$200 OUTRAGE!!

Outrages!!! If i would have waited a I could have gotten a much better deal. I would have expected a price after atleast 6 months to year but 2 months? It is just too short of a period of time. I agree they should compensate the 1st generation buyers with something to ease the rage of me and my fellow iPhone peers. Like, 25 free ringtone customization, or better yet a Bluetooth.

SCOTT'S REPLY: Thanks, Robert. I'll send it along to Apple.

To be honest, the $200 price drop was like a sucker punch in the gut! I don't understand it but I have come to accept it and I still love my iPhone. What is hard to take is all the "told you so" comments being made by my fence sitting friends. Do I want Apple to do something for me for having had to spent the extra $200? Well, yes, that would be nice. I will still buy Apple products in the future but will forever be just a little more leary about "when" I buy their products. I can't help but think of the people who really sacrificed to get a new iPhone. They are the ones who are probably the most upset!

SCOTT'S REPLY: Thanks, Paul. I updated the entry if you didn't see with something Apple did with a similar situation between the 1.0 and 1.1 updates of Aperture. They need to do the same thing here. Even a $100 iTunes gift card. Something to show appreciation.

I bought an iPhone just 3 weeks ago -- grrr!

So this is what I get for being a loyal Apple customer since 1983?

Apple should definitely do something to reward the early iPhone adopters.

Thanks for rewarding loyalty Apple. I ordered the iPhone on the day after it was introduced. I received it two weeks later. So six weeks later I am shafted for $200.

SCOTT'S REPLY: Thanks for writing, Shelly.

Will all you Apple people finally see what this Company does? But as most of this readership are Cub fans ... I can see why the would continue to beg for more ... when all they get is another Slap in the face. Your revolution will be as milk toast as Stevie J knows it will be ..... LOL

SCOTT'S REPLY: I don't think this is about Apple people, Kent. It's about being treated loyally as customers, no matter what company you are talking about.

Please, phones drop in price all the time. The razor was $500 when it came out, and now you can get them for free. PS3 and xBox's prices have been cut... Granted two months is a short time period, but the iPhone is amazing, if you thought it was worth $600 when you bought it, then thats what it was worth. At $399 its a bargain. I am glad Apple can drop the price so more people can get one. I waited in line to buy two, and I have no regrets. No need for a witch hunt, enjoy progress and Apple's sucess, we are all benefitting from it.

SCOTT'S REPLY: A well-thought out perspective, xnu.

I agree! The price cut announced today makes me realize that back in early July I *didn't* really think the iPhone was worth $599 like I *thought* I did.

And hey, I spent $1710 on an original Mac + Imagewriter + MacWrite/MacPaint back in February of 1984. Sure I got a steep discount because Carnegie Mellon University was an Apple Consortium school, but still! An 8MHz computer for $1700? O the Humanity!

I just hope the high-tech industry stops this infernal price-lowering, otherwise I'll never ever buy anything electronic again!

The price drop is understandable (as pricing is the easiest and quickest route to increased market share), but as you've shown with Aperture, Apple has rewarded their loyal customers in the past and should do so again. I'm just as upset about the news, but maybe that's the price we pay as early adopters in the technology market.

Even if we don't get all $200 in a rebate or freebies of some sort, showing appreciation will not only get Apple some more media exposure, but overall will increase Goodwill, which translates to long-term profitability.

SCOTT'S REPLY: I agree, Jeremy. We'll see if they turn this into a good business opportunity or a PR nightmare.

You saw the price tag... you laid down the money.

What part of the transaction didn't you understand?

I bought a new Toyota Matrix... had I waited until this December to purchase the same year model car I could have cut a full $4k off the price of the identical car.

Big whoop.

Grow up.

SCOTT'S REPLY: Now DWalla, you understand we are talking about 2 months since the purchase, right? I think that's the key here. A year? Sure. 6 months even. But 2 months?

WHatever people - so Apple's not allowed to lower prices ever? If you bought it within 14 days you can get the difference refunded but if not - no one held a gun to your head to buy an iPhone in the first 2 months. Prices fall - people who bought HDTVs early on are pissed now too.

Granted this price drop was sooner than I may have expected but we all knew they'd drop the prices eventually.

SCOTT'S REPLY: Absolutely Marcos. But it's just so soon. And since so many people waited in line, it seems harsh.

I just bought mine a little over two weeks ago. I have been a loyal Apple customer for nearly 20 years. If they do not reach out to their customers on this one, I will certainly allow for a healthy waiting period after introduction prior to my next purchase.

SCOTT'S REPLY: Keep checking back here, Andre. I'll let you know what if anything comes of all of this outrage.

Get over yourselves, people. You might not like it, but this is totally fairplay. I've seen computer prices drop way more in a similar timespan from release, and Apple is very, very far from the only transgressor (in fact, they plummet their prices less than the industry as a whole, which has a tendency to panic). Your congressman ain't gonna hold your hand on this one. And also, if you think that this is as angry as Apple users have ever been, then you haven't been paying attention. This is nowhere even close to the angriest Apple users have ever been. It does not even come close to comparing with the day they discontinued the Apple II line, for example, and guess what changed as the result of that brou-ha-ha? Nothing, that's what. So I suggest you shut up and take your bleeding edge cuts like men, or maybe start one of those pointless frivolous class-action suits that are so popular these days -- might as well whine to somebody who has the power to smack you down for it.

SCOTT'S REPLY: Apple II. Oh yeah.

Thanks Apple! I couldn't afford to buy it right off the launch...but now I can. How can you complain about Apple lowering it's margins to get more iPhones into the hands of its customers? That is thinking about consumer. The majority of people do not own iPhones. Do we here anger from them? No...just from the minority that must have the latest gadget to distinguish them from the rest of us. Well...that costs $200! It was your call. Prices always drop, or something newer and better comes out that costs the same...select any product that Apple has made or will make. It's a long established pattern.

SCOTT'S REPLY: You aren't wrong at all Tim, and I'm glad you can get one now. But it's just so soon. None of this would be happening if it were 6 months out.

Grow up... Apple is taking a bold move. They are adopting aggressive pricing to capture market share. For years people have bitched about Apples products being to expensive. Now they will bitch about them being too cheap!!

