MacDailyNews - Where Mac news comes first

Apple Store

5 Day Most Commented

Opinion Archive

Current Headlines

Latest Joy of Tech

  • Latest Joy of Tech!

MacNN

AppleInsider

MacMinute

Macworld UK

Yahoo! Finance AAPL

iTunes Top 10 Albums

Mac OS X Downloads

Sat, May 17, 2008 - 03:26 PM EDT  —  AAPL: 187.6201 (-2.1099, -1.11%) |  NASDAQ: $data[1] ($data[4], $percent)"; //close the filehandle $fp fclose ($fp); ?>

Apple CEO Steve Jobs posts open letter to iPhone customers, gives $100 store credit
Thursday, September 06, 2007 - 03:28 PM EDT

Apple CEO Steve Jobs has posted an open letter to all iPhone customers on Apple's website. Here it is verbatim:

To all iPhone customers:

I have received hundreds of emails from iPhone customers who are upset about Apple dropping the price of iPhone by $200 two months after it went on sale. After reading every one of these emails, I have some observations and conclusions.

First, I am sure that we are making the correct decision to lower the price of the 8GB iPhone from $599 to $399, and that now is the right time to do it. iPhone is a breakthrough product, and we have the chance to 'go for it' this holiday season. iPhone is so far ahead of the competition, and now it will be affordable by even more customers. It benefits both Apple and every iPhone user to get as many new customers as possible in the iPhone 'tent'. We strongly believe the $399 price will help us do just that this holiday season.

Second, being in technology for 30+ years I can attest to the fact that the technology road is bumpy. There is always change and improvement, and there is always someone who bought a product before a particular cutoff date and misses the new price or the new operating system or the new whatever. This is life in the technology lane. If you always wait for the next price cut or to buy the new improved model, you'll never buy any technology product because there is always something better and less expensive on the horizon. The good news is that if you buy products from companies that support them well, like Apple tries to do, you will receive years of useful and satisfying service from them even as newer models are introduced.

Third, even though we are making the right decision to lower the price of iPhone, and even though the technology road is bumpy, we need to do a better job taking care of our early iPhone customers as we aggressively go after new ones with a lower price. Our early customers trusted us, and we must live up to that trust with our actions in moments like these.

Therefore, we have decided to offer every iPhone customer who purchased an iPhone from either Apple or AT&T, and who is not receiving a rebate or any other consideration, a $100 store credit towards the purchase of any product at an Apple Retail Store or the Apple Online Store. Details are still being worked out and will be posted on Apple's website next week. Stay tuned.

We want to do the right thing for our valued iPhone customers. We apologize for disappointing some of you, and we are doing our best to live up to your high expectations of Apple.

Steve Jobs
Apple CEO


Source: http://www.apple.com/hotnews/openiphoneletter/

Don't let the noise of other's opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. - Steve Jobs, June 12, 2005

MacDailyNews Take: Above and beyond the call of duty? The squeaky wheel gets the grease? Insanely great or greatly insane? Too little, too late? The foundation of justice is good faith? I love it when a plan comes together? Do what you feel in your heart to be right, for you'll be criticized anyway; you'll be damned if you do and damned if you don't? The customer is always right? It was preordained? Played like a fiddle? That you may retain your self-respect, it is better to displease the people by doing what you know is right, than to temporarily please them by doing what you know is wrong? Keep true, never be ashamed of doing right; decide on what you think is right and stick to it? The secret of life is honesty and fair dealing; if you can fake that, you've got it made? If life were fair, Elvis would be alive and all the impersonators would be dead?

Hey, we've got hundreds of 'em. What's your take?


  • Social Web
  • E-mail






Always -- Free ground shipping with orders over $50 at the Apple Store.

Reader Feedback: ( = registered)

Sep 06, 07 - 03:32 pm Comment from: iYann

Wise decision

Sep 06, 07 - 03:33 pm Comment from: January 24, 1984

That is why I have bought over 50 Macs!

Sep 06, 07 - 03:34 pm Comment from: Drifter

Wow. Moses has come down from the mountain with the tablet.

Sep 06, 07 - 03:35 pm Comment from: x

90 million buck decision. Smart. I bought my iPhone 12 days ago, so I get 200 back. Jobs be da man. Naysayers, eat me.

Sep 06, 07 - 03:35 pm Comment from: Eric

*Cry* Thanks Steve. You make me love you even more. I love my iPhone!

Sep 06, 07 - 03:35 pm Comment from: ken1w

What? No one has complained that it's not $200...

Sep 06, 07 - 03:36 pm Comment from: pieter De Becker

I would want one for 599 NOW!!! (I live in Belgium)

Sep 06, 07 - 03:37 pm Comment from: -Diz.

w00t!!

Of course El Jobso isn't going to return the full $200, but this is the right thing for him to do.

