Peter VanRysdam / Marketing / September 5th, 2007

How Upset Are Apple Fans?

Let’s say for arguement’s sake I stood out in the heat all afternoon and then through the night just to get my hands on the iphone when it came out.  I shelled out the $599 plus tax to get the phone first.  I didn’t do that, but let’s just say I did.  Well I’d be super pissed today if that were the case.

Today apple dropped the price of the phone from $599 to $399.  It’s one thing to cut prices a year later, as Microsoft also did today with the Zune (down $50 to $199), but that was more a result of weak sales than anything else.  But that’s not the case with the iphone, which accounted for 1.8% of the mobile handset market in July.  Steve Jobs goal was to get 1% of the market.  Everything I’ve read indicates growing sales projections.  Seems an odd reason to drop the price. 

So why the big drop and why so early after its launch?  They certainly came under some fire for the price and lack of a discount for signing a phone contract, as is common with other smartphones.  It apparently wasn’t in an effort to raise the stock price, which fell 3.5% today after the announcement (after a 13.5% rise leading up to the press conference). Looks like Wall Street was disappointed with what it heard.

Maybe it’s fear of the sasquatch-like Google phone.  Does it really exist?

In another odd move in my opinion, Apple also introduced a new ipod today with a touch screen that can browse the web wirelessly.  Pardon me for asking, but isn’t that the iphone?  No, I guess this is just the iphone for people who don’t have other people to talk to.  At $299, it just seems like an odd stepchild of the iphone. 

Just my two cents.  Gotta go…I’m getting a call on my Treo.