Get a life folks. Quit moaning and remember the dictum of business Caveat Emptor.

SCOTT'S REPLY: Mike Brady said it ... Caveat Emptor ... It means let the buyer beware.

According to Apple's website, you can request a refund if you bought the iPhone within 14 days of a price reduction. Which is sort of fair. As Shelley wrote, she waited two weeks from ordering, so I am not sure how the policy would apply there (mind you, that was from day one of the offering).

Apple is going to offer something... but personally, I've always seen Apple as business that should put a premium on products to people who want to line up for them. They never do. But being an alphageek has to come with a price. Though alphageeks always do yell the loudest in cyberspace.

SCOTT'S REPLY: Alphageeks. I like that term.

How To Get $200 Back If You Just Got An iPhone

Did you just buy an 8GB iPhone and paid full price? And are you feeling upset over the $200 dollar price drop that Apple (AAPL) just announced? Well there is a way you can help yourself and get $200 back. Apple’s store return policy states:

"Should Apple reduce its price on any Apple-branded product within fourteen (14) calendar days of the date of purchase, you may request a refund of the difference between the price paid and the current selling price. An original purchase receipt is required, and you must request your refund within fourteen (14) calendar days of the price reduction."

Just to clarify, if you bought the phone from Apple store, then you can get the refund from Apple. Otherwise visit the AT&T Store to request a refund.

On June 29th when I was standing in line to buy an iPhone and you told me that in 2 months the iPhone would drop by $200...I would have still bought an iPhone. On June 29th if there had been a shortage of iPhones and I would have had to pay $200 extra to get an iPhone...I would have. $200 for 2 months with the iPhone, yeah, it's been worth it.

But I'll still take an eCoupon if they offer it ;-)

SCOTT'S REPLY: eCoupon signed by Steve Jobs. I like that.

This is the world of consumer electronics... I'm seriously embarrassed for all of you that are completely freaking out.

How about this?... I bought the DVD series Band of Brothers a while back for $150.... and I kid you not.... less than a month later it was selling for $60 at a discount DVD shop near my home.

I wasn't screaming bloody murder like you guys.

Pathetic. Really.

SCOTT'S REPLY: Band of Brothers for $150? Really?

One last thing.... market pressure MADE them drop the price to $399.... wasn't that what everyone was screaming when it first came out? That the iPhone was too bloody expensive? They let the phone ride the market and they obviously saw that the price tag was too high. Early adopters of ANY technology can expect to eat it in the wallet.... sometimes faster than others.

SCOTT'S REPLY: True. The pressure was on ... especially with the holiday shopping season approaching fast. Christmas trees up at Macy's in Chicago!

OK... I swear this is my last post.

So let me follow your train of thought.... because you guys were early adopters and purchased the iPhone at $600 means that the phone can only drop in price by small increments? Say.... $50 every 12 months for the next 4 years in order to appease you guys? Maybe you should form some iPhone committee that rubber-stamps whether or not Apple should cut or raise prices... and when.

Seriously... I haven't seen this much blubbering since my high school prom date broke the heel on her shoe.

SCOTT'S REPLY: But when did she break the heel in comparison to when she bought the shoes? If she bought the shoes 20 minutes before the prom, then there you go. If it was 6 months, then such is life.

I don't think a comparison to Apeture is fair since, IIRC, Apeture was buggy as all heck, worse than any product you can think of in recent history.

A fairer comparison would be to the Macintosh IIvx/Centris 650 episode where, three months after introducing the IIvx, Apple introduced a machine twice as fast for $300 less, and the purchasers of the IIvx got nothing -- except use of a decent machine for three months, something that they day before the Centris was introduced, the users thought was well worth the price they paid.

You have to realize this is technology products in a capitalist society. Prices are going to rise and fall without warning or much of any protection. At least Apple does the 14-day price protection. Think BP would give me back $0.20/gallon on the gas I bought yesterday, or SuperValu $0.75 on the gallon of milk?

SCOTT'S REPLY: Kyle has a point, although I think BP should refund the gas money.

Apple has been doing this for DECADES! The first time it happened to me was back in 1989 and I had the same feelings of anger, betrayal and being cheated and all that. Now I just accept that price reductions can happen anytime and I only buy computers or electronic devices when they're at a price point I'm comfortable with, whether that means the day they're introduced or two years later. As a previous post mentioned, if you paid $599 at the time and worse yet waited on line overnight, then $599 was what it was worth to YOU at the time.

I bought an iPhone when they were released and I still can't even use it yet (live is Australia) Am I upset that Apple dropped the price? No, we all knew the price would drop eventually...

Whenever the price drops, you'll always have people who paid the higher price 2 - 3 days beforehand... This is the cost of early adoption!

Although... If they had released an iPhone v2 today... (a 2month product cycle would be a bit harsh) But I'd still understand!

What are these people moaning about. They've got plenty of money to buy the latest, fanciest gadgets. So they spent an extra $200 to show off to everyone in eye distance. $200 should easily be worth the extra attention they were getting. They had to be the first on the block to own an iPhone. At some point in time, the price of the iPhone had to drop. That situation can happen at any time with any product. I paid thousands of dollars on Apple computers 10-15 years ago and now they're worth nothing. Tough.

They lasted a long time and I guess I got my use out of them. I'd recently bought a Sony HD TV and within six months it lost about $500 in value.

That's the way the industry works. No manufacturer is going to give you your money back every time there is a price drop. These whiners should move on with their lives. It's just a measly $200. They probably spent that much at the nudie bar last night.

Apple has been doing this for DECADES! The first time it happened to me was back in 1989 and I had the same feelings of anger, betrayal and being cheated and all that. Now I just accept that price reductions can happen anytime and I only buy computers or electronic devices when they're at a price point I'm comfortable with, whether that means the day they're introduced or two years later. As a previous post mentioned, if you paid $599 at the time and worse yet waited on line overnight, then $599 was what it was worth to YOU at the time.

What outrage are you referring too? Post the links. I've been checking the non mac and mac sites and have read nothing of what you're talking about.

Post links to popular websites and not obscure little ones. You apparently are the only person thats seeing or feeling this outrage.

You paid 200 to be one of the first. No one forced you to become an early adopter. You wanted to walk around and strut...rub it in anyones face when given the chance...right? Yea so STFU.

