Apple, CEO Jobs, AT&T sued over iPhone price cut, rebate

“Apple Inc., along with its chief executive and exclusive U.S. iPhone wireless partner AT&T, have been hit with a new lawsuit from a disgruntled customer who charges the trio with a variety of offenses stemming from the recent iPhone price cut,” Kasper Jade reports for AppleInsider.

“In the suit, filed Sept. 24 in the United States District Court for the Eastern District of New York, Queens resident Dongmei Li accuses the parties of price discrimination, underselling, discrimination in rebates, deceptive actions, and other wrongdoings for their role in the Sept. 5th price drop on iPhone, which saw the handset’s price tag slashed an unprecedented $200 less than two months after its debut,” Jade reports.

“She, like thousands of others, the suit claims, is now the victim of price discrimination in that she cannot resell her iPhone for the same profit as customers who purchased the device after price drop. Similarly, she cannot trade up to 8GB model she had initially hoped to obtain and is now left with a product that has been discontinued,” Jade reports. “Li also feels cheated by Apple’s rebate policy because she was only offered a $100 store credit towards a future Apple store purchase when those customers who bought the same iPhone within a two week window period immediately preceding the cut received the full $200 refund under the company’s price protection policy.”

“‘Market conditions did not require Apple to change its price,'” Li’s attorney, C. Jean Wang of Wang Law Offices, PLLC wrote in the filing. ‘iPhone was selling very well because Apple’s stocks were increasing since August 16, 2007 and rose as high as $144.16 on September 4, 2007, the day before Apple announced that it was cutting the price of iPhone,'” Jade reports. “Li is requesting compensatory damages in the amount of $1 million, punitive damages in the amount to be determined at trial, and a court order that she is entitled to ‘threefold her damages, the costs involved in maintaining this action, and attorney’s fees.'”

Full article here.

[Thanks to MacDailyNews Reader “Gman” for the heads up.]

We want a 73-foot tall talking pink bunny, but that doesn’t mean we’re going to get that, either. However, the chance we’ll get our wish significantly outweighs Li’s, since her attorney seems to think that stock price performance has some meaningful relationship to iPhone unit sales. Apple’s lawyers likely got a good laugh over this one before heading home for the weekend.

Did somebody say “tort reform?”


  1. If the store credit was so bad that a lawsuit is called for, everyone participating th the suit should forfeit theirs and take their chances with the lawyers.
    The lawyers, BTW, will clean up, while the whiners *might* end up with a $10.00 gift card.
    Go ahead, make my day

  2. How do you get $1 million based on a price difference of (at most) $200? Emotional distress?

    She was apparently OK with paying $499 for a 4GB model when she bought it. If Apple did not lower the price, she would continue to be OK with that price on September 5th. But Apple lowered the price, so she is actually up a $100 credit at the Apple Store; she’s not out $200 because that’s money already spent.

    Crazy people…

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