Jobs Offers Consumers a “Poison Apple”
As expected, Apple announced the release of new iPods. There’s the new iPod Nano, which is smaller and not so attractive. Then there’s the iPod Touch, which is a phone-less iPhone and sure to be the rage this Christmas season. Along with the announcement of new iPods, Apple CEO Steve Jobs also announced price cuts for the iPhone - a product that’s only been on the market since June 29. Jobs also crapped all over the thousands of people who stood in line for days at the product’s release.
This was a horrible move for Apple, one that they soon addressed by offering a $100 store credit for people who already own the iPhone. Still, it was hard for me to wrap my head around why he would lower the price of the hottest device on the market. Of course, I’d heard rumors about a number of buggy iPhones; however, any news about widespread failures have been kept out of the press. With the price drop, it made me suspect that iPhone failures and problems are higher in number than anyone knows about. I also heard an unconfirmed report on a radio show during my morning commute that Apple is having trouble selling iPhones. If true and demand is not as high for the iPhone than expected, then it makes sense that Apple would slash the price. By the laws of economics, when demand is low and supply is high, the price drops. Economics aside, when I look at the bigger picture, I still think this was a slap in the face to Apple’s consumer base and any future potential costumers. Apple has a die-hard loyal fan base, but I’m sure some of those raving fans who bought the iPhone at release time cried foul. This misstep will make some future costumers pause when shelling out their hard earned money with anything that has an Apple logo on it. I know it gives me pause when it comes to a possible iPod Touch purchase. How do I know Apple won’t offer a version with more capacity in six months and drop the price on the ones they’re trying to sell now? It’s a question you now have to ask because Jobs stuffed a poison Apple down its consumers’ mouth.
September 8th, 2007 at 1:53 pm
Hello:
I have to disagree with you about Apple giving us a poisoned Apple. In the technological world, every time a product is launched, many other versions are already in the pipeline. These products have greater features and cheaper prices.
Take a look around at TVs, digital cameras, DVDs and so forth. Apple is doing what it’s supposed to do in the mobile domain. You can be sure that Apple will attract a helluva lot of new customers to its tent with the slashed price.
I think that Apple should have announced the $100 store credit simultaneously with the product launch as a special treatment to its loyal customers.
When you pay a high price for the newest product on the market, you are actually paying for the “thrill” of having a product in your hands nobody in the neighborhood has. This has a price.
Just my two cents worth on the subject.
Regards,
Omar.-
September 9th, 2007 at 2:29 am
I agree that a new version of products are in the pipeline; however, I seriously doubt Apple has version 2.0 of the iPhone ready after only two months. I also agree that some customers will flock around the iPhone with the slashed price. Still, I think some people will hesitate on buying after witnessing the price cut debacle.
I think that the price cut came way too soon. I don’t deny that companies in the cell phone market slash prices of products, but I’ve never seen that happen so fast and for a product that’s the new “Razr,” the former must-have cell phone. I just see shades of Motorola in Apple by announcing price cuts and am surprised they did it two months after product release.