Decaflon Thread: In a World of Free Stuff on the Web, then there's Apple

In a World of Free Stuff on the Web, then there's Apple

clicknathan — Fri, 07 Sep 2007 17:26:29

@Tyme & Scrivs: I'm assuming you guys work in the same office. Maybe that's an incorrect assumption, but if you do, is there some sort of inter-office rule:

"No discussing notes outside of the notespace."

Certainly not that I'm saying you shouldn't be doing it here, I just think it'd be hilarious if you're both peaking over the other's shoulders "Did he reply yet?" "She'll never suspect this one!" "Ooh, that's it, he's getting artificial creamer in his soy latte!"

In a World of Free Stuff on the Web, then there's Apple

Article19 — Fri, 07 Sep 2007 15:39:33

it's a financial move and a PR move. The bad PR will be muted somewhat by the the store credit and not everybody will cash in (time, don't know about it, can't be bothered filling out a form or whatever).

they could have saved themselves a lot of hassle and bad PR by just pricing the phone fairly to begin with. The product is fine (it's just a fancy phone but it's a well made fancy phone) they could have sold a lot more of them with a lower price point and people would have waited for it if stocks had run low.

Apple has a history of making good products and poor business decisions that p*ss a lot of people off. The iPhone is Aperture all over again and they don't appear to learn.

As for the ringtone thing. I watched the Apple presentation for the press and you are essentially paying $0.99 to edit the music track you already have.

Whether or not you have to buy into Apples way of making ringtones or use the free hack version a product as high tech as the iPhone shouldn't be making you jump through hoops so you can make it play a sound when your phone rings.

I also find it annoying that the "press" are applauding new product releases from Apple, what they should be doing is listening and asking pointed questions, but that's for another note I suppose.

In a World of Free Stuff on the Web, then there's Apple

PunkNoodles — Fri, 07 Sep 2007 07:44:43

Does anyone else see the $100 store credit as an incredible strategy by apple? Think about it. They cut the prices by $200, so you're only getting half your money back. Now they give you $100 store credit, meaning you have to spend that $100 on Apple products. How many Apple products are less than $100 dollars? Not many. (2? 3? not counting accessories) I'm sure there are plenty of iPhone owners out there who are now being more enticed to buy a new desktop, laptop, ipod (maybe the the new touch?) than they would have if they had not gotten a coupon for money off that next investment. It's a method to pull customers back into their store, and not just ordinary customers, but generally their most loyal and enthusiatic customers. Of course, that's just my opinion. It looks like a nice gesture until you consider how many new products they are going to sell because of it.

*Note: I'm not sure if anyone else has already mentioned this. There are so many Apple threads on here lately that I may have missed it.

In a World of Free Stuff on the Web, then there's Apple

Ozone42 — Fri, 07 Sep 2007 05:47:12

Apple could sell their computers and ipods at $1 profit if they wanted to. Technically nothing is "over priced" unless people simply aren't buying it.

Lower sales than projected is a great reason to lower price as long as you have the margin to do so, but only to a point. If you cut to far, you start cutting corners to compete which no one is succesfull at for long.

I'm not sure Apple had to do this. Of course they didn't do it out of any ethical sense or as a give away, just to further fuel their engine. Being the #1 selling smartphone in July doesn't sound like they're in a bad position--even if sales were under what they wanted. Their marketing guys are way better than I am at this game though, so I tend to think they always have something else up their sleeve.

To me, it makes a lot morse sense that the price drop was specifically to keep their sales of iphone high after releasing the iPod Touch. The products are so similar that if the price difference was still so extreme, the new iPod would totally cannibalize the iPhone sales. Most iPhone buyers want the cool gadgets and features of the iPod Touch. The phone abilities ARE quite nice on their own, but I'm betting your typical gadget geek would opt for the iPod Touch and a cheap phone over an iPhone if the price had remained the same.

In a World of Free Stuff on the Web, then there's Apple

Tyme — Fri, 07 Sep 2007 05:36:39

Absolutely not but to continue when one knows it is over-priced does raise ethical questions. Some companies voluntarily lower the price. Obviously, Apple opted not to do it but ended up having to do it in the end, costing them more money than if they did it in the first place.

