’t have been that big of a deal. definitely happy about this (going toward my new macbook pro), but it’s a great business move by apple.
not only do they make themselves look good for stepping up and helping early adopters, they’re giving gift cards to their own company ensuring these people buy more from their stores! brilliant!

Posted by mdwsta4 on September 6, 2007 at 4:47 PM (CDT)

3

I was just coming here to post something about this when I saw the article - a friend had emailed me a CNNMoney alert on this.  I agree with the first poster - I had said yesterday that it would be nice if Apple gave the early adopters some kind of token, such as some free purchases from the Wifi store, but I was certainly not expecting $100.  I’m very happy about this decision, and Apple should be lauded for making it.

Posted by Rod Dunn on September 6, 2007 at 4:48 PM (CDT)

4

That is an excellent decision and I hope that people recognize the rarity of something like this. It’s a very promising gesture and it will only serve to bolster Apple’s consumer relations.

I’ll certainly be happy with my $100 credit, and will use it pretty quickly!

Posted by Flippy Hambone on September 6, 2007 at 5:14 PM (CDT)

5

hate to be a cynic, but could this really have been spontaneous? he can’t be so daft as to not have expected ppl to be miffed. instead, he chose to minimize ppl’s feelings and play the hero card by giving us an incentive to spend more money on his stuff. he’s a marketing GOD. but it’s cool. he certainly didn’t have to do anything. it’s just a tad lame to turn even screwing your customers into a PR coup. but i think that’s what it’s always been about in Cupertino, right? hence the RDF…

Posted by mrfett on September 6, 2007 at 5:22 PM (CDT)

6

Call it “RDF” or “daft” maneuvering if you wish, but the truth is that it’s just good business practice. You make a decision that offends your consumer, and you choose whether to respond or not. Jobs elected to do so in an expedient and reasonable manner.

I wouldn’t call it a “PR coup.” Looks more like damage control to me, given the stock price’s plummet and the general uproar about the $200 drop. More than anything else, it was a means of ensuring that angry Apple customers at least remain Apple customers in the future.

Posted by Flippy Hambone on September 6, 2007 at 5:26 PM (CDT)

7

Flippy’s right.  The media coverage since the event has been more about the price drop and angry iPhone owners then the new iPods. Check the papers and news outlets. The updated iPod line was getting lost in the coverage and Cupertino could never accept or want that to occur.
By announcing the $100 deal they put closure to that “distraction” and get the media spotlight back to the iPods. Right where they wanted it all along. Smart business moves.

Posted by titoffas on September 6, 2007 at 7:33 PM (CDT)

8

This was unexpected. I had posted earlier how yes I felt ripped off but I understood that it was the price of being the first on the block to have one of these marvels. But a 200 dollar loss in a 3 month span was a hard feeling to get over. This rebate is a big help and like everything else, in the end, this financial help will be going back to apple pocket. But I dont feel as bad as when I mention that apple stuck it up my whazzo…
Once again I feel satisfied. And this time I know I do.

Posted by djJASMAN in California on September 6, 2007 at 7:35 PM (CDT)

9

I give Apple credit for this move. I respect Apple even more now- I DON’T CARE WHY they did this- I just care that they did it at all. That means that Apple does care about public and consumer perception. Whoever is not happy with this decision would probably not be pleased with ANYTHING-, some people are NEVER pleased. Let’s not confuse those people with us who really appreciate this gesture. Thanks Steve/Apple for proving once again that your the best.

Posted by Hatman on September 6, 2007 at 9:20 PM (CDT)

10

Sweet.

Posted by unreal on September 6, 2007 at 10:47 PM (CDT)

11

sure…happy huh?...excuse me,but it is only been three months..a little less and a 200 dls drop???...
Nobody does that?...you wait a year and is reasonable…I want my 200 back…They really need to respect more their customers or will lose them…well, unless you all are a bunck of zombies who don’t see past their nose…blinded by “new technology”...They just need to learn to set up prices well before is too late…WILL NEVER BUY another apple product in its first release or before the drop price….:)

Posted by 123sure! on September 7, 2007 at 4:52 AM (CDT)

12

I agree with mrfett…this was a calculated move on the part of Jobs…always wanting to play the hero. 