SCOTT'S REPLY: Rene, you'll find the link to Apple's discussion board in my original post. That's a big site and well representative of what the people are saying.

hey, at least you guys can buy the iPhone. It ain't due down here in little ol New Zealand until the end of next year.

in all i can see both sides of the argument here.... but i have to give kudos to scott... although he can consider himself being ripped by apple, i like the way he has responded maturely to all of the posts on here.... not your typically fanboy approach on many of the other sites.

cheers all.... enjoy ya iphones i say.

SCOTT'S REPLY: Well, thanks Steve. I try to be representative of both sides. And hang in there. You'll get your turn soon.

I am not a current iPhone owner, however, I agree that Apple should offer the more recent iPhone purchasers some type of prorated discount (the more recent your purchase, the bigger your discount) in the form of a coupon or something. And ultimately, I think Apple will, once it sees how upset and concerned many of its iPhone owners are. So please be patient, iPhone owners - Apple will respond.

My second opinion regarding this matter is that if all current iPhone users would only step aside and stop thinking of just yourself for a moment and consider the bigger picture of Apple aggressively pursuing its one chance and opportunity to gain a lot of cell-phone market share while both opportunity and market inertia is on its side, ask yourself this question . . . if you were about to soon launch your much-heralded iPhone in Europe, Germany, France, and in many other countries overseas, yet you knew many people worldwide had already been complaining about the iPhone's high price tag, and because of this you also knew this was slowing down sales . . . then, if you were EVER going to lower the iPhone's price tag in order to entice more customers and to grab more sales, would it be best to lower the iPhone's price tag now, ahead of your coming overseas launch, and to introduce your phones overseas also at $399 . . . OR . . . go ahead and release the iPhone overseas at $599 -- and then later have to deal with a bunch of angry and upset customers not just in the US -- BUT ALSO overseas too! -- once you ever DID lower the price. Answer: it's far far better to just do your price cut now and get it over with - and especially with the upcoming Christmas selling season. Even if Apple has to pay out $100 to $200 coupons to a few-hundred-thousand upset iPhone owners in the US to keep them happy -- so what, that's still a small price to pay and Apple will easily make up that lost revenue from the massive increase in Christmas sales that will occur because of the price drop. In conclusion: anyway you look at it, if you were ever going to do a price drop, then the best time to do it was now.

Too many people and analysts like to refer to old an outdated business model which suggests that Apple should have waited about a year or more before initiating such a huge price drop on such a popular product - in order to keep customers happy. But the problem with that strategy is, how much money would Apple have lost overall during that year and in the interim through lost sales caused by the price tag being too high? Answer: far more than it could otherwise have gained by taking your medicine and lowering the price now - especially if you're on the brink of seeding your brand new product worldwide! And that's not even factoring in the point that during the interim and while your high-priced product is waiting for a year to go by, you'd be offering plenty opportunity for your many competitors to catch up and to launch similar devices already priced much cheaper, enabling them to easily gain much market share and a competitive foothold in the market. No, anyway you look at it, and regardless of what most people think . . . if Apple was ever going to do such a cut as this, then its best time to do it was now. And it did.

SCOTT'S REPLY: Very informative comment, secret squirrel.

$200 plus tax is what you pay for your iGottaiPhone vanity and impulsiveness, you gotta-have-it-right-away idiots.

Try looking in the mirror for your blame. Projecting your self-'Doh!' onto Apple will only delude you into buying yet another brand-new version 1.0 Apple product again someday, only to start the cycle of 'outrage at Apple' again. Sheesh.

SCOTT'S REPLY: I'm impulsive, and I like vanity. I'll even take the blame for waiting in line if you'd like ... but I'm not a loser. And neither is anyone else here ... they just want a fair shake.

I was "outraged" at the original price. Now I am not "outraged." ;-)

Buy low, sell high. Too bad if you took the plunge early on. Learn a lesson.

SCOTT'S REPLY: And JJIrons, tell us what that lesson is. To wait? That's the lesson?

I bought 2 of the phones at $599. each. We love them and have had several months of use that others have naught. I am fine with the price break. Quit yer crying.

SCOTT'S REPLY: You got a tissue, Brad?

Americans are whiny people with victim attitudes.

A company can cut prices at anytime. Get over it...

People on this board she be more upset with what medical or dental work costs in the U.S. ...rather than a price cut to the iPod.

What a bunch of babies.

SCOTT'S REPLY: Personally, I'm outraged at the cost of going to the dentist. FWIW.

Its your own dumbness for having to be the first to buy the new product!! Plus its a 1.0 product......who buys 1.0 products, expecially from Apple!! And the prices to begin with, were outragous........Maybe some of you learned your lesson.....but I doubt it!

-DB

SCOTT'S REPLY: I asked a previous poster. What is the lesson here? To not buy on the first day??

Bleeding edge crybabies. So the price drop came sooner than you thought. You state ok if price drop comes after 6 months but not after 2 months. So you are saying it was ok for you to pay $200/180days = $1.11 per day for being the cool kid on the block but not 200/60 = $3.33 per day. But the guy buying a new model car in August instead of year end sale model for $4000 less is paying round $30 per day for the coolness.

Also WebObjects cost $50.000, then one day in 2000 it was dropped down to $699 or down by 98.4% !! And in 2005 it was included for free in Xcode.

SCOTT'S REPLY: Björn, that's logical and fair.

This is ridiculous. Is my iPhone "less" because of the lower price? No. Can somebody get a better iPhone than mine at any price? No.

It's still the same iPhone you bought.

Getting it into the hands or that many more people means there will just be that many more apps for it, and web sites that work with it, and IT deprtments that have to support it, etc. This is a GOOD thing, people. Quit cryin'.

Is a price drop this soon a bit unprecedented? Maybe (I don't claim to follow all price drops for all consumer electronics). But even if it is, this IS an unprecedented device, and Apple wants to rock the Christmas season.

Chances are the original plan was to drop the 4GB to $399, but no one's buying them so they discontinued it and put the 8GB there. Bottom line us they likely wanted the entry at 399 for Xmas.

SCOTT'S REPLY: No doubt. It's good for the company and for stockholders.

