Apple slashes 8GB iPhone price to $399, 4GB model to fade

[AppleInsider]

Apple said Wednesday that it is on track to sell its one millionth iPhone before the end of September, and to make iPhone affordable for even more customers this holiday season, it is lowering the price of the most popular iPhone model with 8GB of storage from $599 to just $399.

"The surveys are in and iPhone customer satisfaction scores are higher than we've ever seen for any Apple product," said Apple chief executive Steve Jobs. "We've clearly got a breakthrough product and we want to make it affordable for even more customers as we enter this holiday season."

The 8GB iPhone is available immediately for $399 in the US through Apple's retail and online stores and AT&T retail stores.

The iPhone 4GB model will be sold while supplies last for $299, Apple said.

[ View this article at AppleInsider.com ]

[cwh812]

What do they mean that the 4GB is going to be sold while supplies last? Is that cheaper than $399? Who is going to buy a 4GB for $499 when they can get a 8GB for $399?

[onceuponamac]

It will be interesting to see the reaction to such a substantial drop in price shortly after the intro - good news for the next 1m buyers of the device - hopefully, this means they're clearing their inventory and introducing a 3g model

[macbear01]

Who is extremely pissed off to find out that he overpaid for the 8GB iPhone by $200 only 2 months after it was released?

That would be me! I want a f*ckin' $200 refund! Punish the early adopters. Gotta love that!

Did they have to do this to maintain interest because they haven't released ANY of the feature enhancements that were expected within a few weeks of launch? I'm a f*ckin' sucker!

[melgross]

cwh812, I'm sure they'll work something out. They aren't that stupid.

I just feel sorry for those who bought an iPhone within the past two weeks or so.

Those who bought them more recently might be able to return them, but I'm not sure.

This will blast open the market for sure though,

Two of the most desired features are now available for the iPhone: Buying songs, and a much lower price.

Manufacturers who planned on competing with a $599 product now have to deal with one that's only 60% of that cost.

I guarantee a lot of R&D has been wasted over the past 9 months.

[melgross]

Originally Posted by macbear01

Who is extremely pissed off to find out that he overpaid for the 8GB iPhone by $200 only 2 months after it was released?

That would be me! I want a f*ckin' $200 refund! Punish the early adopters. Gotta love that!

Did they have to do this to maintain interest because they haven't released ANY of the feature enhancements that were expected within a few weeks of launch? I'm a f*ckin' sucker!

You're not a sucker, but you are a whiner.

They just introduced the iTunes store to the iPhone. That's a feature many wanted.

That doesn't count as a feature update?

[cwh812]

I, for one, plan on returning the one I bought 2 weeks ago.

Price Drops happen, but not 40% after only 2 and a half months. Look at Sony and the PS3's. Their sales were not what they wanted, but they didn't smack their fan base in the face by have an almost immediate $200 price drop.

Not cool Apple.

[Akac]

I disgree. Its normal business to do price-correction and market correction. I don't think they had a price issue, but simply wanted to push things more heavily.

[SpamSandwich]

Originally Posted by melgross

cwh812, I'm sure they'll work something out. They aren't that stupid.

I just feel sorry for those who bought an iPhone within the past two weeks or so.

Those who bought them more recently might be able to return them, but I'm not sure.

This will blast open the market for sure though,

Two of the most desired features are now available for the iPhone: Buying songs, and a much lower price.

Manufacturers who planned on competing with a $599 product now have to deal with one that's only 60% of that cost.

I guarantee a lot of R&D has been wasted over the past 9 months.

I don't feel sorry. I've made numerous purchases late in the product cycle, only to have it rapidly obsoleted. The product cycle for cell phones is much shorter than in other markets.

[Denton]

Anyone else surprised that Apple didn't also release a 16GB iPhone (since they did for the iPod touch)? Awesome price-drop, though; and still not subsidised. It will be very hard for other manufacturers to compete.

Now, if only they'll release the thing to Canada!

[k2director]

Apple needs to give its early iPhone customers (8 gigs for $599) some kind of financial credit for their early support.

Dropping the price by $200 after only 2 months on the market makes the early customers look like they were gouged, and leaves a bad taste in the mouth of people who were Apple's most enthusiastic supporters. Also, who's going to want to buy future high-priced Apple products when they first hit the market, knowing that a move like this will happen?

If the iPhone is selling so well, then Apple can surely afford to reward the Apple faithful.