In a World of Free Stuff on the Web, then there's Apple

Scrivs — Fri, 07 Sep 2007 05:31:28

It's naive to think something that is manufactured doesn't have months in advance planning.

Not naive to think pricing of goods and demand changes and therefore alters those months of planning.

In a World of Free Stuff on the Web, then there's Apple

Tyme — Fri, 07 Sep 2007 05:26:42

Yes it was set in January and how much in advance did they know about the new iPod? How much in advance did they know the price will go down? It doesn't change the fact they knew and they could have reduced the price before launch. It's been done before.

And if you read his response he said, "that's technology". It's naive to think something that is manufactured doesn't have months in advance planning. Tis all.

In a World of Free Stuff on the Web, then there's Apple

Scrivs — Fri, 07 Sep 2007 05:15:33

What you're saying is that they knew the demand would be high and played on the loyalty of their customers.

The price was set in January if I recall, so technically the price change came over 9 months later. It's not known "hey we are going to make the exact same type of iPod so we know what type of future deals we can get to negotiate a new price on parts". Everyone seems to forget that these things were basically ready at the beginning of the year, but they had to wait for FCC approval. This was their first entry in a brand new market. It's volatile and they are reacting accordingly. If this was the music player or computer market I can see everyone going crazy, but again this was a first trial type of thing.

They weren't playing off the loyalty of anyone. You knew the price in January and if you bought one you decided back then you were willing to pay that price. I have no problem changing the price this quickly after launch considering how long we've known about the iPhone. Your point was that they knew everything in the future and I'm saying I'm not so sure they did. If one of us worked at Apple or slept with Steve Jobs then we would know how evil/naive he was in this situation.

In a World of Free Stuff on the Web, then there's Apple

clicknathan — Fri, 07 Sep 2007 04:23:15

Agreed and touche.

In a World of Free Stuff on the Web, then there's Apple

Tyme — Fri, 07 Sep 2007 04:14:02

Naw not upset at all. I came at you like you came at us. No harm done. :)

In a World of Free Stuff on the Web, then there's Apple

clicknathan — Fri, 07 Sep 2007 04:08:31

Okay, I guess you're right, Tyme. I was questioning Apple's business practices, albeit specifically towards one feature. I'm completely cool with the fact that things get off topic, that's how most real world conversations go, and I in fact relish that.

Sorry if my response to how things seem, from my perspective, to be going around here upset you in some personal way and good job deleting all of those notes. I'm sure the people who posted them are all McDonald's slogans over that.

In a World of Free Stuff on the Web, then there's Apple

Tyme — Fri, 07 Sep 2007 03:35:32

@clicknathan: Let me clarify what this topic is about: ethics and business practices of Apple...because that is how you started the conversation.

Shame on Apple for charging us extra for what should have been an inherent feature from the beginning. Shame on them for "selling" us these phones and then not letting us customize them how we want to. And shame on them for hiding behind the guise of what AT&T or Big Music will "allow" them to do, simply so we can continue to pretend like they're a "really cool company."

It's dead on topic. Now if you wanted to talk about ring tones then perhaps you should have made a post in the Music community and talked about ring tones.

That's not what you did. You complained about Apple's business strategy. Which lead to a discussion (which is on point) allegedly making the same mistake with the iPhone/iPod.

And for the record there were a lot of topics made that aren't showing up on the Apple situation because we deleted them. They started off being separate issues with Apple but they ended up (because of their announcement yesterday) blending together under...

wait for it...

Business strategy/planning/ethics, etc. It happens in a community.

@rjc29: Here's the problem that people had (I am not one of those people because I did not buy the phone):

4. Product flies off shelves
5. Time Passes

Time ended up being 8 weeks and 1/3 off. People knew the phone would decrease in value but not in 2 mos and not for 1/3 off. It's understandable they are upset. I think the 100 credit is a good solution but it doesn't change the fact it could have been avoided. The profits they made were bitten into dearly with the credit, the extra employee compensation, the frustration of their users, the drop in stock price, etc.