I don't have an iPhone because of the lock with AT&T-NSA. I do recall however, that most new, in demand products carried a premium price at their launch: those with that "I want that" cache about them. The iPhone was one of those products. It's only been out for a few months but did really well as a PDA, especially in July sales. Marketing decisions don't, and can't, please everyone. Apple could offer some this-or-that to those early adopters, but other than that....

Can't anybody see that they are just trying to get rid of them so that in Jan they can sell the new updated phone? Second gen...that is for me:)

I agree with those saying they are puzzled by the vitriol and outrage.

"Only two months!!"" So are you saying that two months and a week would have been "enough?" What about three months? What is magical and "fair" (your word) about those numbers? Someone somewhere is always buying just before any price cut.

You still have wonderful value for your money that you spent on an iPhone, it still has terrific functionality, you were a beta tester, you bought a full product.

You were the one who decided to buy on the first day. Do you want someone at the door to the Apple Store with a detailed questionnaire: Question #1: Are you really, really sure you want to purchase this device? Question #1: And you won't be upset if market conditions/technological advances/marketing change such that we can profitably reduce prices at any time? ...etc., etc.

Sorry. You can be disappointed you didn't get one kind of "deal." You can also be very happy with the deal you got which was really an excellent one.

SCOTT'S REPLY: As I stated earlier ... 6 months and this goes a whole different way.

I can understand some disappointment with the $200 drop. But the initial price was set based on unknown market expectations of what the iPhone was worth. Now, in September, 1) Apple knows how much it is making on each purchase, 2) Apple knows how much it's getting back from AT&T which might help to subsidize the iPhone price, 3) Apple is starting to get competition from other phone makers, 4) Apple has a better sense of the market size and trends, and 5) the holiday season is coming. Also, the iPhone market would dry up if the iPod touch cost $100s less...but an iPod would never make it at the same cost point as $599.

A different way to think about it the issue: if Apple now feels that $399 is an appropriate price, how would everyone feel if they continued to charge $599 for it till January?

SCOTT'S REPLY: True, Ken. It's impossible to please everyone. So there was probably no magical remedy to bring smiles to everyone's faces.

I knew when it first came out that it was priced too high to sell. But so it goes with early adopters. It's the price you pay for the cool factor of the latest and greatest. I'm reminded of the words of George Bernard Shaw, in Man and Superman: This is the true joy in life. That being used for a purpose conceived by yourself as a mighty one. That being a force of nature rather than a feverish, selfish little clod of ailments and grievances complaining that life will not devote itself to making me happy.

I say count your blessings that you were able to afford it in the first place, think of all the cool stuff you did with it, how worth it you thought it was, and then welcome the newcomers to your party like a friendly host instead of the person they have to call the cops to remove because they got beer on their shoe. I feel your pain. It's not that painful.

I see this as an outrageous act on Apple's part. I've always been able to depend on them for great products and good customer service. Because if this, millions have remained dedicated fans of Apple. Take the iPhone launch for example. Hundreds of thousands of dedicated consumers stood in line and fought to get their hands on the iPhone. Those loyal customers which make up a majority of their consumer market got nothing but a slap in the face from this price-drop. And the worst thing is that Apple hasn't done a single thing to thank these loyal customers. I am one of them and even a $200.00 coupon to the online Apple Store, or something of that sort would have been nice. The lack of response for these customers and the plain, utter disregard is disappointing. This has angered exisiting iPhone customers and a majority of the Mac community to an unprecedented amount never before seen. Because of this, I can guarantee that Apple will never see a product launch as successful as the iPhone ever again because of their choice (and mistake) to ignore their most important and vital component to their success, their loyal consumers.

SCOTT'S REPLY: Actually, David, I think as mad as folks are now ... they will forget by the time the next iPhone is announced.

So, when I go to Macy's and buy a dress shirt for $60, and just a couple days later that same shirt goes on sale for half the price, should I get credit or refund? Everyone wants to get the best deal. At the time you bought your iPhone for $599, that was the best deal. Today, the deal is $399. Being a loyal fan (as I am) does not mean Apple owes me money back when they change the price of a product. The 30 machines I purchased just a few months ago are now a good $200 less per machine. Am I entitled to a credit or refund because I buy lot of machines? Am I entitled to a credit or refund because Apple lowered the price after the time I needed the machines? Being an early adopter does not entitle you to special pricing or privileges. Instead of satisfying my desire to have an iPhone when it first came out, I chose to wait until the price dropped. You chose to buy it early. Sometimes we have to live with choices we make that in hindsight seem wrong. If the price had not dropped today, would you still have chosen to buy yesterday? I bet you would.

The iPhone was "worth" far more than the $599 I paid for it. My answer to anyone who asked was "It is the best phone ever." It still is. And I am happy that now I can buy my wife one, though I am bummed about my AAPL stock price.

SCOTT'S REPLY: Chris, you raise a good point. I don't think any of us are regretting the purchase at all. I think it's just that the people who spent the time testing it for the most part end up payig for the privilege.

I have been a loyal Apple consumer - NO APPLE, NO MORE. I reconciled going in the door to buy the iPhone that I would lose $175 to break my contract with a very good cell phone carrier because the iPhone could only be carried by a marginally good carrier. I knew that - no one put a gun to my head. Then AFTER purchasing I read about all the hassles if you need to get your battery replaced. AFTER purchasing you learn you need a new car adapter, a different charger -- that nothing you have that works with your iPod works with the iPhone.

When purchasing I asked if I could use all the features of the iPhone except the Phone (Which is what I was truly interested in in the first place) - no - not possible I was told - won't be possible. So I bought, laid my money down, waited to get my service activated by a marginal company who took its time - once I was finally up and running I did fall in love with this new gadget. I felt I was finally hitting my stride with it as the updates cleared up some annoying bugs - then WHAM today hit.

$200 cheaper and an iPod that does exactly what I was looking for.

To those of you who say we are whinning -- when you bought your HDTV were you limited to only one provider for your service and a crappy one at that? Did you have to wait a week before your service could be activated? Did you discover that after buying it an integral part - say the plug - could only be repaired by one company and you needed to take your HDTV to that company and be without its service while they changed it? Did you discover after the purchase that you needed to outfit your home with a different kind of plug? and that the headphones you bought with your previous TV won't work? And then 60 days after purchasing that new HDTV no 60 days after it had been introduced - - they dropped the price of that TV by 1/3?