[GQB]

Originally Posted by macbear01

Who is extremely pissed off to find out that he overpaid for the 8GB iPhone by $200 only 2 months after it was released?

That would be me! I want a f*ckin' $200 refund! Punish the early adopters. Gotta love that!

Did they have to do this to maintain interest because they haven't released ANY of the feature enhancements that were expected within a few weeks of launch? I'm a f*ckin' sucker!

No, you got exactly what you paid for. A fine device (apparently exceptionally fine for a v1.0 product), and 2 months of "ain't I cool" bragging rights.

The real question is, why are you suprised?

[SpamSandwich]

What will be most interesting will be who hacks the Touch first to get Skype to run on it over Wi-Fi and retrofit a wireless phone earpiece.

[mjtomlin]

Originally Posted by macbear01

Who is extremely pissed off to find out that he overpaid for the 8GB iPhone by $200 only 2 months after it was released?

Wait a second! You "overpaid" for your iPhone? So you're saying you knew it wasn't a good deal when you bought it? I wouldn't call you a "sucker." ... Moron, idiot, loser; these words are more applicable.

[Denton]

Originally Posted by cwh812

I, for one, plan on returning the one I bought 2 weeks ago.

Price Drops happen, but not 40% after only 2 and a half months. Look at Sony and the PS3's. Their sales were not what they wanted, but they didn't smack their fan base in the face by have an almost immediate $200 price drop.

Not cool Apple.

The problem is that iPhone sales are just what Apple wanted. They are probably dropping the price because they sold so well in their first two+ months: now Apple can take advantage of built economy of scale. The higher prices were to cover their asses if they only sold 200K in the first two months.

[jkovach]

I am a recent Mac convert, and have a household with four iPods and an iPhone. I will never, EVER, buy another 1.0 product from Apple. To have my phone depreciate by $50 a week is ridiculous. F-you Apple.

[ifiredmyboss.com]

You always pay more to be first on the block.
If only they could have a different color so that I could still
say I was cool and got mine early.

Now "everyone" will have one.

16 gig $599 release before Thanksgiving???

I should have sold my 30 and 80 gig videos last week though.

[Denton]

Originally Posted by k2director

Apple needs to give its early iPhone customers (8 gigs for $599) some kind of financial credit for their early support.

Dropping the price by $200 after only 2 months on the market makes the early customers look like they were gouged, and leaves a bad taste in the mouth of people who were Apple's most enthusiastic supporters. Also, who's going to want to buy future high-priced Apple products when they first hit the market, knowing that a move like this will happen?

If the iPhone is selling so well, then Apple can surely afford to reward the Apple faithful.

early adopters had the pleasure of using the device in the first two+ months. Isn't all of your salivating co-workers and friends worth the $200 price-tag?

[octane]

Originally Posted by macbear01

Who is extremely pissed off to find out that he overpaid for the 8GB iPhone by $200 only 2 months after it was released?

That would be me! I want a f*ckin' $200 refund! Punish the early adopters. Gotta love that!

Did they have to do this to maintain interest because they haven't released ANY of the feature enhancements that were expected within a few weeks of launch? I'm a f*ckin' sucker!

*raises hand* I'm extremely unhappy at this, infact saying I'm so flaming pissed-off I could shoot someone would be like calling the atlantic ocean a pond.

Two f**king months, Apple. TWO WTF are you thinking?!?! I'm usually one of those people who doesn't question what Apple does because it usually works out, but this is one where I'm on the other side. This hurts, Apple. Call me a whiner, but you basically said, "thanks everyone who bought an iPhone! We're glad you're our customers and helped us get out of the gates with record number! Now f*ck you! We're devaluing your purchase 65% in one hour! Bizzatch, that's what you get for being an early adopter!"

Lesson learned Apple, thanks for being a great teacher.

/rant off

[lepton]

I'm a first day buyer, and I'm a little freaked, but you know what, I'll get over it. A $100 drop would not have surprised me, a $200 drop so soon definitely did. I wouldn't mind getting a year of .mac or a bunch of free ringtones to make up for it, heh! But listen, you know what is going to happen? In early Jan we will see a $500, 16GB 3G iPhone on sale worldwide, and resale value on my old phone just went way, way down. But I'm getting that 3G phone!

You know, I WANT Apple to kick ass. The current product lineup is stellar, absolutely stellar. Where did they even stick the batteries in those new pods? And they are pretty much the only ones out there that are on the right track, both with product design and with the way they sell content. They deserve rewards. Go get 'em Apple!

