There was a lot of great news that came out ofApple ’s “ The Beat go On ” eventin San Francisco on Wednesday , but none that ’s encounter with more disputation than Apple ’s decision to drop the price of the 8 GB iPhone by $ 200 to $ 399 . The 4 GB example also get a $ 200 drop , to $ 299 — at least , while supplies of that discontinue poser last .
The news that the iPhone would be a stupefying $ 200 less — that ’s a full one - third less than before , if you ’re hold path — has sent many iPhone buff into a fury . A destiny of people are feeling ripped off aright now , because they paid what I call the Early Adopter Tax .
I did n’t pay that , so I ’m gloating right about now . In fact , I ’m still not using an iPhone . I have n’t ordain one at the lower Leontyne Price , and at the risk of offending some of you , I retrieve that $ 400 for a cell phone , even one as orgasmic as the iPhone seemingly is , is still ludicrous .
You experience , there was copious grounds to call up that Apple and AT&T were going to abbreviate Leontyne Price on the iPhone sooner rather than later . The cell earpiece business is an incredibly volatile market , with new products entering the business almost constantly and service providers invariably looking for ways to draw novel client . ( If you ’re a recent buyer of an iPhone and you ’re fuming about the supernumerary $ 200 , you may be in luck : Apple is propose credit to iPhone emptor who have purchase their phones within the retiring 10 twenty-four hour period . To get a refund or credit , you demand to reach Apple within 14 day of shipment . you’re able to contact Apple Sales Support at 800 - 676 - 2775 . )
The Motorola Razr was the last phone to have anything even close to the iPhone ’s sex appeal , and I ’m certain that early adopters who compensate $ 500 for the perquisite of possess one in former 2004 felt badly ripped off when , if they ’d only been patient , they could later on get a Razr framework for free , or even ultimately putting money back in their air pocket , after rebates and incentives .
So it should n’t be any surprise at all that Apple has cut the price of the iPhone . What ’s renowned , especially on Wall Street , which pummeled the price of Apple stock conform to Steve Jobs ’ announcement ( down $ 7.40 to close at $ 136.76 , more than a 5 - per centum drop cloth ) — was the magnitude of the price diminution and the relatively short amount of time after firing .
Why drop the iPhone ’s by such a big amount ?
Pardon me if I ’m skeptical of Apple ’s beneficence here in what Steve Jobs called the caller ’s desire to “ make iPhone even more affordable for even more people this vacation time of year . ”
I expect the cost drop to promote short - full term demand for the iPhone to aid Apple handily beat its previously stated goal of sell 1 million iPhones by the close of September , but I also see the price pearl as a potential sign of weakness in the iPhone market place . I think once Apple got through the first concourse of former adoptive parent , it discovered that , as neat - type O cracking as the iPhone is , that $ 500 or $ 600 was just a petty too dear for most of us to pay . It ’s no secret that iPhones have been in plentiful supply at Apple and AT&T retail stores for the preceding few workweek .
Another factor has likely has played into investor fright resulting in Apple ’s breed drop cloth : Some analysts comment on the Leontyne Price cut have suggested that it ’s even potential to cool down any “ halo consequence ” Apple might see in future product sales from early iPhone adopters who are n’t already Mac or iPod user — after all , if they ’re feeling rip off , what ’s the likelihood they ’ll give Apple another chance ?
At the end of the day , I did n’t understand Apple ’s original pricing strategy for the iPhone—$600 was just stratospheric , and it was the single great barricade that prevented me from pre - ordering one . At $ 400 , the 8 GB iPhone is certainly more reasonable , particularly equate to Windows Mobile - base smartphones and other interchangeable devices you could order from AT&T with a new service architectural plan .
But let ’s front it — there are a lot of other gadget on the market place that provide fantabulous feature , albeit not with the iPhone ’s revolutionary interface nor with its tight integration with Mac OS X. But those other devices cost markedly less money , thanks to subsidy and rebates you’re able to get with new two - year plans , and you’re able to close up the sync spread dramatically using third - party products ( which I do , and which I ’m very pleased with ) .
It ’s just a ignominy that mass who were so anxious to get their hands on the iPhone at $ 600 are now feeling the botheration of spending all that money when people who waited can get such a better deal today . But as I ’ve said unnumbered times over the age to people who ask me for Mac buying advice , the best suggestion I can offer is to buy what you could afford when you demand to get it , and be prepared to palpate a pang of regret when the next , more improved model comes out , which will only only be too straightaway , as far as your pocketbook is touch . Buyer ’s remorse and consumer electronics go hand in mitt .
Me ? I ’m still sitting on the fence for the mo . The iPhone may be the good iPod ever , as Steve Jobs says , but for $ 349 that160 GB iPodis see like an awfully nice rise , and I still think that I can get by with my BlackBerry 8700 for a while longer .
