Posted by: hmillic | September 7, 2007

Cry me a river iPhoners……

Apple’s decision to drop the price of the iPhone by 200 bucks on Wednesday created such an uproar that I feel the need to re-enter the blogosphere. I really don’t understand what the early adopters of the iPhone are complaining about. Did anyone MAKE them buy one? Yes, it sucks that the price gets slashed less than three months after it’s introduced, but that’s the way it goes in the tech world. It’s called the shiny-spankin’-new-gotta-have-NOW tax. Of course we all want one, they’re friggin’ awesome, but everybody knows that cutting edge technology always carries a hefty price tag for the people that just haaaaaaaaad to be the cool kids on the block. Look at the Razr phone, which was like 500 dollars when it came out, and now you can get them free with a service plan and they’re everywhere. It’s all about demand and what’s hot at the moment. Athough no one expected the price slash would happen so quickly, it’s a no-brainer move on Apple’s part. They priced the phone based on its buzz-worthiness, and after the most loyal/stupid Apple followers shelled out 600 bucks to have it immediately, sales inevitably cooled down, because the price tag was so outrageous. I expected the cut to happen around the end of October to prepare for the holidays, but Apple clearly has another strategy in mind. I think its a great one, it keeps people salivating and opens up the product to a wider base. I still think its a mistake to have an exclusive deal with a crappy service provider, mostly because you miss out on the global market, but I guess Apple is just trying to keep the iPhone exclusive. If everyone has one, its not as sexy ( a la the Razr) right?

iPhone users whined and complained so ferverently, Steve Jobs almost immediately announced that they would be offering a 100 dollar store credit to people that bought the phone at the old price. At first I thought, what a stupid move, but it’s actually brilliant. They boost sales by dropping the price, pacify the angry iPhone incumbents with the kickback, and they’re not losing any money because you have to spend the refund with Apple.

The moral of this story? WAIT until the next version comes out, especially with phones. The market moves so fast in this area, in addition to price reductions, companies will have to add new features to stay ahead of the game. Apple has already announced that it’s adding a ringtone feature and WiFi (in limited areas) for purchasing songs over iTunes. There are still a bunch of things they need to add to the iPhone, like bluetooth and GPS, to make it the sweetest phone ever, but Apple will probably roll that our next year.

I’d also like to comment on the other major announcements Apple made on Wednesday, notably the introduction of the iPod Touch. What’s the point of paying 399 for 16 gigs of memory, when you can get a 160Gig iPod or an iPhone for the same price? There are a couple of features on the iPod Touch that the iPhone doesn’t have, but that will be short lived. You can read a comparision of the iPod Touch and the iPhone here.

I do like what they’ve done to the new nanos, even though I don’t like the shape as much. They’re still eensy weensy!

In closing, it’s been a big week for Apple, I’m excited to see what else Mr. Jobs has up his sleeve!

Ps. I really do want an iPhone.


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