[octane]

Originally Posted by Denton

early adopters had the pleasure of using the device in the first two+ months. Isn't all of your salivating co-workers and friends worth the $200 price-tag?

Not for TWO months. Maybe 10 months, 1 year, 2 years, hell something substantial!

If you cound't tell, I'm REALLY pissed about this.

I can honestly say I've never bought ANYTHING that was devalued this much this fast in 25 years.

[jkovach]

Not everyone has had their phone since launch, and two months for a price drop this dramatic is anger-provoking.

If I were to purchase the iPhone four months into the product cycle and they reduced the price in month six, that's a bit more expected, and one can reasonably assume an upcoming price drop in that type of timeframe.

The recent iPhone purchasers helped troubleshoot the device, tell them what they wanted, so they added it and then dropped the price. Again, I have learned my lesson and will NEVER purchase another 1.0 Apple product anywhere near launch date. I would imagine that others would feel this way, and when Apple launches iPhone 2.0 at a high price, sales may just suffer as people will await a quick price correction.

[ryukyu]

Originally Posted by GQB

No, you got exactly what you paid for. A fine device (apparently exceptionally fine for a v1.0 product), and 2 months of "ain't I cool" bragging rights.

The real question is, why are you suprised?

I think that everyone expects that prices do eventually drop, but be reasonable.
Does anyone expect a 33% drop in 2 months?
That's a pretty big surprise in my book.

[pt123]

The good news is that all the people that have not bought an iPhone yet are much more happy today. Definitely a big motivator for Christmas season.

[tutumiles1]

I agree with many as respects the price drop in 2 months. While I have all the Apple Products, I will NEVER again buy 1.0 Versions. I do believe Apple did a disservice to many. I am a marketing guy and I understand market corrections but I also understand when you piss off your consumers. Waiting customers cost you money and I will be a "waiter" on Apple products going forward. I was not in a urgent need to buy a phone and Apple got me this time! I accept the criticism from the masses.....

[octane]

Originally Posted by jkovach

Not everyone has had their phone since launch, and two months for a price drop this dramatic is anger-provoking.

If I were to purchase the iPhone four months into the product cycle and they reduced the price in month six, that's a bit more expected, and one can reasonably assume an upcoming price drop in that type of timeframe.

The recent iPhone purchasers helped troubleshoot the device, tell them what they wanted, so they added it and then dropped the price. Again, I have learned my lesson and will NEVER purchase another 1.0 Apple product anywhere near launch date. I would imagine that others would feel this way, and when Apple launches iPhone 2.0 at a high price, sales may just suffer as people will await a quick price correction.

I will DEFINATELY be in that category

[potterhead4]

Originally Posted by SpamSandwich

What will be most interesting will be who hacks the Touch first to get Skype to run on it over Wi-Fi and retrofit a wireless phone earpiece.

Hell, I'll even take one of those crappy old iPod microphones.

(To those who are mad at Apple: 1. You're taking it way too seriously. A $599 iPhone is still an iPhone. 2. Spell definitely right when you're yelling. Please. You all look like idiots when you don't.)

[iJay]

Originally Posted by mjtomlin

Wait a second! You "overpaid" for your iPhone? So you're saying you knew it wasn't a good deal when you bought it? I wouldn't call you a "sucker." ... Moron, idiot, loser; these words are more applicable.

ouch!

i would never pay $599 for the iPhone. $399, i might consider. but i'm still not too happy about signing a two year contract with america's worst carrier

what i just don't understand is how they have the nerve of selling it with 8gb when the iPod 'classic' can get 10 times as much storage they should've at least bumped it to 30gb/80gb for the iPod touch and iPhone...

[schmidm77]

What a bunch of damned babies. If you couldn't afford the $600 for the iPhone or it wasn't worth that much to you, then you shouldn't have bought it. I've had one since the Saturday after they went on sale, and I'm not bothered at all by this price decrease. I am actually pleased as punch that you can now buy song from iTMS over the air. I'm less impressed with the 99 cent ringtones, but I suspect there is more than just Apple involved there; at least it's still cheaper than the $3 some carriers charge and you also get to select what 30 second clip of the song to use via an iTunes interface.

At least Apple didn't pull a sleazy Sony move and deny that a price reduction was going to happen two days before they lowered the price.