In a World of Free Stuff on the Web, then there's Apple

rjc29 — Fri, 07 Sep 2007 03:29:42

Edit: Sorry this is a little off-topic from the ringtones. The "ethics" talk drives me nuts.

Business:

1. Create a product people will want.
2. Create major buzz about said product.
3. Sell it at the highest price point you can where customers still feel they're getting value.
4. Product flies off shelves
5. Time Passes
6. Sales Slow
7. LOWER PRICE
8. Sales pick back up again
9. Time Passes
10. Release new version of product

Lather, Rinse, Repeat. Welcome to commerce people. I'm sorry if making $150 million because demand is high enough is now unethical but that's the way shit works.

In a World of Free Stuff on the Web, then there's Apple

clicknathan — Fri, 07 Sep 2007 02:54:36

Apple has to pay the labels and artists even for ringtone sells so there really isn't an option to give them away for free or else every song in the iTunes store would have that capability.

I can't be sure on whether Apple would need to pay royalties to labels and artists for ringtones, but you can't buy a ringtone for $.99 - you first have to buy the song or use one you already own (can you even use a song that you got from outside of the Apple store?)

So you're paying for the royalties of a song twice.

As for being an early adopter and the price drop, well that's not really the issue at hand. I assume that's the reason for multiple iPhone/iPod posts on this site: different topics for each. What is the point of allowing multiple notes if people aren't allowed to bring up different points about the same subject?

For example, this note is about Ringtones. It's not about whether or not you want an iPod Touch or an Nano. It's not about organizational features of the iPhone or even that the iPhone has dropped in price. If there should only be one thread about iPods/iPhones where every single aspect of those subjects must be discussed, then perhaps that should be made clear. I realize that this post in itself gets off subject, but I'm slightly weirded out about making it into its own note for what the comment repercussion might spawn.

I don't really see the issue with having lots of notes about the same subject, anyway. A lot of people on this site like Apple products. Apparently a lot of people like to talk about movies and photography and dead fat singers and WordPress, many of which are topics I don't care about, but having a plethora of things to discuss has always been a primary reason for visiting this site.

Sorry if that's all a bit forward, it just seems that there are a lot of pseudo-restrictions popping up here, unwritten rules type stuff that either needs to be made clear or else should be let slide.

In a World of Free Stuff on the Web, then there's Apple

Rich — Fri, 07 Sep 2007 02:38:01

Scrivs just got Tyme'd!

In a World of Free Stuff on the Web, then there's Apple

Tyme — Fri, 07 Sep 2007 02:36:04

Yes 1M phones in a month is nice but it's not enough to compete in the market, hence the price drop. Remember even with the price drop they are making a nice profit on the phone.

It was expected to be the #1 selling phone, especially with the issue of 3G phones not being able to be produced (not sure what happened as an end result with that). It's Sept. holiday shopping hasn't begun to come up yet.

They dropped the price to increase sales. It's the only reason why a company does it. That doesn't take away from the fact that:

1) They knew the new iPods were coming out.
2) They knew the new iPod was going to use the same parts.
3) Buying in bulk like that for the iPod would mean a reduction in expenses, meaning the cell phone would be cheaper.
4) 1+2+3=Apple being able to sell the phone for less than $600. They knew it was over-valued.

What you're saying is that they knew the demand would be high and played on the loyalty of their customers. Thanks for helping me prove my argument Scrivs. :)

In a World of Free Stuff on the Web, then there's Apple

Rich — Fri, 07 Sep 2007 02:32:27

If you paid for it, you don't have a leg to stand on if you're arguing that it was overvalued. You bought the damn thing; it can't have been that much overvalued.

Not at anyone in particular, just sayin'.

In a World of Free Stuff on the Web, then there's Apple

Dale — Fri, 07 Sep 2007 02:30:45

i do not see the big deal in this case. i can not offer any fancy logic. but if you did not think it was worth what ya paid for it then why did you buy it?