Yes it is technology, and yes prices drop, but they do NOT drop a third of the original price in 60 days. No company other than Apple screws its customers like this...ESPECIALLY on top of all the other problems the iPhone was having.

If Apple wants to improve the iPhone sales they need to improve their image and reputation --not screw its most loyal customers for it was their loyalists who waited in line for what they thought was going to be a reward for being loyal - instead - as someone so aptly put - we paid to be beta testers.I still love my iphone but I am extremely disappointed that Apple used and abused my loyalty and I now walk around with a big CHUMP on my forehead.The disappointment in their lack of integrity hurts far more than the near $600 I am out. I am angry because they used me and highlighted my stupidity in front of a cast of thousands - this is the place the whinning comes from.

I could go on about the retired couple who bought each other one with their savings, and the dad who bought three for each member of his family... there are going to be many of these stories for days to come. I personally think it was a PR disaster for Apple to do this so soon to launch. I cannot think of anything they could do to make most people feel any better about the circumstances or renew people's trust in them.

SCOTT'S REPLY: Passionate, Kathy ... as all my callers are. I love it.

Scott,

You claim you're not a "loser", yet you insist that you have been "victimized" -- you can't have it both ways. Many of your fellow "victims" could hardly wait the three months from the iPhone's announcement to it's ultimate release. For sure, there would have been an ugly scene had Apple said at the end of June that you would have to wait another two months, even with the promise of a $200 price reduction.

The price reduction, regardless of its timing did not make you a victim -- YOU have made yourself a victim. You can rationalize all you want, but Apple didn't make your buying decision.

If Apple would have had to raise the price by $100 dollars two months after your purchase, would you have felt the least bit obligated to send them the additioanl C-note?

SCOTT'S REPLY: I appreciate your input, brotherStefan.

It is interesting that the majority of people who are stating that those who are complaining are whiners, are not iPhone purchasers. It is easy to cry spoiled when it did not happen to you. I'm not going around bragging that I have something you don't. I saved specifically to get my iphone. I was excited to have something new and cutting edge. I am disappointed that a company I trusted used my excitement and my savings to test market a new device. This is why the rest of the industry uses focus groups. Scott, the lesson I learned is to never buy Apple -- especially not the first version. New technology is not to be trusted.

I know people who bought iPods 15 days ago and they are just as angry. A lot of kids, children buy iPods with babysitting money and with money they got by mowing lawns. It is the end of the summer and they proudly purchase their iPod only to find if they had waited two weeks they would have had a way better product. They too feel sucker punched - there must be a better way. I support Apple's innovative developments, I applaud it and am grateful, but it burns us all when we are the ones being burned. It is human nature -- not the reaction of a spoiled child.

I'm Mad! To all those who are calling me a baby for being upset. Please consider buying an iPhone today then send $200 to one of us 'whiners'. At that point you will have received the same "deal" we did. Then post your message of how magnanamous you are. (i.e put your money where your mouth is)

SCOTT'S REPLY: :-)

The upset people are the ones that saved some money by purchasing the 4Gig version only to discover that now people will have the 8Gig and wil have paid less. That is what is really getting to many.

By the way...it is still version 1.0 so anybody buying now do not think you are so darn smart.

SCOTT'S REPLY: Actually, the 4GB iPhones are on clearance for $299. There's no difference between the 4 and the 8 other than the memory storage. So it's the same 1.0 that, by the way, is worth whatever you paid for it.

Ok, so if it will make you feel better, when you go to by your next iPhone, simply donate an extra $200. There, see? It's still the same price as what you paid the first time around.

What a bunch of whiners...

"if I'd known, I would have waited!"

What kind of company announces upcoming price cuts?

"$200.00 is a lot of money to cut!"

You thought it was worth $600.00 when you bought it...why don't you think so now that the product is cheaper?

Sorry you all feel screwed. Those of us with more patience than money come out on the better end every time.

SCOTT'S REPLY: In theory, but nope, not every time. You haven't got to enjoy the iPhone since June 29th.

"Do I think Apple was off base here? You bet. I think they could offer folks like me something for my trouble ... a free case, an AppleCare warranty ... something. $200 is a lot over such a short period of time."

You are off base. Early adopters ALWAYS pay more. Apple owes you nothing. There is nothing unfair about paying a premium to own the latest gadget in the spotlight. You know exactly what the cost is when you plunk down your credit card. If you are still paying off that purchase, you only have yourself to blame.

Early adopters should not be compensated. If you buy a new car, the same holds true: buying the day a model is available will cost you significantly more than when better offers are made available to increase sales. New, hot items sell themselves despite high price tags. Now that the holiday season is about to begin, Apple, in their best interest, is looking to increase sales by dropping the price. Early adopters lose. Every company sets out to make their bottom line look better. Be responsible and accept your financial buy-in.

I can not believe that Steve Jobs would be so brazen as to say "That's just the way it is!". I too remember 1984, but that was not totaly the same. What this reminds me of is the 1984 Superbowl commercial, only Apple is the one that the sledgehammer needs to be the target of now, before they take over any more mindless loyal fans.

I just heard over eyewitness news 7 in NYC that folks who bought phone for past 2 weeks will get refunds. I am very upset

that apple would do such a thing and not compensate us for the little amount of time it has chosen to lower its prices. Shame on us this is a very important lesson for me not to blindly go out and be one of the first to buy apple products I will wait 3 months untill they figure out what the real prices on their products are worth. I feel so used and I know the jokes and egging on from friends and family I will get.

SCOTT'S REPLY: Al, they can get a refund, it's not automatic. The reason is because Apple's official policy is a 14-day return. So they aren't bending the rules or doing anything they wouldn't do any other day.

It's not unfair of Apple to use the excitement of the iPhone to boost their bottom line and raise their margins. It's smart business -- basic economics taught in High School teaches that business is about supply and demand, and when there's a lack of supply and an abundance of demand you keep the prices high and drop them when supply goes up and demand dies down.

Yes, some people will get their feelings hurt that they bought early and paid a premium. However, Apple's in business to make money to continue to fund their R&D and to increase profits for the shareholders as much as possible. Apple's always been a company to charge a premium for premium-grade products.