[jnrjr79]

Originally Posted by Denton

early adopters had the pleasure of using the device in the first two+ months. Isn't all of your salivating co-workers and friends worth the $200 price-tag?

Not even close. What a lame motivation.

[Matthew Yohe]

Price-correction.

This is a non-issue. (Yes, I bought in on June 29th.)

The "fanboys" will come out in droves I'm sure clamoring for some sort of reimbursement. Please don't.

[padrongus]

I'm also upset about the price drop but I'm more worried that the 4GB model won't be supported in the same way the 8GB models will be - such as with software updates. Anyone have any ideas on this?

[wnurse]

Originally Posted by macbear01

Who is extremely pissed off to find out that he overpaid for the 8GB iPhone by $200 only 2 months after it was released?

That would be me! I want a f*ckin' $200 refund! Punish the early adopters. Gotta love that!

Did they have to do this to maintain interest because they haven't released ANY of the feature enhancements that were expected within a few weeks of launch? I'm a f*ckin' sucker!

Hmm, i'd be pissed too.. of course, i have been ranting and raving how the iphone was overpriced (and have had many arguments online with people about that)..

Yeah, strange how apple manufacturing cost suddenly was reduced by 200 no?.

I was right all along.. apple was gourging
Now after saying all that, i have to praise apple.

They did reduce the price and that is what i wanted. I have been clammoring for them to reduce the price so i have to give them praise for doing just that.. As i stated in a different forum topic.. i can now recommend this phone to people I know.

Good luck with getting that $200 refund. I doubt it will happen (i mean, what if motorola had to refund all the early razr adopters)..

I know this was a quick drop (after only 2 months) but the same principles apply (i would think).. but i understand your feeling.. take a deep breath.. chew a stick of gum.. fume a little and then just chalk it up to being one of the first to get the device.

[mistergsf]

Originally Posted by iJay

ouch!

what i just don't understand is how they have the nerve of selling it with 8gb when the iPod 'classic' can get 10 times as much storage they should've at least bumped it to 30gb/80gb for the iPod touch and iPhone...

The iPod Classic is hard drive and the iPhones have flash. That's why the disparity in storgage.

[mstone]

Bitch, bitch bitch.

Do you still like your iPhone or not?

Maybe you guys were just foolish to purchase an iPhone. If $200 dollars is such a huge issue, you probably couldn't afford it in the first place. That product was never designed for a budget conscious consumer. You knew the price was going to drop eventually. If you were smart, you would have waited - but Nooo... you had to have it right now didn't you?

[padrongus]

The 4GB model is now $299 while supplies last.

[octane]

Originally Posted by mstone

Bitch, bitch bitch.

Do you still like your iPhone or not?

Maybe you guys were just foolish to purchase an iPhone. If $200 dollars is such a huge issue, you probably couldn't afford it in the first place. That product was never designed for a budget conscious consumer. You knew the price was going to drop eventually. If you were smart, you would have waited - but Nooo... you had to have it right now didn't you?

You're missing the point. This is not typical of Apple. I feel burned by it and have learned a lesson, after today Apple will get far less of my money than they have in the past.

[anantksundaram]

Notwithstanding the fact that a 33% price drop in a two-month period is draconian, I got exactly what I paid for at $599 (with some added functionality now), so I am not complaining.

That said, I do feel badly for those who could not afford this easily, and probably were able to buy one only because they saved every hard-earned penny. Another category of early adopters is the really well-off who don't like to feel shafted. It makes no sense for Apple to p*$$ off either group.

For these reasons I think that the early adopters are owed some sort of quid pro quo from Apple (e.g., free ringtones).

In any event, I smell a lawsuit coming.......

[GreggWSmith]

Well I am pretty pissed off. My $599 phone just dropped in price and the one my boss bought last week (at my urging no less) did too! I look like a total schmuck. Just when I was working on getting the company to buy some MacBooks too! LOL Oh, and my MacBook keeps randomly shutting down this week as well. Aargh! One month out of warranty.
I see the Apple Support Discussions are down. I wonder if it's due to people raging about the price drop too?
Geez it's gonna get ugly I fear.

[S10]

For all the negative comments here.. please look at what other phone makers do.... like Nokia and Moto... exactly.. they do the same... in the phone business prices drop faster than in any other segment.

Of course I would have preferred to pay the $399 price, but I knew I was paying a premium for being one of the first to have an iPhone and didn't care then and shouldn't care now.