DALE

In a World of Free Stuff on the Web, then there's Apple

Scrivs — Fri, 07 Sep 2007 02:24:01

All of this is not to say that Apple was happy with how many they are pushing out, but holiday season means price cuts all over the tech sector.

In a World of Free Stuff on the Web, then there's Apple

Scrivs — Fri, 07 Sep 2007 02:21:15

And it was the #1 selling smartphone in July AT the original price so saying it was overvalued for its price only applies to the people who never bought one.

In a World of Free Stuff on the Web, then there's Apple

Scrivs — Fri, 07 Sep 2007 02:19:46

The only reason the price is dropping is because sales did not meet their goals. Companies do not drop prices for fits and giggles. If the iPhone had a true worth of $600 then there would not be a price drop. The phone was overvalued.

Sorry I'm not so sure about this one. They are going to sell their millionth iPhone by the end of the month so that makes 1 million sold in 3 months which is astonishing to me. The fact is the demand was so high they knew they could milk $150M out of people and struggle to keep up with demand, but now that they have corrected the bugs and I'm sure go the supply up to par they are getting aggressive for the holiday season. The fact that the iPod Touch is almost identical and uses the same parts means that they get a great discount on production and therefore can lower the price all they want.

As for the ringtones debate, you have an option to pay for it or not so I'm not sure why people are getting upset about this one. Sure you can do it for free by configuring everything on your own, but I know a ton of people that would love to pay $0.99 just to do it quickly and make it exactly how they want. I think what some of you are forgetting is that Apple has to pay the labels and artists even for ringtone sells so there really isn't an option to give them away for free or else every song in the iTunes store would have that capability.

In a World of Free Stuff on the Web, then there's Apple

Tyme — Fri, 07 Sep 2007 02:19:35

Phew...that's a relief. I love my Ryan. :)

Wow, Apple's stock dropped more today. Perhaps the credit announcement came too late in the day for it to rebound.

In a World of Free Stuff on the Web, then there's Apple

ryanarrowsmith — Fri, 07 Sep 2007 02:05:35

You know I love my Tyme, even if she uses a PC. :)

In a World of Free Stuff on the Web, then there's Apple

Tyme — Fri, 07 Sep 2007 01:59:00

*Tyme wishes there was a merge discussion button because I feel like I'm repeating myself...all these Apple notes...*

Ok let's play devil's advocate here a second. The only reason the price is dropping is because sales did not meet their goals. Companies do not drop prices for fits and giggles. If the iPhone had a true worth of $600 then there would not be a price drop. The phone was overvalued.

That doesn't mean the people who paid (like Ryan.who.better.not.kill.me) doesn't feel he got value from the phone. It means, based on consumers, the price was off - $200 off - 1/3 off. That's a big costly mistake. See, it's not only the money difference that is an issue. It's great the credit is being issued (or whatever it is) but it's only because all hell broke loose and for many even with the refund the trust is broken. If they could have gotten away with it they would have. It's very Microsoftish and I hate to see Apple go down that path. I guess I felt Apple was better than that.

And I'm not hating - I'm looking at it from a business standpoint. Ethically it is not a move I would have felt comfortable doing but the guys will tell you I probably drive them nuts with my ethics.

In a World of Free Stuff on the Web, then there's Apple

ryanarrowsmith — Fri, 07 Sep 2007 01:54:51

jesus h. christ, really took an intelligence dump around here.

giving the money back (or store credit) proves the point, bad PR from hiking the price artificially for new adopters.

get a damn clue!

I find people resort to obscenities when they run out of logical points for the debate.

I don't think we're the ones without a clue. I think you're unhappy with Apple either way, given the history of your comments, so it's more about a personal situation than about a company's actions.

Even if this is a PR stunt to negate the response to the price drop, isn't that exactly what you wanted? The consumer to hold them responsible.

I'm just at a loss with your retorts because you constantly contradict yourself.

In a World of Free Stuff on the Web, then there's Apple

Dale — Fri, 07 Sep 2007 01:51:33

sorry. i can't seem to do much right today.