Sep 06, 07 - 03:39 pm Comment from: Chris

Hopefully this will stop the whining...

Steve's right. There is always something better on the horizon. I was one of the first to buy a 15" macbook pro. Now they are faster, larger, and much more reasonably priced. That's just the way the "technology cookie\" crumbles.

This is a very gracious gesture on Apple's part. Don't expect the same from other companies.

Sep 06, 07 - 03:39 pm Comment from: Sunlokyee

for someone who has already gotten over the 200 dollars price cut, this is like free money.

Sep 06, 07 - 03:39 pm Comment from: Rog the Dodge

good Idea I did not expect this. Im an apple nut , stock holder and I also Own a retail Business This $100 Store Credit Will get $ 200 in Puchsese. Another good Idea

Sep 06, 07 - 03:39 pm Comment from: rob

Not a 90M decision exactly -- it is store credit, and so given apple's margins, it's more like at most a 45M decision assuming 900K units sold.

Sep 06, 07 - 03:40 pm Comment from: Bill Fant

Two good moves...

Lowering the price just before the holiday buying season and making early adopters feel better.

I've had my iPhone since day one and although the price drop stung a bit, I was not all that upset... this sort of thing happens all the time with new technology (CD burners, DVD burners, Blu-Ray, Razr, etc). There's often a hefty price to pay for any early adoption of something totally new, but the early months of smug and usefulness is a lot of fun.

Apple/Steve are making a good call on this one.

Sep 06, 07 - 03:40 pm Comment from: Macromancer

now manybe the crybabies will STFU.

yes i have an iPhone. Yes i dont care they dropped the price.

Sep 06, 07 - 03:40 pm Comment from: David Sylvian

Still disappointed. I suspect this decision was considered long before the iPhone was launched on June 29th. Steve is a savy and brilliant Man. That said, we early adopters should receive the $200 break. After all, it is us loyal customers that made iPhone a success, Without the strength of the Apple consumer community there would be no Apple. I fear that as Apple continues to grow that it will be very easy to forget the customers (fans) that stood by Apple during the not so profitable years.

Apple needs to remain loyal to those that support Apple.

Sep 06, 07 - 03:40 pm Comment from: Jamie

Makes perfect sense. Those in the normal 14-day window for price matching get the full $200. Those who have had the benefit of using the product for a while get a prorated $100 store credit.

And the really savvy people with credit cards that do price guarantees may just get their cake ($200 refund) and eat it too ($100 credit).

Sep 06, 07 - 03:40 pm Comment from: Scott

Kudo's to Apple and Steve. This is the best way to unpiss-off many iPhone owners. I didn't want or expect $200 back. But something is what was needed, and I am glad that it is going to be what it is.

This simple act will help everyone in the public trust the company and know that the company cares about their customers after the purchase. Great job and great choice. Thanks Steve and everyone at Apple.

Sep 06, 07 - 03:40 pm Comment from: eric

cue bitching about it being "only" $100.

MW: would—Would you shut up about it already?

Sep 06, 07 - 03:41 pm Comment from: R2

I wouldn't have given you shit.

Sep 06, 07 - 03:41 pm Comment from: rancher

Nice - appreciated - not necessary - but I'll take it. They did the same thing with Aperture. Very classy. Been a Mac-Apple buyer since the Apple II. Lived through the bad years without Steve and am enjoying the years WITH Steve immensely. This is just ONE reason why I appreciate Apple and the Mac. Yeah, yeah - I'm a fanboy and drank the Kool-Aid. So what!

Sep 06, 07 - 03:42 pm Comment from: shawn

Steve,

This is absolutely the correct thing to do. Most people that bought the phones aren't bitching about the money per se but about the drastic price cut so soon after the release. It just hurts a bit. We could've initially used that $200 elsewhere in the store and now we can! It still helps you guys out and it makes me love Apple even more than I did before!

Sep 06, 07 - 03:42 pm Comment from: dannyg

bought two refurb 4G iphones last week for $399 each. just got off the phone with apple: they're giving me a $150 refund on each of 'em. sweet.

Sep 06, 07 - 03:42 pm Comment from: Georgy Porgy

Now, all you crybabies, shaddup!
Thanks, Steve...enough said.

Sep 06, 07 - 03:42 pm Comment from: Fatty Arbuckle

Control, meet Damage.

Damage, meet Control.

Shrewd move.

Sep 06, 07 - 03:43 pm Comment from: schmluss

Apple makes me a happy customer. I don't think ANYONE would have been mad if they lowered the price by $100. So this is a good move on Apple's part. It will also give me a chance to buy stock after it goes down again tomorrow.

If they would add Exchange Support, there would be NO reason not to buy an iPhone.

Sep 06, 07 - 03:44 pm Comment from: Not just wise

A blood FAIR and obviously very APPLE move.

The only company on the planet to teach all others how to deal with consumers.

