Jobs on NBC Uni dispute, iPhone price drop | iLounge News

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Jobs on NBC Uni dispute, iPhone price drop

In two separate interviews yesterday, Apple CEO Steve Jobs made comments regarding both the company’s recent dispute with NBC Universal and yesterday’s announcement of a $200 price drop on the iPhone. Speaking about NBC, Jobs said, “We hope they’ll reconsider their decisions over time and maybe find out that iTunes and iPods are a great way to digitally distribute their content to tens or maybe hundreds of millions of customers around the world.”

In an interview with USA Today‘s Jefferson Graham and Edward C. Baig, Jobs was asked, “What do you say to customers who just bought a new iPhone for $599? Sorry?” He responded, “That’s technology. If they bought it this morning, they should go back to where they bought it and talk to them. If they bought it a month ago, well, that’s what happens in technology.” He also responded to a question regarding iPhone manufacturing costs relative to the price drop, saying, “We’re in high-volume manufacturing, and we’re pretty good on the costs side. We’re also willing to be more aggressive… The product’s been extremely well accepted; we want to put the pedal to the metal. A holiday season is approaching; we’d have to wait another year for another one.”

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Comments

1

i bet they were able to cut a better deal on the flash memory and figured the increased volume would compensate for the decrease per unit revenue. i think we all knew the 8GB iPhone was massively overpriced. still, it stings a little. but hey, all us early owners got to go to parties and work and show them off. hope you all enjoyed that, cause it cost you 2 bills raspberry

Posted by mrfett in Washington, D.C. on September 6, 2007 at 6:42 AM (PDT)

2

also, it need to be said: all the comments about “waaa i was out there promoting and converting ppl to the the iPhone” are completely disingenuous. you were out there showing off your new toy, and everyone you were showing off to didn’t need to be convinced it was a cool toy, they just didn’t think it was worth $600. they were right, we were fools, and now we have a little egg on our face. end of story.

Posted by mrfett in Washington, D.C. on September 6, 2007 at 6:48 AM (PDT)

3

What I find even more disheartening is that some people are managing to obtain a reimbursement because of the price drop. So far I’ve heard $150 back! Even if they purchased their iphones 2 months ago! I heard it may be just those that purchased their units online through Apple. I purchased my iPhone through ATT, Apple would not do the same for me—I called them.

Posted by jepoyako on September 6, 2007 at 6:55 AM (PDT)

4

Exactly, now we have an egg on our face. As the New York Times points out: “Apple executives insisted that the price cut had been planned long ago”. It wasn’t just ‘technology’, it was planned to throw that egg, and that’s what p***** me off. I was their lab animal, fielding the phone for them, and paying a crazy amount of money for that job - and it wasn’t just fun, what bragging-rights there were, were easily justified with having to deal with all those opinions everyone had about the iPhone and those who owned one.

Aah, whatever, they lost me.

Posted by fduane on September 6, 2007 at 6:59 AM (PDT)

5

stop whinning!!!!!!!

People, apple didn’t force you to buy and get in line to buy the iPhone. Stop the blaming game.

Posted by tj on September 6, 2007 at 7:14 AM (PDT)

6

Early adopters on the Bleeding Edge have always paid through the nose. I remember the first CD players in 1982 were priced at or above $1000. A year later they wre down to $300. The very first model I purchased (Magnavox FD-1000) was originally priced at $699 only a few months before I bought it for $300.

For decades it’s always been the Early Adopters paying the R&D costs and the later buyers benefitting from the mass production savings. Nothing’s changed.

Posted by Scotto on September 6, 2007 at 7:18 AM (PDT)

7

I purchased by 8gb iPhone 20 days ago…..the Apple Store in Indy made an exception and did the $200 price adjustment for me anyway….

Posted by Jason on September 6, 2007 at 7:38 AM (PDT)

8

I think that Apple had initially planned to sell the iPhone at $400. But if they had, the demand would have been much higher at the release and Apple would not have the supply to meet it. It would have been sold out everywhere with scalpers making tons of money on ebay.
By jacking the price a couple hundred bucks, they were able to keep demand at a level they could match. Some scalpers made money, but many actually lost money after shipping and ebay fees.
Also, expanding the iPod line to include the iPod touch gives Apple another way to recoup R&D costs.

Posted by Knight Rider on September 6, 2007 at 7:41 AM (PDT)

9

Something is going on.  I cannot find the iPhone on AT&T website.  I think AT&T is pissed as well.

