Stephen Tillotson is an undeclared sophomore. He can be contacted at [email protected].The Apple iPhone, which was released earlier this summer, originally cost $599 but has since dropped $200 off its price tag.
The iPhone can do a number of tricks, with music and wireless Internet capability. It can play YouTube videos and has a fancy touch screen.
While the technology is well worth the cost, many customers who paid the original $599 are disappointed at the sudden, significant price cut.
The CEO of Apple, Steve Jobs, posted a letter on the company Web site apologizing for the price cut. He also said that credits of $100 will be given to customers who paid the original price.
The fact that the CEO of a major company like Apple would post an apologetic letter almost seems heartwarming.
The problem is that it’s all about business.
By putting together a well-written apology and offering $100 credits, Jobs makes iPhone customers happy and doesn’t lose too much money in the process.
Apple is going to make money regardless of a few angered iPhone customers, simply because of the Apple brand.
The point is that Steve Jobs knows that the iPhone (and any other Apple product for that matter) will sell even without smoothing out every little problem the customers have.
He knows that image is everything and profits will only increase if he comes off as a nice guy.
If people know that companies are chiefly concerned about business, griping about a price cut is totally uncalled for.
With as many products as Apple has produced over the past five years, every one of their customers should know that the product is much more expensive when it is first released. It doesn’t take a rocket scientist to figure that out.
I don’t agree with either price for the iPhone, but I don’t blame Steve Jobs for high prices or a sudden price cut. He knows that people will buy Apple products no matter how expensive they are.
He is a businessman and he is there to do business and make money for Apple. It’s as simple as that.
I think customers tend to forget that big companies are only worried about turning a profit. My advice to customers who feel betrayed by a sudden price cut is this: don’t pay $600 for a phone.
Unless it can fly or end world hunger, wait until the price goes down to buy it.
Categories:
iPhone price cut not very exciting
Stephen Tillotson
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September 10, 2007
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