However, the real discussion should be, "So, what? Why did I buy a iPhone in the first place?" Of course it is somewhat distressing that your investment of 60-plus days has depreciated $200 (or $100 now that Apple has offered a rebate--something you won't see from other wireless phone companies). But here are some things to consider. First, I bought my iPhone at retail at an Apple store. If I'm upset about the $200 price reduction, imagine how those people feel who paid north of $1,000 on eBay for one! Or what about that lady that was handing out $100 bills to secure a place at the front of the line? I think her iPhone cost around $1,600 when it was all said and done. This is the misery loves company approach.
Second, ask yourself whether you would have paid an additional $50 if Apple had originally priced the iPhone at $649. For many of us, the answer would have been yes. If it was, then you shouldn't be too upset because you just demonstrated that you didn't buy it for the price, but for some other reason. That reason could have been to be first. If so, there is a price for being first in any technology and you just experienced it. It is true being first adopter of a hybrid car, an HD television, or a laptop with a new generation processor.
The reason could have been to get you hands on new technology and a new user interface. If it was and you thought the value of that technology was $599, guess what, Apple just gave you a $100 gift certificate. That's because the technology has not changed (or if loading ringtones or accessing iTunes is considered technology, then the technology value has actually improved). You were getting value out of the technology before the announcement and now Apple has offered you a $100 credit. Once you past the emotion, that is a pretty sweet deal.
Third, I can only assume that Apple has a market that they have targeted with the iPhone. That target does not consist only of early adopters. My guess is that many are price buyers and were waiting for a certain price range to be met. This move was aimed at that part of the market. It may hurt that you paid more for the same technology, but this is a market reality and is not unique to Apple products.
Finally, as mentioned by numerous blogs, Apple is getting ready to introduce another model iPhone--probably a 16Gb version. They had to make room at the top end of their market price range to bring out that phone--most likely $599. My guess is that it will come out before Christmas. And just so you are not surprised, sometime next year, the 8Gb phone will either drop in price further or be taken off the market, and the 16Gb phone will be reduced $100-200 to make way for the next 3G and/or 32Gb model. It is simple market dynamics.
By the way, when the overpriced 3G model does come out, there will be a line at the Apple Store's door.
I've gotten my value out of the iPhone. But thank you, Steve for the noble gesture. I can't think of too many other companies that would have done what Apple did with the credit offer and definitely would not have responded as fast.
My next post will get back to my extended review of the iPhone continuing with Part IV.
Walter W. Casey, Ph.D.
Sent from my iPhone
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