Sep 5th, 2007 I’m Just a Loyal User, So Ignore Me
Infatuation is a scary thing. It can drive passion, but it can also impair judgement. In the case of Apple, Inc., it’s clear they’ve become more infatuated with their products and business plan than with their users.
To be clear, I’m writing this in an admitted state of frustration and confusion at Apple’s recent decision to drop the price of the iPhone. It’s not the price-drop itself that I’m frustrated with, it’s the timing. It’s easy for some early adopters to justify the $200 premium we paid, most got theirs on day-one. For those of us who waited a month to six weeks to make the plunge, we just paid an extra 30% for 30 days of iPhone ownership.
If the AT&T rep had told me on July 30th — the day I got my iPhone — I could pay $399 on September 4th, or pay an extra $5.50 per day for the next 36 days to have it then, I wouldn’t have blinked before saying I’d wait. It’s not that I don’t think the iPhone is worth $599 (and thanks, John, for the reminder of how supply and demand works), it’s that Apple doesn’t think it is; they just told us so today.
So was the iPhone priced too high to begin with? Sure, maybe. But almost half a million people didn’t think so, and bought the thing despite having never used (or even touched) one. In doing so, those brave people validated all the hype that led up to the iPhone launch; which, ironically, has now enabled Apple to more aggressively price it.
What Apple should do is reward the early adopters. It wouldn’t take much; something as simple as an iPhone software update that includes the top 5 requests they’ve received. Heck, I would’ve even taken a shout out at the media event today. It would’ve been nice to hear: “Thank you, by the way, to those who purchased the iPhone prior to today. It’s because of you that we’re able to offer it to the rest of the world for this price.”
Who knows. Maybe Apple does have some plan to make it up to us. I hope they don’t think the ability to buy music over WiFi is it.
Update: A day later, and Steve’s made amends. Told you it wouldn’t take much.
Sean Sperte is Geek & Mild. His passion for technology and media, along with his interest in 
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Comments
Scott
September 5, 2007
My sentiments exactly though I’d be much less annoyed to have payed the extra $200 for mine if I could just use the darn thing as an actual phone… Stupid Canada…
Shawn Blanc
September 5, 2007
I think we all knew Apple would be dropping the prices. But it did come as a shock at how drastic the price cut was and as soon as it was.
And I see your point about Apple telling it’s consumers that they overpaid. That is a bummer.
But I have to admit that I am pretty stoked because I was able to pick up a brand new 8GB for the same price as a used 4GB.
John Stansbury
September 5, 2007
You’ve been IIvxed
This used to happen when people bought hardware before Macworld. They’d show off something faster and cheaper, and then there’s be a flood of people mad at Apple for selling them something that is now obsolete after 5 days. I’d say the same thing to them I’d say to you, “if it was worth it to use it a few days or weeks earlier, would you pay the extra few [hundred] dollars?”
I got sick of the hype machine people were making the iPhone to be. It was the first of a new product line, and it was a phone. Big frick’n deal. But to those who’ve had the pleasure of using the thing (yes, I want one, no I don’t have the money), obsolescence is the only thing you have to look forward to in the future.
I type this all on my Fall 2005 era non-Intel G5 that’s staring down that very barrel.
Brendan
September 5, 2007
The iPhone is still just a mobile device. It’s sold very well and has an amazing feature set, but it isn’t gold, or stash of diamonds. It will depreciate at a frightening rate.
The price drop will have been helped, ironically, by the volume of sales, but the cost per device, was always going to drop. We kept being told that it rocked, that it was amazing, the best phone ever. That well may be, but to be shocked that a price drop of such proportions ($200) happened at all, is a bit hard to accept.
I would suggest any price drop would have been a shock, because the hype surrounding the device has been at such a pitch that it’s set everyone up for a fall. It’s been billed as more than just a phone, more than just a media player.
There is no such thing as a “good time” to buy technology. Anyone who has every bought anything gadget-like will know that by now.
If you feel put out, then follow up with Apple – but being sore because they dropped the price, which allows more people the ability buy, one of your very own gripes, just seems bizarre.
martin
September 6, 2007
Surely it’s just the price you pay for being an early adopter? The premium one pays for having to have the phone as soon as it’s released. If that premium is more than you’re prepared to pay, you wait until the first rev. Happens with most new products.
Doesn’t make it any less annoying of course. I’m glad I’ve procrastinated over buying a 4Gb Nano. I’d be mightily pissed off if I’d just paid $AU279 for one given what’s just been released.
Really love your site, by the way.
Mark
September 6, 2007
To me, the price drop felt more like a minor jab to the ribs compared to the typical Rochambeau experienced during Apple’s announcements. I was happy to find out that my device hadn’t been obsoleted 8 weeks after purchase. I can’t remember the number of times Apple’s just stopped supporting a protocol, tripled the functionality / capacity / compatibility, etc… of the device I’d bought 2 weeks prior. I’ve felt for a long time that Apple cares more about innovation than it’s customers, so the price drop came as no shock, but rather as relief that my purchase hadn’t been immediately out-moded. Sadly, I can’t think of another company from whom I’d tolerate such behavior. lol
Ben G.
September 6, 2007
Sean, if I were in your shoes I’d feel slighted too. I just got my first iMac and if they turned around next month and dropped the price by 30% I’d be a little frustrated. It won’t stop me from buying Apple products though. They’re still the best in the market.
Patrick Haney
September 6, 2007
We all knew the price was going to drop, though I doubt anyone thought it would be this quickly. But if you’ve ever purchased an Apple product before, you should know how this works.
Supply and demand. Yes, most of us know how that works. But John Gruber makes an excellent point. If you (or anyone else) didn’t think the iPhone was worth $599, you should’ve waited until it was cheaper. But the fact is, Apple thought it would be worth that much to people, and they knew they’d have a limited supply at launch, so they asked us to pay it. And thousands of us did just that.
I’m not upset about the quick price drop at all. Out of all the people who got theirs on launch day, I probably should be. Not only did I wait in line for 5+ hours and then pay $599 + sales tax, but I also paid $550 to fly to California and rented a car for the weekend for $350 (it’s a long story). So while your iPhone cost you $600+, mine was close to $2,000.
It’s the world of technology, and it’s also good business for Apple. But what it really comes down to is, are you happy with your iPhone? I know I am. $600 (or should I say $1,600) well spent.
James Collins
September 6, 2007
I doubt I will own an iPhone until there is something done about this mandatory 2-year thing with AT&T. Being tied to one provider for so long make me feel icky.
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