Apple Inc. triggered anger among its customers after the company decided to slash the price of the iPhone by almost one-third, causing its fans to criticize the price cut largely in part because they had to pay full price.
Apple Computer’s CEO Steve Jobs ended a Sept. 5 press conference announcing the price cut of the 8GB iPhone model to $399 from the original $599. The company also decided to completely discontinue the 4GB iPhone model, which was priced at $499, due to low demand from customers.
The dissatisfaction comes from irritated customers who purchased the iPhone when it was launched on June 29 at its original price of $599, only to see the price slashed by one-third promptly thereafter.
Many were disappointed because they had to pay full price, while others waited a mere two months to see the price reduced substantially. Amid customer complaints, Apple decided to offer a $100 rebate or store credit to those who bought the gadget at the original price.
This has not soothed the loyal Apple consumers, who question the motives of the price cut and the lack of respect the company showed for its customers.
Jobs apologized on the company Web site the day following the press conference after receiving angry e-mails from iPhone buyers who said they were upset over the price cut.
“We want to do the right thing for our valued iPhone customers. We apologize for disappointing some of you, and we are doing our best to live up to your high expectations of Apple,” Jobs said in the statement.
In the apology, Jobs said it was the right time to cut the price of the iPhone, attesting to the possibility that the price cut would come during the holiday season. “iPhone is a breakthrough product, and we have the chance to ‘go for it’ this holiday season,” he said.
Student Thomas Wilkins said he waited anxiously for the iPhone to drop into stores and be available to consumers.
“If I’m not on my laptop, I’d be on my iPod or my cell phone.” Wilkins said. “But with the idea of putting these together, I knew I would be among those people purchasing it when it was made available.”
John Rowe, a tech representative at the Technology Help Desk in the Steve and Nini Horn Center said, “What did happen was that people who purchased the iPhone at first were upset at how much they had paid for it. I don’t know what the hidden motives behind it were, but I can see why those people would be upset,” he said.
Wilkins argues that the $100 store credit isn’t enough to lessen the blow to original iPhone buyers. “I had to pay $200 more than the current price and they’re only giving me $100 in store credit, which means I can only buy Apple products. I mean they’re not giving me my money back,” he said.
The iPhone functions as a portable media player, like an iPod, and enables text messaging. It also can be used as a camera phone or visual voicemail.
In addition, it offers internet capabilities, such as web browsing and e-mailby connecting to local Wi-Fi lines. It uses a multi-touch screen and scroll technology with a virtual keyboard and buttons.
Rowe said that Apple and its Mac computers are gaining ground on other computer and software developers. He said that in terms of student usage on campus, though Windows PCs are the preferred alternative.
“I think it’s because Microsoft and Windows PC is the basic market it’s everywhere. Everyone is using it,” Rowe said.
Rowe added that on campus the computer labs provide access to both Macs and Windows PCs “This is a Windows PC majority environment, but there are both. We don’t segregate one system over the other,” he said.
Apple sold its one millionth iPhone the weekend after the price cut and Jobs’ apology.