Those who thought it was worth $599 bought it for $599 and shouldn't gripe. Those who didn't buy it for $599 because they thought it was overpriced can now buy it at $399. Those who delayed -- intentionally or unintentionally -- on purchasing and got lucky on the price should go buy a lottery ticket. And those who just don't want an iPhone for various reasons (including but not limited to hatred of AT&T) will continue to not buy one and might consider the new iPod touch instead.

Boohoohoo on many levels - first, if $200 is that big of a deal to you and you had to go back to eating ramen, the iphone is clearly not in your league.

Why did you buy an iphone? I bought mine to use - the first time I could check my email with HTML and surf safari, brilliant - already worth whatever. It's a great freakin' phone and big deal now two months later the price drops - unlike NBC execs - all tech prices drop.

You were not a beta tester. You got 100% full use out of the phone and unless you were some hermit, the cachet of the iphone was important enough for you to buy one.

Again, if you didn't derive value from the the iphone in 2 months, then perhaps you should not have bought one because clearly you didn't need one. Nowhere on the site did Apple guarantee you the price would NEVER change ...

Ever buy a new car? That first week of driving will cost you $5 to $10k ... same thing.

Other than NBC & music, digital stuff drops in price ... get used to it.

You can get a refund of the difference between the purchase price you paid and the new price if it has been less than 14 days since you bought it. A friend of mine just got a $200 refund on the iPhone he bought last weekend. I asked the Apple Store if that also applied to the iPod Nano I bought for my Granddaughter 11 days ago. They said yes and refunded the $50 difference. (I told her the new models were coming, but she's 13 and had to have it right away).

I don't understand those that say, "I'm done with Apple."

What's the alternative? Agree to the most draconian EULA, perhaps ever, with Microsoft's Vista? Watch as the very same Dell you bought online for $X is being marketed at Wal-Mart for $300 LESS a week later? Spend hours every month downloading, installing and configuring anti-malware software of a dizzying variety?

Bottom line: Mac OS X is the best OS out there today. Moreover, Apple gets it about an immersive and intuitive user experience. Do rapid price cuts hurt, especially in the current economy? Sure they do.

But really, some introspection is in order. How many iPhone articles did you read prior to the launch. I prolly read close to 100 and I was trying to avoid them. From financial sites to rumor sites, they all brought up the same quandry, "How is Apple going to sustain this price point after the early adopters have bought one?"

Unfortunately for the early adopters, the answer was...it wouldn't. And better yet, they LISTENED. Folks want the greater capacity. I'm kinda surprised, actually, that they aren't offering a 16GB iPhone for $499. Would make sense, but again, they realized that folks would simply migrate to the higher capacity and simplifying product lines is something Apple has always done under Steve Jobs.

Is there a lesson here? As mentioned before, Caveat Emptor. When I was in IT, the hardest days came when the product we depended on to do our jobs was discontinued. Not reduced like WebObjects (and folks were REALLY cheesed about that...I mean small shops where $50k is the difference on if someone can stay employed there or not), but removed all together. This move by Apple is very ENCOURAGING. Why? Because Apple gets it that it must remain relevant in order for this entre into the mobile market not to be considered a casual foray, but a serious commitment. The N95 from Nokia is horribly overpriced and the Helio is clunky as a wooden clog. Keeping the iPhone relevant in every way possible benefits the entire iPhone community. It will grow the developer base, grow the user base and grow the ecosystem in such a fashion that the overall experience is that much more enhanced.

One day or one year makes no difference. Every transaction in a capitalist economy is subject to buyer's remorse. However, if the buyer goes in with their eyes open, there is much less chance of this happening.

So, what's the lesson? To wait? Never buy a v1.0 anything? No, of course not. The lesson is that each transaction needs to be weighed with the knowledge that *something* could change in the future that might affect the value of the purchase. AT&T could offer a $100/mo 3yr contract with a FREE iPhone. Think folks would be happy about that? But it could happen at any time. If we weigh each transaction on its merits and discount the hype, almost nothing will invoke this kind of response.

Jmho, ymmv.

Its ok to feel a bit shell shocked for a bit, but you need to keep a bit a perspective. First, it is likely that the iPhone today can be delivered for a good bit less than two months ago. I don't think Apple actually thought they would sell this many phones by now, and they well may have uncertainty (as did everyone else) as to the cost of supply for flash memory in future. And now they are expected to continue to sell at this rate.

The new flash-driven iPods probably helped cut a lot off their flash costs, and help ensure supply at a calculable level. They had to prepare for XMas, and get ready for European launch, where the damn thing will be more expensive anyway.

Having said that I would be cross myself. But cross, not outraged. And probably not cross with Apple, who are new to this bit of the game, and could not be expected to get everything right, including the price. Just cross with the world. Market economies have downsides as well as upsides, and in a market economy, it is the future market that counts - there can be no memory or the company will be one.

Sorry, but I can't feel any sympathy for any of you. Your phones still work - exactly the way they did before the price cut. Presumably you felt they were worth buying at the price you paid initially. Are you all suggesting that Apple should have kept the price artificially higher for another six months? Unless you were planning on reselling your iPhone sometime in the very near future - what difference does it really make to you anyway? I really can't understand the carry on. As long as the phone works as advertised, you willingly paid the set price and (presumably) were happy with it and Apple owes you nothing more than what is outlined in your warranty/service agreement.

That's what you get for sitting there waiting in line to be the first to buy the trendy new iPhone. Yes, you might as well have been a beta tester. That's one of the prices you pay for early adoption.

I don't really have any pity for you. Everyone who analyzed the components of the device after it came out said that Apple was making a huge profit off it.

Now the iPhone is in reach of more people who couldn't afford it earlier. The air of superiority is gone. Apple should be applauded for reducing the price. I am not aware of any other companies who would do it.

I bought an 8GB iPhone on day one. I wasn't expecting this much of a price drop, this soon... but what the heck. That's the price one pays for being an early adopter.

I still love my iPhone, I would NOT have waited 2 months for a $200 price drop (even if I knew about it) - and I'm not the least bit "OUTRAGED"... Sorry, folks.

Get real. Outrage? Sucker punch? Refunds? These would be the first to complain when the iPhone was dropped from the Apple line because it was overpriced.