In a World of Free Stuff on the Web, then there's Apple

Scrivs — Fri, 07 Sep 2007 01:49:08

Dale, this is the last time I will respond to you about your posting habits (since we have done so numerous times over PM already). I do not delete things for you to repost them or link them again. Everyone else, I apologize this topic got derailed. If you can not understand how this community works and the discussions that take place here, you might want to read around a bit before posting anymore.

In a World of Free Stuff on the Web, then there's Apple

RightOn — Fri, 07 Sep 2007 01:48:59

We all can't be geniuses like you Article19... sorry we stepped out of line.

In a World of Free Stuff on the Web, then there's Apple

Dale — Fri, 07 Sep 2007 01:47:57

jesus h. christ, really took an intelligence dump around here.

theres no need to get blastfomus. he probably just made a mistake when he deleted it.

DALE

In a World of Free Stuff on the Web, then there's Apple

Dale — Fri, 07 Sep 2007 01:44:17

No I did

do ya want me to link it again then?

DALE

In a World of Free Stuff on the Web, then there's Apple

Article19 — Fri, 07 Sep 2007 01:43:55

jesus h. christ, really took an intelligence dump around here.

giving the money back (or store credit) proves the point, bad PR from hiking the price artificially for new adopters.

get a damn clue!

In a World of Free Stuff on the Web, then there's Apple

Scrivs — Fri, 07 Sep 2007 01:41:35

No I did. Please stay on topic from now on and if someone has a problem with any other member bring it up to me without asking if they are retarded. That will not be tolerated. And as I kindly asked you in a PM please stop "signing" your notes with Dale, we know who is posting.

In a World of Free Stuff on the Web, then there's Apple

Dale — Fri, 07 Sep 2007 01:38:50

damn. did I delete my tree photo?

DALE

In a World of Free Stuff on the Web, then there's Apple

Dale — Fri, 07 Sep 2007 01:37:08

so I'm confused

Wow

just kidden y'all with the tree. it was a dead poplar and it got hung up good when i cut it. i made a photo before jim got the atv on it.

DALE

In a World of Free Stuff on the Web, then there's Apple

RightOn — Fri, 07 Sep 2007 01:12:15

no...... words.....

In a World of Free Stuff on the Web, then there's Apple

Dale — Fri, 07 Sep 2007 01:09:03

to quote righton from another thread:

HOLY CRAP.... seriously.

Do we REALLY have nothing better to do?

y'all sure like to talk about Apples alot! i guess it is like me and my saws.

In a World of Free Stuff on the Web, then there's Apple

RightOn — Fri, 07 Sep 2007 01:08:23

No, try gloating because they did something generous because they're supposedly evil for "gouging" their customers when they were forced to buy the iPhone for $600.

In a World of Free Stuff on the Web, then there's Apple

ryanarrowsmith — Fri, 07 Sep 2007 01:07:36

Yeah, Article19...you seriously need to pick a point of view and stick with it. You've been calling Apple unethical. Well, they just did something to take care of their customers and that seems to meet your standards either.

In a World of Free Stuff on the Web, then there's Apple

Ozone42 — Fri, 07 Sep 2007 01:03:12

So, now are you bitching about Apple doing something nice? I bought an iMac a couple years ago, now I can get 4 times the machine for the same price... do I get a refund? I think this is silly. Yeah a big price drop that quickly hurts more than usual, and I'd be ticked too. I wouldn't think Apple owed me anything though. I've been there before with other companies. It's the technology world.

In a World of Free Stuff on the Web, then there's Apple

Article19 — Fri, 07 Sep 2007 00:34:31

Feeling guilty Steve?

In a World of Free Stuff on the Web, then there's Apple

peroty — Thu, 06 Sep 2007 22:09:34

You mean... people pay for ringtones...?
And don't just use bitpim to edit a short clip of an MP3?

Weird...

In a World of Free Stuff on the Web, then there's Apple

ryanarrowsmith — Thu, 06 Sep 2007 21:05:24

So you were getting strong... ;)

In a World of Free Stuff on the Web, then there's Apple

clicknathan — Thu, 06 Sep 2007 20:54:54

Sorry, I've been working out. All fixed.

