Jobs is exactly right. I am an avid Apple fan, I own a large amount of their common stock, and many Macintosh computers, iPods, and of course an iPhone. I knew I was taking a risk in buying any first generation Apple Product. It could have been a complete dud. It is not though.
Prices of technology fall, dramatically sometimes. I think the company saw that the pricing structure was just too high to hit its targets. Oh, well. I paid too much money for an I item I still enjoy. As an economist, I understand that I would still be willing and able to purchase and iPhone at the $599 price point, if it were still at that price. All Apple has done was "create" a larger consumer surplus for many people including myself. So, when I purchase my next iPhone I will see it as more of a bargain. Some people have been complaining that their iPhone has depreciated by $50 per week since launch. This is correct; but do you get less satisfaction from knowing that the price is now lower? Do you like your iPhone less? Well if you do, then sell it. Remember the $599 price is a sunk cost and should not be influential in future decisions. Basically what I am saying is get over it! It is just money.
Prices of technology fall, dramatically sometimes. I think the company saw that the pricing structure was just too high to hit its targets. Oh, well. I paid too much money for an I item I still enjoy. As an economist, I understand that I would still be willing and able to purchase and iPhone at the $599 price point, if it were still at that price. All Apple has done was "create" a larger consumer surplus for many people including myself. So, when I purchase my next iPhone I will see it as more of a bargain. Some people have been complaining that their iPhone has depreciated by $50 per week since launch. This is correct; but do you get less satisfaction from knowing that the price is now lower? Do you like your iPhone less? Well if you do, then sell it. Remember the $599 price is a sunk cost and should not be influential in future decisions. Basically what I am saying is get over it! It is just money.









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