For those who don’t believe it…spend some time researching how the release of Apple’s Aperture and subsequent price drop was handled.  I’ll give you a hint…he did the same thing with that release and immediate price drop as he did with the iPhone price drop.

This is becoming a textbook move for Jobs…I and many others see right through it.

And how many felt his open letter was a bit condescending?  He says that’s the technology road is bumpy…how glib. 

After his proclamations that the iPhone was worth every penny of $599…he drops it $200 in two months…don’t you see he screwed us twice.  First by overcharging us…then by making sure that every penny he gives back goes right back into his pocket via an Apple Store credit..

Want me to shut up…give me a credit on my phone bill…not an Apple Store credit.  I don’t need to buy another $399 iPhone right now…nor a new mac…nor a new iPod. 

Better yet…send me a check!

Posted by YouKnowItsTrue on September 7, 2007 at 5:24 AM (CDT)

13

I hope the rebate doesn’t involve showing a receipt for a proof of my purchase. I left all of my iPhones’ packaging to my sister. I doubt she kept the receipt. She just wanted the bag that came with it.

Posted by Matheiu on September 7, 2007 at 7:03 AM (CDT)

14

I wouldn’t mind getting song credits though. I’m sure that registering my phone online would give enough proof of being an early buyer.

Posted by Matheiu on September 7, 2007 at 7:06 AM (CDT)

15

Again, it’s a BUSINESS decision. Maybe Jobs is trying to play the hero role, but so what? He’s the leader of a corporate behemoth and, like it or not, the court of public opinion turns on his word with regard to these matters.

And, yes, it was by design that the $100 offered was as a credit for the Apple Store. How many times have you seen thriving businesses resort to this kind of practice? Look at sneaky things like mail-in rebates, price-match programs, or rewards points. The idea behind these consumer incentive programs is to secure your dollar so another doesn’t. It’s capitalism, pure and simple.

If you “see right through” what Jobs is doing and it irks you enough, you’ll never extend another dollar toward him or his company. He’s willing to take that chance. There are literally tens of thousands of folks who, while miffed at the price drop, were still pretty pleased that the feedback generated some kind of positive response. He’s wagering that for every truly pissed-off-beyond-recovery iPhone buyer that exists, there are probably 10, 15, 25, or 50 who won’t mind using that $100 credit.

And, sorry to disappoint you, but he’s going to win that bet.

Posted by Flippy Hambone on September 7, 2007 at 10:03 AM (CDT)

16

Even after getting a $100 credit, some of you still complain about it. You’ll never be satisfied. You really shouldn’t get ANYTHING because those are the breaks in life—you generally get 14 days because of the rate technology changes. You should be thrilled that Jobs is helping ease the sting, whatever the reasons.

Posted by bookcase on September 7, 2007 at 10:12 AM (CDT)

17

So I guess:

-33% in two months=BAD (APPLE)
-60% in six months= GOOD (MOTOROLA)
-80% in nine months = GOOD (MOTOROLA)

Posted by Nemo on September 7, 2007 at 1:58 PM (CDT)

18

I agree , “bookcase”. As I stated above.

Posted by Hatman on September 7, 2007 at 3:47 PM (CDT)

19

Simply put guys…anyone who saw the price of this thing drop by $200 wanted to be compensated for that.  The way Apple’s return policy on the iPhone is worded I don’t know if the people who bought within 14 days can even get their $200 back.  Is it good that Apple is giving something back to those who paid $599…yes.

But, let’s not sit here and act like it’s no big deal…it was a slap in the face and Jobs knows it was…that’s why he is giving the credit.

Jobs was testing the limit of the Apple loyalist and he saw that they were pissed…really pissed.  The few of you who come hear to post and act like elitist and pretend that $200 means nothing to you are lying.  If the $200 means nothing to you, then the $100 credit should mean even less…but I bet you’ll all run down to the Apple Store and collect your credit.

I knew the price was gonna come down.  Didn’t expect it to come down so much so fast.  I also didn’t expect such a glib letter from Jobs…but actually I should’ve.

Posted by YouKnowItsTrue on September 7, 2007 at 5:45 PM (CDT)

20

you early iphone users deserve nothing.

i guess you guys whined enough and to shut u up he gave you $100 credit.

oh wait - $100 to spend so you can send another $200+ more on an ipod!! genius!!!!!!!!

Posted by gabe on September 9, 2007 at 12:12 AM (CDT)

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