There was an article I read on a blog site the other day (I think it was .. oh, here it is from Jacqui Cheng at arstechnica) where Woz was raving about how low the price of the iPhone was back in January when it was announced. He said it was so low that he was planning on buying a bunch for all of his friends.
Well, the big huge gargantuan Apple news of the day is that Apple announced at their press conference this morning that they have reduced the price of the 8GB iPhone by $200. That makes the price for an 8GB iPhone now $399 down from $599 (for those who suck at math(s)). That’s a never-before-seen-in-the-technology-industry reduction of about 33% in just 68 days. At this rate, in two months from now an iPhone will cost around $267.33. And in about two months from that, a mere $178.23!
So, with this price drop, Woz must really be pleased! He must be going to his nearest Apple Store and picking up another 5000 of these cheap-ass babies.
I jest, I kid, of course. Woz probably only bought 4500. What, you think he’s just gonna throw away his money like that?
Anyway, the real issue surrounding this story is about the quickly huddling masses of “early adopters” who are circling the wagons as I write this. Although opinions run the gamut, it’s clear that emotions are definitely high over this unprecedented move.
Apple has clearly put itself in a position to have a successful holiday season and at the same time has managed to alienate a few hundred thousand of its most loyal and faithful customers. As a result, many see this as a personal slap in the face and feel that they are entitled to some sort of reciprocation from Apple for supporting the product early on. And I have to say, I agree.
But, let me be clear. Economically speaking, in terms of supply and demand and caveat emptor and all that, those who buy something early and pay a premium are due nothing if the value of their purchase declines no matter how rapid or drastic the decline.
However, in terms of customer relations, rule 1 is and has always been “the customer is always right.” In other words, keep your customers happy, for if you piss them off then you will eventually have no more customers.
I always think it’s in any company’s best interests (Apple’s included) to maintain smooth relations with its core audience, who wouldn’t? But this move by Apple today reeks of a huge slap in the face to that core audience.
The message Apple is sending today is one of if you are thinking of buying a gift from the Apple Store for someone for the holidays, you’d be better off buying a gift card. That way, the buyer can wait until after the gold rush and make their purchase when prices stabilize at a lower level. And they can potentially get more for their money.
Unfortunately, everyone loses with this message. Apple loses and its customers lose. Except Woz, that is.
Spot on. Take care of the loyal customers and they will return. Sacrifice them at the altar of short term gains and new customers will hear about it
You are ridiculous. You seem really angry at Apple, but I think you are really angry at yourself. Apple is a business. They are there to make money, by law it’s their duty to increase shareholder value. If they thought dropping the price is the right move business-wise, then so be it. It’s too bad that the fanboys are getting in snit, but too bad. If you couldn’t afford it, then you shouldn’t have bought it. The price might be cheaper because they ordered more components for the iPod Touch. Regardless, chill out, whiny-person.