Posted by marcfogel on September 6, 2007 at 7:46 AM (PDT)

10

marcfogel,

iPhone has never been available through the AT&T website.  It’s only been available through the walk-up stores.  It shows the price-cut on the website.

Posted by alexarch in Dallas, TX on September 6, 2007 at 8:15 AM (PDT)

11

The price cut clears the way for the “real” iPhone on Sept. 25: 16 GB, 3G.

Think you got egg on your face now? Wait until a truly better, higher capacity, cheaper phone comes out less than 3 months after you got your toy.

Posted by Bob James on September 6, 2007 at 9:00 AM (PDT)

12

Really doesn’t bother me.  I needed a new phone, the iPhone fit the bill, I’ve been pleasantly happy with it.  8GB is plenty for my personal needs, as I have a specific list of music I listen to anyway, and I rarely if ever go hunting for more.  I don’t need something that plays movies or TV shows on it, as I have things called televisions which are bigger and easier to watch on anyway.  3G is utterly useless for me, as the closest 3G cell network towers to me are 180+ miles away.

Posted by Xlorep DarkHelm on September 6, 2007 at 9:24 AM (PDT)

13

“Thats technology”

What an a$$.

Posted by unreal on September 6, 2007 at 10:53 AM (PDT)

14

I’ve been an early adopter for a while now. I expect that prices will drop and later customers will get to buy in at a lower price than I did. Unfortunately, this particular price drop is leaving a bad taste in the mouths of some of Apple’s most loyal users. This kind of price drop in an Apple product is absolutely unprecedented, and it’s hard to believe that Apple didn’t know 3 months ago that they could sell these things for $399 and still have a decent margin. Production and materials costs do not drop that drastically. Now Apple has many of their most loyal customers, the ones who are usually willing to take the money hit for having the latest Apple gear, disgruntled and second guessing future early adoption of Apple products.

If this price cut had been $100, I think most of us would have been disappointed, then shrugged it off. $200, however, just says, “Thanks for the money, suckers! Now, what else can we overcharge you for?” When you adopt early, you get burned sometimes, but I have never been burned like this.

Sorry Steve, but you know the saying, “Fool me once, shame on you…”

Posted by rpboyer on September 6, 2007 at 11:38 AM (PDT)

15

That’s the Apple way and Jobs’ followers will always make excuses for him. 

I’ve heard of people with the “price protection” credit cards getting reimbursed fairly easily.

Posted by superape on September 6, 2007 at 11:40 AM (PDT)

16

grow up people! there is a thing called supply and demand. the demand is either higher now or where they had hoped it would be.

the NY Slimes article claims that the price cut was planned, i bet it was but only if they reached certain sales goals.

it is also safe to assume that with the new iPod touch and nano that they were able to negotiate a better price for flash memory.

either way any company like apple would do a price cut just to burn existing customers, who do you think they are? microsoft?

Posted by hydra-calm on September 6, 2007 at 11:44 AM (PDT)

17

AT&T was nice enough to refund $200 on the iPhone that I bought for my wife on Monday of this week, no-go on my 5-week iPhone. It was a nice gesture and I’ll put the money to use in buying a Mac when the new OS comes out in October(?). It’ll be my first after years of windows machines and smartphones, but the ease of operation of this iphone has sold me on Apple. Love the damn thing even at $600.
The whole “that’s technology” remark is poor PR, but the % of people that jump ship will be replaced 100x by new users thanks to the price drop.

Posted by Robert on September 6, 2007 at 11:53 AM (PDT)

18

I won’t deny that I am very upset about the price drop coming so soon after buying it… But what has me upset is the inconsitency at Apple to how they decide to deal with giving rebates. I went in and was flat out told, No, not unless it’s 14 days or less, then I read all these stories of people who bought it on day 1 getting their money back… It’s gotta be all or nothing for those of us who bought it before Aug. 21st.

What really got me was the Apple employee who said, “I feel your pain, I bought one as well.” Well, considering he most likely got it for free, I don’t appreciate his false sympathy.

Posted by Hayes on September 6, 2007 at 12:01 PM (PDT)

19

Steve just posted a letter: early iPhone adopters get a $100 credit.

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

Posted by iloungelizard on September 6, 2007 at 12:19 PM (PDT)

20

For Apple to credit early adopters $100 is an exceptional move in any industry. Hats off to Steve Jobs and Apple…

Posted by RNB in Bakersfield, CA on September 6, 2007 at 1:26 PM (PDT)

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