Premium is the keyword when you need to have the first of anything great. Its a man's world out there boys, grow up and make some money.

Good move Apple. Put it right in the ballpark for everyone to buy.

The outrage I here don't come from real Apple fans. Real Apple fans are affluent enough to where such a price drop is expected of Apple and doesn't matter. Apple does this all the time with it's products. Live with it. If your angry, get another job so you won't gave to worry so much about money.

Bravo Apple! This will be great in bringing in more people who want an IPhone. Since Apple gets a significant cut each month from the monthly fee for each iPhone, the more the users, the more profit Apple makes. yeah! This revenue is like a perpetual income for Apple from the sale of a single iPhone.

Folks, maybe this is new in America because you are used to a longer life-cycle for phone before the carrier drops the price. Elsewhere in Europe and Asia where most phones are bought unlocked, it is a well known fact amongst buyers that phone prices drop 30% or so in about 3 months. So, Apple has been on the same trend, just as any phone maker would. We see these from Nokia, Moto, Samsung, LG & Sony Ericsson.

The surprise is not the price drop, but the question if Apple needed to do it, esp. considering it is a game changing product and still not reached mass market.

Welcome to the world or open consumerism & marketing.

With Apple throwing down the gauntlet, other manufacturers will need to react and drop prices as well. So, your non-iPhone purchases will also get more attractive, in the near future.

This is unfortunate and somewhat unfair (far be it wrong for a company to want to make a buck). As an Apple user since 1980 having been through 15 Macs in my life, I have some crazy idea that 'Apple owes me'. And I do hope Apple does the right thing and makes good (even a $20 iTunes gift certificate). And knowing what I know now- would I have stood in line for 6 hours to buy my 8G iPhone on June 29th? You betcha.

I hung around the Apple store yesterday, and followed the announcements online. As an Apple Consultant, I'm pretty friendly with store staff and management. I asked my friend, "gee... I hope you didn't sell to many iPhones yesterday!" He replied, "We had one customer purchase 100 yesterday after purchasing 100 last week. He is giving them out as promotional pieces filled with his content, for his own business. We are going to call him before he calls us and offer a (rebate). That's a $40,000 difference." No kidding!

It occurs to me that if Wall Street was unhappy with the price cut, it would probably cringe at Apple giving back $200 million to it's "Loyal Customers". I'm one of those fanboys I guess, but I also hold Apple stock. I'd gladly forgo the $200 rebate if it meant keeping the stock from losing me thousands as a share price drop would.

Perhaps Wall Street will change it's mind today though and see the move will garner Apple a surge in iPhone sales especially going into the Christmas season. I've talked with a few "fence sitters" who are on their way to an Apple store to buy one, now that the price is "reasonable".

I'd rather have seen the iPod touch with a hard drive, no such thing as a "Classic iPod", and/or an open source version of the iPhone with 160GB drive. The price points between models is too close don't ya think? Those of us who really want or NEED a portable player/hard drive would buy one like that. I would have sold my 8gig iPhone for $300 or less, had they released that "Enterprise" model.

That would mean I could replace my cellphone, mini-hard drives and iPod with ONE DEVICE. My roller case run-ith over! http://www.alearner.com/wordpress

hahaha, I too was an early adopter and I brought it to Asia for my travel and got whacked $1,500 in data charges bt ATT cos the phone kept on toggling between Wifi and EDGE (the former with no charges while the latter attracts fat charges). Just an example, ATT charges 5cts per KB and if you happen to read an email which is 50 KB large, that is $2.50 man. Sp all in all, how much have I spent so much on the iPhone? Mind boggling.

What do I do about it? I go long on the stock. A cut in price like this ahead of the holiday season, with the "lust factor" still very warm, this iPhone will sell like hot cakes. I hope to make back my money in ths stock price. Wink.

Boots

so, if manufacturing costs go down, demand subsides, technology improves, etc. Apple is not allowed to adjust pricing or rev their product lines because you bought one? Time to introduce yourself to real life. Welcome to the world of consumer electronics. If you can't deal with it, I suggest finding a cave to go cry in.

I bought iWork '06 full price a month ago, too. Where's the blog I can post my outrage to? Oh, here it is: caveatemptor.org.

Scottie boy,

YES! You got it. WAIT. If you jump in with a silly grin of "I just have to have this NOW!" Then don't cry when things like this happen. HASTE indeed makes waste. Can you tell me Scottie, why your life is better for NOT waiting? I can show you how mine is (in this particular case) $200 ahead by not having ants in my pants...

First, your ire is being pointed in the wrong direction: Apple SUGGESTS a retail price, AT&T actually SETS the price. But let's skip that for now...

Why is it that the people I know that purchased the iPhone displayed it like a trophy when they first got it? The reason is that THEY were the first ones with an iPhone! They got to tell stories about waiting in line. They got to show off this REALLY cool thing that nobody else had yet.

And they were happy.

So you paid a premium to be the first get the newest/greatest/coolest gadget on the market. That's normal. Look back a year when the PS3 and wii came out--people paid above MSRP for those machines...if they could find them. And they didn't care. They got to tell stories about waiting in line or finding it on the internet. They got to show off this REALLY cool thing that nobody else had yet.

Sound familliar?

Jobs is pretty unapologetic about this:

http://www.usatoday.com/tech/products/2007-09-05-jobs-qanda_N.htm

Given the timeframe this all occurred within, this is damned NASTY.

It sounds like a lot of "sour apples" to me! Hey! You wanna be the first on your block to own a new product? ... Be prepared to pay the price! Quit your crying ya big baby! You had your month in the lime light and now the bill has come due! Enjoy!

I'm so glad I decided to wait to get the new iphone. I knew that with this thing being so new to the market, that there was going to some sort of weird thing that was going to crop up that would make them have to back and decide to make some kind of change or whatever. Little did I know that it would happen in such a short time span or that it would be a price decrese. Wow! I think I'll just wait til x-mas or beyond, because they may just reduce the price again.

Wow, wow, and wow.

Over the last three years, I have become an Apple advocate that is almost annoying to those around me. I have made it my job to personally push Apple product as a true believer and unashamed fanboy. They became my home team and I loved supporting the company -- I bet I have helped convince dozens of PC users to switch.