In a World of Free Stuff on the Web, then there's Apple

ryanarrowsmith — Thu, 06 Sep 2007 20:51:18

Someone forgot to close his strong! :)

In a World of Free Stuff on the Web, then there's Apple

clicknathan — Thu, 06 Sep 2007 20:41:55

Ethics, flaming, and RightOn's political status aside...

What's your beef? I've been a Cingular customer for years and I can tell you, $0.99 for a ringtone is WELCOME... I recall paying $1.99 for a ringtone from Cingular.

No offense, seriously RightOn, but I can't see how paying $1.99 for a ringtone is anywhere reasonable when an entire song is $.99. Not to mention that you're not paying $.99 for the ringtone, you're paying $1.98 because you have to first buy the song, then pay to have it turned into a ringtone. Ask yourself this:

Is a ringtone worth more than an entire song? Is it worth as much? It is definitely less of a product.
When a device can already play music, why is that device purposely made to not allow that music to be played in different ways?
Why would a device be restricted from purchasing downloads through AT&T's other ringtone outlets, there are many of them, some are free, others are through AT&T themselves and cost $$. None are available to iPhone users.

It is a proven fact that you CAN take music you already own and make it into a ringtone FREE OF CHARGE and install it on your iPhone.

But this also likely violates your terms of service, eh? And while it may be possible, I'm a little wary of hacking a $600 just so I can hear Snoop Dogg playing while my mom calls to check if I've been getting enough protein.

When it does come to ethics, I think that corporations are free to pick and choose what "Beliefs" they have or not. And lets face it, any corporation that is making big cash and has investors probably has a primary belief, which is to make money, and that's an ethical responsibility to the investor. Ethics, however, has nothing to do with this conversation, in my opinion, but simply that it just doesn't make sense to limit this device in so many ways.

It's billed as a small computer, they're saying it's running OS X, but show me a computer that you can't install software on, show me an OS at all that doesn't allow you to manage your own files and manipulate as you'd like.

In a World of Free Stuff on the Web, then there's Apple

Ozone42 — Thu, 06 Sep 2007 20:29:18

of course you don't believe that corporations have ethical responsibilities toward their customers, you're a republican, that's par for the course.

Corporations have an ethical responsibility to deliver what they say they are going to deliver, for the price they say they're going to deliver it. That can change at any time. No one is tricked into this, or forced to buy a product. You can't quantify a company's ethics when all it's products are luxury items and everyone is free to buy or not buy what they judge is worth the asking cost. It's perfectly just already.

they knew months in advance that they would drop the price of the iphone. they knew months in advance that they were going to pull this crap with the ringtones.

While this may be likely, you have absolutely no idea if it's true or not, nor do I. Apple is one of the most agile technology companies around today, as evidenced by their rapid growth and success in recent years, along with the speed they're putting out new and revised products. They could have decided on the price drop last week... Easily and realistically. They probably didn't, but unless you're on the payroll in upper management, you've got absolutely no clue.

In a World of Free Stuff on the Web, then there's Apple

ryanarrowsmith — Thu, 06 Sep 2007 20:09:38

I guess we're not seeing eye to eye. I don't see this as an ethical situation. It was a business decision that Apple made to guarantee the brand's continued success. It's not like anyone was forced to buy a product. We're all responsible for our choices and how we spend our money, no one else is.

Apple has every right to do business how they see fit. Like I said, if you don't agree with them, don't support the company. It's as simple as that. But going around and implying that changing a product line or price point is unethical is just absurd! If we applied your logic to all corporations, we'd be hard-pressed to find one you'd deem ethical.

Wal-Mart cuts their prices on perishable items as the expiration dates approach. Should they hunt down every person who bought the same item earlier and offer a refund on the difference? I bought a car earlier this year that now, because of the year model change, is cheaper. Should I go back to the dealer and demand my money back? I bought a polo at Banana Republic in May that's now on end-of-season clearance. Should I go back and demand a refund, even though I know they offer a 30-day price guarantee (as a note: Apple offers a 14 day guarantee).

All of these companies knew they'd eventually have to adjust their price to move their merchandise so, by your definition, they are unethical.

