September 5, 2007 - To quote the New York Times: “Apple unexpectedly cut the price of its iPhone Wednesday, claiming that it was seeking to broaden the market for the popular but expensive phone for the Christmas season. Apple, which rarely drops the prices on its products, cut the price of the 8G iPhone by $200 to $399.”
People got mad. Steve Jobs snapped out a weak, late response. And explained it in a throwaway. How could Apple make so many mistakes all at the same time?
I’m mad, and I'm not the only one. This guy is mad. This guy is mad. This girl is really mad. CNET is watching our backs. The Unofficial Apple Blog is all over it.
As one who has detailed my love affair with iPhone here at the Digital Hive and at my other space, I am having a hard time feeling anything but sour over the whole price drop episode. After chewing over the events that unfolded this week, I’ve encapsulated my aggravation into these few, short bullets. Please pay attention Mr. Jobs.
1. You spent millions of dollars marketing the product on television. Everywhere I went people were buzzing about iPhone and I knew I wanted one from the first moment I saw it. I wanted the product in a way I have never wanted a gadget – ever. (Barbie’s Dream House with working elevator does not count as a gadget.)
2. I learned as much about the product as I could, it was torture as you dribbled out information and your cellular partner finally revealed plan pricing in the final week before the launch. I was patient. I was a geek fanboy.
3. I waited in line. Granted, I didn’t spend my day at the mall in camp chair with cooler and camelback. But I waited in line. For a phone.
4. I have evangelized your product for two months, non-stop. I love my iPhone. When complete strangers (but not outwardly dangerous-looking people) ask “can I touch it” I give them the full demo. I have let each of my co-workers get a hands-on demo. I had nothing but good things to say about iPhone and Apple. Because Apple has never slapped me in the face before.
5. Today I look like an idiot. A yutz. Plain foolish. I get to hear things like “Don’t you feel stupid for not waiting” several times a day. Yep – I sure do. Does it diminish the quality of the product? No. Does this experience diminish the quality of my affection for the company? Yes, approximately 33%.
* I’m going to use a real world example for you Mr. Jobs. Suppose you ran down to your local Mercedes dealer to pick up say, an SL65 AMG. The MSRP is around $130,000 – then 60 days later the price drops by 33% making the new price $87,100. Would you feel a little bummed out? With all that extra cash you could have gotten so many more accessories for your little dream machine. Would a credit for half the difference to a future purchase ensure you customer loyalty? Nah – that’s silly!
Is the situation a little clearer for you now? Mr. Jobs I want you to be successful, but not to the tune of paying 33% more than those who didn’t race to promote your newest product to friends, family and even complete strangers. I want my $200 – I'll even take it in store credit.
Respectfully submitted,
Lori Magno
*Purportedly Steve Jobs' actual car.