Steve - you are amazing!!!!

dd

Sep 06, 07 - 03:44 pm Comment from: Thao

*sniff* I love you again Steve. Thank you for acknowledging that your most fervent supporters.

Sep 06, 07 - 03:45 pm Comment from: unfettered

That should dampen the mass reaction of "I won't be shopping at Apple again anytime soon." Or, "I won't be buying iLife '08 / iWork '08 / OS X 10.5 Leopard" etc...

Sep 06, 07 - 03:45 pm Comment from: Synthmeister

Wow. Just wow! The free publicity alone will pay for this move.

My goodness, Apple has been feeding off this iPhone frenzy since January and now it's gonna sustain them for the rest of the year!

We are not worthy!

And all MS can do is offer a measly $50 rebate on the Zune? Now MS not only looks retarded but stingy as well. Maybe MS should start giving Zunes away to the victims of Hurricance Katrina or global warming or trans fat or something.

Sep 06, 07 - 03:46 pm Comment from: Stockboy

Stock has dropped about $2.00 since this announcement...I lost more in stock price than this rebate....
Thanks!.....

Steve - where is the make up for the stock price drop????

Boo,hoo,hoo....

Sep 06, 07 - 03:46 pm Comment from: ChrissyOne

Store credit = come in to the store to spend it.

Steve, you magnificent son of a bitch.

Sep 06, 07 - 03:46 pm Comment from: macbookmad

now folks are more likely to buy Leopard than "borrow" it

Sep 06, 07 - 03:48 pm Comment from: sfsteve

I'm glad that happened so quickly. I was getting tired of hearing so much whining! Now that you have a $100 store credit, you will go into the Apple store and spend that $100 and so much more. Smooth move on the part of Apple. Give back a little, gain a lot more in good will, in-store traffic, good pr!

MW=nation
Who in this nation won't want an iPhone now?

Sep 06, 07 - 03:48 pm Comment from: macbookmad

If people buy Leopard who wouldn't have done so otherwise,the credit is less to the bottom line than it actually appears.

Wall Street has it all wrong. The stock has lost over 1 Billion since the announcement but all they did was give a few million back to their most loyal customers and get another day's worth of publicity tomorrow. Brilliant.

Sep 06, 07 - 03:49 pm Comment from: r8rn8tn78

w00t

New nano or Apple bluetooth headset???
This is why i am a "fanboy"... what other company takes care of its customers like that!!
I would wait in line 15+ hours all over again!!! wink
Thanks Steve

Sep 06, 07 - 03:49 pm Comment from: yet another steve via iPodDailyNews

What is truly awesome is how this is all running on internet time. And it shows leadership in that a decision was made quickly. Boom

Sep 06, 07 - 03:50 pm Comment from: Too Much, But Nice PR

I bought an iPhone day 1. And never felt that a rebat was necessary. I bought the item at a price I felt was reasonable for what I was getting when I was getting it. I had decided on purchasing the iPhone immediately after walking out of the Keynote in January.

That said this is a good public relations move for Apple and for their base. It does create a certain sense of entitlement though and that may bite Apple in the future.

I guess you can't please everyone. I am sure there are people that will complain that it is ONLY a store credit.

MDN Word - Likely as in It's "likely" there is an iPod Nano in my wife's future. Or maybe I'll buy her the touch and take back my old iPod 5G, so I can use it can have it as a backup and for file storage.

Hmmmm decisions, decisions.

Sep 06, 07 - 03:50 pm Comment from: MikeK

Despite all my bitching and complaining, I feel very satisified with this.


Thank you Apple, Thank you Steve. You have restored my confidence in you!

Mike

Sep 06, 07 - 03:50 pm Comment from: notatotalsucker

>> Maybe MS should start giving Zunes away to the victims of Hurricance Katrina

What? And make their suffering even worse? wink

This is a good move by Apple, and thank-you.

Sep 06, 07 - 03:50 pm Comment from: Scopi

Phew! I was afraid that Apple might not find a way to stay in the headlines for the next couple days.

Sep 06, 07 - 03:50 pm Comment from: An Optimist

Wall Street won't appreciate this due to the impact on short-term revenue, but it is a brilliant move by Apple. It will build loyalty with new customers, and give consumers who are contemplating the purchase of Apple products greater confidence in the brand. The long-term benefits to Apple will be worthwhile.

Sep 06, 07 - 03:51 pm Comment from: No Squirt For You

C1, ditto and well put. Classy move. I'll stop mocking your turtleneck now, Steve.

Leopard will cost me $29 + tax.

Sep 06, 07 - 03:52 pm Comment from: Ashton

Boy, did Apple handle this badly! Glad they did the right thing by their most loyal customers (which they really didn't have to), but they had to know before yesterday the tsunami of negative reaction would be coming.