No more.

If they care so little about me as an Apple supporter, I will return the favor. No more iPhone gushing to friends. No more lobbying PC fence-sitters to join the club. Won't be boycotting Amazon.com and NBC for videos this fall -- happy to throw my former iTunes $$$ over there.

I love their stuff, but this level of distain for their best customers has made me no longer love the company. And good luck in ever getting me to buy a new product in the first year.

And by the way -- $200 to me is really not that much. Has nothing to do with the dollars. Everything to do with what this move says about how Apple values me as a customer, advocate, and partner, which is truly how I used to see myself.

I didn't see this mentioned, but if you used an American Express to purchase the iPhone at any time since it has been on sale, you are covered (American Experss will refund you the $200 plus local tax).

Just call 1.800.297.8019 and press "0" to speak with an operator. It took me five minutes and they explained that while the iPhone is slightly out of the price range for their consumer protection program, they are doing something special JUST FOR iPhone customers....they didn't even require documentation - I just had to know the date and amount of purchase (which I easily accessed with their on-line statements). Easiest $200.00 I ever got.

And American Express is GENIUS for scoring a coup during a total PR nightmare.

I always tell my friends/family to use Amex and this furthers my reasoning.

I feel for the early adopters. Had I been able, I would have purchased one within the first week. I would be a bit miffed right now, maybe pissed.

I was doing some reading, and the RAZR debuted at $500 (exclusively on Verizon, I think) and within a year it was $100. That's an 80% drop in one year. To have an equivalent drop on the 8GB iPhone, the price would have to drop another $280 in the next ten months. I SERIOUSLY doubt that will happen. My point is that this kind of thing has happened before, so it is not unprecedented or unheard of. I think it is just that no one expected Apple to do it.

I think the reasons for this are:

1) Costs have gone down

2) The price needed to fall in line with the iPod Touch ($100 more gets you a phone, camera, etc...)

3) Steve Jobs wants to "go for the jugular" in the market

It would be nice if Apple would offer some compensation; they have done something similar before.

Scott, I'm puzzled by the reaction of you and others.

First, six months would have been OK? You're telling me that you really expected the first iPhone price drop to happen 4 days after Christmas? How did you not expect something like this? I guess it's possible that they could have waited until October, giving you 4 months, but this move makes a lot of sense -- the iPhone has done well and this change should significantly increase sales and create some momentum that will likely carry through the holiday season.

Second, this was a totally new product category for Apple. There was going to be some experimentation with the price.

I bought my iPhone on the day it was introduced because I decided that it was a great phone (or, as some of your cynical readers would have it, because I needed to "look cool") that was worth $600 to me. I'd been a longtime Sony Ericsson P800/P910i user and had paid way more than that for previous phones. I knew I could wait and get a cheaper/better iPhone in the near future. I think you should be a little less bitter about this.

Yes, total disaster. My battery goes dead without me even doing anything half the time. Totally ridiculous. Nobody can service the thing locally and there is no reception half the time for YouTube or anything.

MAJOR ISSUES:

1. No video recording

2. Phone stinks and you always hit wrong button

3. Camera is way too sensitive and I always turn it on when grabbing the phone

4. Sometimes the battery lasts 4 hours, other time 10 hours.

5. When it says battery 20% near dead, that means you have 10 minutes left to use it

6. Phone quality is poor

7. Volume quality is piss poor for anything except headphones

8. I have the 8 Gig version, but the less you have on it the better. Forget movies, they kill your battery in an hour.

9. There is nothing to grip the phone so it slides or drops easily - get a case that wraps around it - YOU WILL DROP IT!

10. Sometimes I have 5 bars in my house, sometimes none!

11. Do online billing.

12. First bill was $148.00 - nice!

13. I would rate phone a 6/10 overall.

$200 price drop is an insult/outrage and too soon for devoted Apple users so I sold my Apple stock today!

5.

http://www.apple.com/hotnews/openiphoneletter/

"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."

well Scott looks like you called it from the very begging congrats

on your very accurate forcast. Sunny days are back.

I didn't buy an iPhone. Thought I'd wait till the price dropped. Didn't expect it to drop so soon. I'd really be disgusted if I had bought one.

One thing some people can do: I think the cell phone companies will allow you to return a phone within 14 days if you don't like it. I know Sprint has this policy, but they don't advertise it. So if a person bought an iPhone from AT&T within the past couple of weeks, he might be able to return it, get a refund and then buy another one for 200 bucks less.

I grew up with Macintosh (Being born in 1984), as my parents were both big fans.

I currently don't have an Iphone, and only about a year ago bought my first Ipod. Why you might ask? Exactly reasons like this.... Apple Computers makes some really nice products in my opinion. But they do seem to suffer from the "Beta blues". I never buy anything thats brand new from them (Its almost like, just like their Garage company roots, the first few versions are doomed to some kind of problem, whether its OS bugs, randomly and inexplicably Failing batteries, or Pricing Snaffus, though Apple is usually really good about trying to fix w/e problem arises), I always wait a good long while. Im still using a Factory refurb Imac from the late 90s and won't replace it until I absolutely have to (The longevity of their products, barring the randomly failing batteries of some portable things, has always been good for me), and even then, Im going to be buying last years model or some such. Apple has always been really good at innovation, and since incorporating, Marketing as well, a winning combonation if you ask me. But their track record I think speaks for itself, I buy the slightly used, or "Was new a year ago" stuff, and have never really had any major problems (Again, barring the battery thing). The problem with being innovators? The brand new stuff is always going to have hitches of some sort. I understand and accept that, but it means Im not gonna buy anything brand spankin new from em either, if only to save the hassle of dealing with returns, expecting refunds, or w/e else may rain down upon us from the Consumer gods.....

Falcus

Finally! Someone who has expressed my anger and frustration perfectly. I am not sure what's wrong with the media (newspapers and TV) covering this story. I have yet to see any news about the overall customer outrage.

And Apple discussion boards immediately delete any negative comments -- of course they are famous for this.

Apple has slapped its most loyal fans in the face. No. It's more like a punch in the gut. It's not the money -- but the principle.

A $200 price cut in just two months? And then, to add insult to injury, a $100 "in-store" credit. Better than nothing. But Apple has soured itself in my view.