In an open letter published on the Apple website, Steve Jobs has addressed the concerns of upset iPhone early-adopters and offered what he must be hoping will be a catch-all olive branch in the shape of a $100 gift certificate for use in-store or online.
"[E]ven though we are making the right decision to lower the price of iPhone, and even though the technology road is bumpy, we need to do a better job taking care of our early iPhone customers as we aggressively go after new ones with a lower price. Our early customers trusted us, and we must live up to that trust with our actions in moments like these" Steve Jobs
You can read Steve's full statement after the cut...
Details of the rebate will apparently be posted on the Apple site sometime next week
To all iPhone customers:
I have received hundreds of emails from iPhone customers who are upset about Apple dropping the price of iPhone by $200 two months after it went on sale. After reading every one of these emails, I have some observations and conclusions.First, I am sure that we are making the correct decision to lower the price of the 8GB iPhone from $599 to $399, and that now is the right time to do it. iPhone is a breakthrough product, and we have the chance to 'go for it' this holiday season. iPhone is so far ahead of the competition, and now it will be affordable by even more customers. It benefits both Apple and every iPhone user to get as many new customers as possible in the iPhone 'tent'. We strongly believe the $399 price will help us do just that this holiday season.
Second, being in technology for 30+ years I can attest to the fact that the technology road is bumpy. There is always change and improvement, and there is always someone who bought a product before a particular cutoff date and misses the new price or the new operating system or the new whatever. This is life in the technology lane. If you always wait for the next price cut or to buy the new improved model, you'll never buy any technology product because there is always something better and less expensive on the horizon. The good news is that if you buy products from companies that support them well, like Apple tries to do, you will receive years of useful and satisfying service from them even as newer models are introduced.
Third, even though we are making the right decision to lower the price of iPhone, and even though the technology road is bumpy, we need to do a better job taking care of our early iPhone customers as we aggressively go after new ones with a lower price. Our early customers trusted us, and we must live up to that trust with our actions in moments like these.
Therefore, we have decided to offer every iPhone customer who purchased an iPhone from either Apple or AT&T, and who is not receiving a rebate or any other consideration, a $100 store credit towards the purchase of any product at an Apple Retail Store or the Apple Online Store. Details are still being worked out and will be posted on Apple's website next week. Stay tuned.
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.
Steve Jobs
Apple CEO
Even though I didn’t feel that a rebate was necessary, I’m impressed that Apple will “do the right thing” for early adopters. I do wonder what kind of precedent this will set, though…
As for me, I’ll use my $100 credit towards a second iPhone. My wife has been impressed by mine! :)
$100 towards iTunes anyone?
Does that cover the 4gb version or only the 8gb?
go to the apple store and buy an itunes gift card then
At the moment we don’t know the exact details of which iPhones this will apply to, or what limits there are on what you can spend the $100 on. I’ve a sneaking suspicion that iTunes purchases will be exempt.
yay new bluetooth for me
I think this is a class move, and goes above and beyond. I wasn’t that upset by the fast price cut — I understand the need to keep sales high, and the higher the better for ALL of us — but I’m not foolish enough to turn down a $100 anything.
Impressive indeed. I think I can find something to spend $100 on at the Apple store, like perhaps a new iMac!
Class act Apple, thank you!
Man, Steve must be a fast reader to get through all those emails in that amount of time! Apple did kind of get behind the ball, with not expecting the customer outrage from the price cut. Now the news is all about the iphone rebate rather than the new ipod touch it was releasing yesterday.
http://www.growyourfunds.com/2007/09/apple_aapl_put_on_the_defensiv_1.html
I think apple is in “damage control” this is an AFTER THOUGHT.. I own the iphone, I paid 600, my local store gave me the price match, they have a loyal customer..
HOWEVER.. this my second apple product EVER.. I will never again buy a product from them in the first 100 days..
really are we all so simple that we overreacted to the drop, and now we overrreact just as much the other way when apple says “eh, cmon in, give us another 30 bucks, and you take out 50 bucks worth of stuff”
if the loyal fan / customer base was so important, apple would have instituted an “thank you” program at the unveil for the early adopters. Not as an after thought..
they showed you what they think of the first, most loyal, marketing customers.. you are worth an extra 200 bucks to them
me too, fool me once..
@think
there are no companies out there that are your friend or has your best interest in mind. if am I wrong, name one. every business — once they become a publicly traded business — ceases to answer to the passionate people that started the business or its customers and starts answering to the major share holders.
that said, the fact that Apple went out of its way to placate the early adopters and at a hefty cost too ($60MM or to a share holder $0.02/share) says that they are good at taking a problem and turning it into a solution:
- early adopters don’t feel as alienated
- Apple just created themselves 600k automatic repeat customers
- people (mistakingly) see the rebate as apple taking care of its customers
- press coverage (advertising)
not a bad way to spend $60MM, IMO.
is it damage control? sure. how else could they have handled the situation though? look at Sony and how they handled the PS3. did the early adopters of the console getting anything back? nope.
early adopters pay a premium for bragging rights. did you not get any psychological benefits from being an early adopter?
I am a very big fan of steve job and apple product .my age is 18 .My pet name is APPLE.And my father made a management software (name of the office is “UPDATE SYSTEM” which is not so popular and
1 My aim is to market the software to big company if posible APPLE and to learn animation
2 Next my UPDATE SYSTEM office should have only APPLE product
3 Next if posible i will have contact with APPLE to open APPLE STORE in india (TAMIL NADU state) because in our area only 5% of them use apple product
4 Next i want to build a UPDATE UNIVERSITY with APPLE PRODUCT
5 NEXT I WANT TO CONVERT POOR PEOPLE IN TO MIDDLE CLASS PEOPLE And kindely send my the infomation in my mail id
THANKING YOU
your’s truthfully
A.SHAMIR MOHAMED
INDIA
Everyone is now clamoring to use their $100 iPhone 1.0 rebate credit for the new iPhone 3g, making the iPhone 3G’s net price just $99.
I have already called my local Apple Store and they said YES, I can use my credit toward an iPhone 3G. I spoke to Vicky at the Simi Valley, CA 93065, Apple Store, and she even got off the phone to double check with her senior supervisor who confirmed that the credit can be used for the iPhone 3G.
Don’t let anyone tell you that you cannot use your one hundred dollar credit toward an iPhone 3G, you can.
My screen resolution makes this blog look a little strange. Do you know what the problem is?