And I didn't get ripped off, that's a pretty silly assumption. That implies that, for one reason or another, I didn't fully consent to the price I paid for my phone. Obviously I did. I knew it was $599 and, in all likelihood, it would be cheaper at a later date. I still made the decision and paid the asking price. I'd do it again in a heartbeat. I love this little phone - it's one of the best investments I've ever made.

In a World of Free Stuff on the Web, then there's Apple

Article19 — Thu, 06 Sep 2007 19:48:47

good grief, it's not a conspiracy theory, it's commerce, $150million makes sense if they can get away with it. It's how oil companies get away with high fuel prices even though fuel is in huge demand.

"Who are we to dictate what they should do to continue to thrive?"

you're their customer, that's who you are. not questioning the ethics or the behaviour of companies (makers or cute phones, ipods cars or whatever) or anything else is how things end up in a mess, it's how you just got ripped off for $200.

Apple tried the same trick with Aperture. Sold it at $299 then dropped the price to $199 and gave everybody a $100 store credit. Why? because they didn't think they would get away with it (to say nothing of the competition from Lightroom). Users were mostly pro photographers who would have raised hell, but your average consumer shrugs their shoulders and moves on.

As you have illustrated!

In a World of Free Stuff on the Web, then there's Apple

ryanarrowsmith — Thu, 06 Sep 2007 19:37:45

As an early iPhone adopter, I'm obviously not happy about the $200 price drop. Am I ready to start talking conspiracy theory? No. I think that's a little paranoid.

I think that, because Apple is getting a lot of buzz lately, people fault find more than they should. Dropping the price of a new gadget isn't an Apple specific strategy. It's a response to the market. Just like when Microsoft lowered the price of the X-Box and X=Box 360, then Sony with the entire PS line. (PS3 anyone?) If you want to talk cellular, look at the Sidekick or the Treo line.

Do I think the iPhone was priced too high? Obviously not, I bought one. But obviously Apple had to re-evaluate their own business strategy and do what they thought was best. Who are we to dictate what they should do to continue to thrive?

The choice is simple: support them or don't. But they are a company based in the retail of electronic gadgets. They are not a public service company. Their entire purpose is to make money, so don't fault them when they are successful at it.

And about the ringtones: what's the big deal? I came from Sprint. I had to pay up to $2.99 for a ring tone, no matter if it was a song I already owned. Now, I can buy a song I want for $.99, make it a ring tone for another $.99 and then keep the song forever. To me, that's a much better deal.

But that's not mandatory. I use iFuntastic already, which allows me to set my own music as ringtones - no additional cost.

In a World of Free Stuff on the Web, then there's Apple

RightOn — Thu, 06 Sep 2007 19:36:05

you're a republican, that's par for the course.

Do I NEED to scan my voter ID to show you that I am NOT a republican?

GEEZ I left that party YEARS ago. How many times do I need to say this. Just because I have conservative beliefs does NOT mean I am a Republican.

you're basically saying that Apple kept the price high to keep people away from the iphone, an absurd, contradictory argument.

Do you not understand supply/demand?

Lets say I have a widget business. Demand is SUPER high for my widget and I will be putting it on the market this Friday. I know that I have a limited supply of my widgets and an extremely high demand for them. If I price them too low, I will run out quickly and face the miserable wrath of the people who NEED one but cannot buy one and my profit will suffer. If I price them too high, no amount of demand in the world will sell them because people won't want to shell out enormous gobs of cash for them... thus a backlog in supply happens and I lose customers, again... my profit suffers.

There is ALWAYS a sweet spot for pricing that WILL curb off the impulsive buyers that don't really NEED what you're selling but WANT one. This is NEEDED in a free market system to balance out supply with demand. It's BASIC economics that you should learn in 5th grade!

There will always be people that will buy anything at any price but there are far more people out there that will stop and THINK before they buy... these are the people who will bleed you dry if you set your prices too low.

It's not surprising at all that they drop the price now... demand has leveled off and they have ample supply... if they kept it @ $599 sales would drop and *gasp* damage their profits on their product.