Sep 06, 07 - 03:52 pm Comment from: iPunch

smart

Sep 06, 07 - 03:53 pm Comment from: critic

I'm going to write and complain if I can't apply the $100 to the cost of the iMac I bought 2 weeks ago!! Kidding.

Actually, I may take the credit along with the coupon from the iPod class action settlement that will expire soon and go buy myself an Apple TV.

Sep 06, 07 - 03:53 pm Comment from: Loru

Thanks you apple....we can go back to making out now....
slobber slobber grope slobber slobber

Sep 06, 07 - 03:54 pm Comment from: Angelus520

Ha! More free marketing for Apple and the iPhone. Everyone had stories this morning about the iPhone price cut and whether it was fair or not. Now, everyone will have more stories later today and tomorrow about the $100 store credit.

Slick move grin

Sep 06, 07 - 03:55 pm Comment from: Oops

Geez, but SJ is a friggin' genius. I'd bet my lost dollar that he had this all typed up before yesterday's announcement. What a ringmaster.

Sep 06, 07 - 03:56 pm Comment from: The Velvet Hammer

Steve: "TVH... we cool?"
TVH: "Yeah Steve, we cool."

I have to admit... I was pretty pissed. But honestly, would any other company do this? I don't think so.

Steve met the iPhone users in the middle... and that's good enough for me.

Sep 06, 07 - 03:58 pm Comment from: Spark

Steve gives me a hundred and I'll go into an Apple Store and end up spending a thousand. Smooth move, Steve.

For me, the money wasn't the issue. What hurt was that Apple's move made their most fervent supports open to ridicule: "Idiots" "Sheep" "Ha Ha, you paid $200 more...boy are you stupid." The $100 gift is a cooling balm to my reddened and embarrassed fanboy face.

Reader feedback page 1 of 5 pages:  1 2 3 >  Last »

Always -- Free ground shipping with orders over $50 at the Apple Store.

Add Your Feedback:

Register or Login

Name:

Email: (optional)

Emoticons | Allowed HTML Tags

Remember my personal information   Notify me of follow-up comments?

Please enter the "MDN Magic Word" you see in the image below:








Current MacDailyNews Stories:

And they wanted to block Safari: PayPal’s EV SSL page and its vaunted green URL vulnerable to attack
Saturday, May 17, 2008 - 09:49 AM EDT
Apple’s massive iPhone 2.0 rollout: 42 countries, 575 million potential customers - and counting
Friday, May 16, 2008 - 05:45 PM EDT
RIM co-CEO Lazaridis: BlackBerry Bold three years in the making, design not mimicking Apple iPhone
Friday, May 16, 2008 - 04:19 PM EDT
Windows to Mac switcher dispels myths
Friday, May 16, 2008 - 01:33 PM EDT
Report: Apple iPhone in Canada coming in June with Rogers’ $7 per month data plan
Friday, May 16, 2008 - 12:54 PM EDT
Thurrott: Long lines at Apple Store Grand Openings make me uneasy
Friday, May 16, 2008 - 11:12 AM EDT
Along with Red Sox players, crowds storm grand opening of Boston’s new Apple Store
Friday, May 16, 2008 - 10:12 AM EDT
Report: Taiwan flat-panel makers get orders for new Apple MacBook due Q308
Friday, May 16, 2008 - 09:51 AM EDT
Apple wins two coveted Black Pencils in 2008 D&AD design awards (now has most of any company)
Friday, May 16, 2008 - 09:38 AM EDT
Report: Apple to please missile makers with long-term support of PA Semi’s existing PowerPC chips
Friday, May 16, 2008 - 09:18 AM EDT
Google releases App Engine Launcher for Mac OS X
Friday, May 16, 2008 - 08:57 AM EDT
Orange to bring Apple iPhone to Europe, Middle East, Caribbean and Africa
Friday, May 16, 2008 - 08:38 AM EDT
Microsoft: Windows Mobile will grab 40% market share in 2012
Thursday, May 15, 2008 - 04:49 PM EDT
Lines form ahead of Apple Store Boylston Street grand opening
Thursday, May 15, 2008 - 04:10 PM EDT
Apple patent application details iPhone server
Thursday, May 15, 2008 - 03:38 PM EDT
Feral Interactive to ship Eidos’ Battlestations: Midway for Mac on June 27th
Thursday, May 15, 2008 - 02:44 PM EDT
What’s coming from Apple at WWDC?
Thursday, May 15, 2008 - 02:19 PM EDT
Report: Cox also guilty of blocking BitTorrent traffic
Thursday, May 15, 2008 - 01:45 PM EDT
Intel disavows Atom-powered Apple tablet comment
Thursday, May 15, 2008 - 01:06 PM EDT
Air New Zealand turns airliners into authorized Apple iPod accessories
Thursday, May 15, 2008 - 12:49 PM EDT