Jobs says Apple won't offer refunds to early iPhone adopters
Many of Apple's most loyal customers are feeling taken by the company after it announced an unprecedented 33 percent price cut on its iPhone handset after just two months on the market, but chief executive Steve Jobs in an interview Wednesday said that's just the tough luck of technology.
Asked what he would say to customers who just bought a new iPhone for $599, Jobs told USA Today that his company's move is just an unfortunately reality of the cut-throat technology world in which we all entangle ourselves.
"If they bought it this morning, they should go back to where they bought it and talk to them," he said. "If they bought it a month ago, well, that's what happens in technology."
Jobs went on to say that Apple's high-volume manufacturing will prevent it from taking a considerable hit on costs following the $200 price reduction.
"We're also willing to be more aggressive. We think we have a real winner, and customers love the iPhone," he explained. "The product's been extremely well accepted; we want to put the pedal to the metal. A holiday season is approaching; we'd have to wait another year for another one."
In the meantime, however, Apple's dramatic iPhone price cut has drawn the ire of thousands of its most faithful customers, many of which waited hours on long lines in late June to fork over what now seems to be an unreasonable fee for being amongst the iPhone elite.
In fact, the move has sparked an outright rebellion in the Apple support forums, where discussion threads filled with hate mail are piling up faster than Apple can delete them. One customer created a thread to note that Apple in a matter of hours had managed to delete over 2,200 customer complaints only to watch that very thread become victim to censorship itself.
"The more the day goes by, the more furious I become," wrote VSiskos in "1 Million People Slapped In The Face Today," one of the forum threads still standing as of Wednesday evening.
Under's Apple's standard return policy, customers who bought a product within 14 days of a price reduction can ask to be reimbursed the difference, and some Apple stores have reportedly done the same for iPhones purchased earlier than that.
But as Philip Elmer-DeWitt blogs for Business 2.0, those random acts of flexibility seem only to have further inflamed the wounded feelings of those who weren't extended the same courtesy.
"They told me to shove it," wrote tulanejosjh. "14 days or nothing."
"Same here," added jmolina1313. "The guy treated me like I was on drugs!"
Many customers seeking refunds on Wednesday reported being treated rudely, which is not something you often hear about Apple employees and quite a contrast to the scene in the same stores two months ago.
"The last time I walked into an Apple Store there were lines of employees clapping and giving high fives to congradulate us on the wise decision to buy an iPhone," wrote ck2875. "I wonder if going back for this would be similar?"
Asked what he would say to customers who just bought a new iPhone for $599, Jobs told USA Today that his company's move is just an unfortunately reality of the cut-throat technology world in which we all entangle ourselves.
"If they bought it this morning, they should go back to where they bought it and talk to them," he said. "If they bought it a month ago, well, that's what happens in technology."
Jobs went on to say that Apple's high-volume manufacturing will prevent it from taking a considerable hit on costs following the $200 price reduction.
"We're also willing to be more aggressive. We think we have a real winner, and customers love the iPhone," he explained. "The product's been extremely well accepted; we want to put the pedal to the metal. A holiday season is approaching; we'd have to wait another year for another one."
In the meantime, however, Apple's dramatic iPhone price cut has drawn the ire of thousands of its most faithful customers, many of which waited hours on long lines in late June to fork over what now seems to be an unreasonable fee for being amongst the iPhone elite.
In fact, the move has sparked an outright rebellion in the Apple support forums, where discussion threads filled with hate mail are piling up faster than Apple can delete them. One customer created a thread to note that Apple in a matter of hours had managed to delete over 2,200 customer complaints only to watch that very thread become victim to censorship itself.
"The more the day goes by, the more furious I become," wrote VSiskos in "1 Million People Slapped In The Face Today," one of the forum threads still standing as of Wednesday evening.
Under's Apple's standard return policy, customers who bought a product within 14 days of a price reduction can ask to be reimbursed the difference, and some Apple stores have reportedly done the same for iPhones purchased earlier than that.
But as Philip Elmer-DeWitt blogs for Business 2.0, those random acts of flexibility seem only to have further inflamed the wounded feelings of those who weren't extended the same courtesy.
"They told me to shove it," wrote tulanejosjh. "14 days or nothing."
"Same here," added jmolina1313. "The guy treated me like I was on drugs!"
Many customers seeking refunds on Wednesday reported being treated rudely, which is not something you often hear about Apple employees and quite a contrast to the scene in the same stores two months ago.
"The last time I walked into an Apple Store there were lines of employees clapping and giving high fives to congradulate us on the wise decision to buy an iPhone," wrote ck2875. "I wonder if going back for this would be similar?"
Comments
but if you bought iPhone like 2 months ago, then what da hell is there to complain about? it is so obvious that Apple shouldn't be giving refunds. maybe I should ask for refunds on some of the macs I bought which went down in price after 2-3 years.
I don't see anything wrong with what Jobs is doing here.
I've really been waiting for a MacBook Pro and now that prices are falling fast I think I'll just wait for it to go from $2495.00 to $1750.00. And you know, since it's actually been out for a while they might even drop the price all the way to $1495.00. I know the price drop is coming so I'll just wait until it does to buy ANY more Apple products.
If Apple sees a big drop in sales in the coming months it's because customers are waiting for the big drop in price.
That's technology!
Hal
That is an opinion-not a factual statement.
The times I've gone to the Apple Store I've had my fair share of problems with indifferent, sometimes clue less people who carry a streak of arrogance. So much so that I try to actually deal with Apple Store people as little as possible (which is hard).
if you bought iPhone on Tuesday, then I feel your pain (you can probably get $200 back though).
but if you bought iPhone like 2 months ago, then what da hell is there to complain about? it is so obvious that Apple shouldn't be giving refunds. maybe I should ask for refunds on some of the macs I bought which went down in price after 2-3 years.
I don't see anything wrong with what Jobs is doing here.
I think the press, eager as it always has been to write anything negative about the iPhone, is making a big deal out of nothing. Even if there really are "thousands" of upset loyal Apple fans, that means there are hundreds of thousands of loyal Apple fans like myself who aren't upset at all. Once again, the vocal minority gives the impression that the sky is falling.
The only mistake Apple made is announcing the price drop on the day of the event, instead of waiting a day or two to allow some positive press for all the cool new iPod releases. This morning I'm reading a lot more about blogs and user forums full of typical Apple fanboy babies upset about a price drop (since when is a price drop a bad thing in any industry?) than I am about the all-new nano (which is cheaper than its predecessor, by the way) or the touch, or the Wi-Fi iTunes announcement, etc.
Knowing what I now know about the price drop, if I could go back in time I still wouldn't wait ten weeks to buy an iPhone. I'm guessing most other iPhone users would say the same thing.
$200 is a night or two out at a nice restaurant. I'll take ten weeks of iPhone ownership over that any day of the week.
I honestly think that Apple's "loyal customers" are its worst enemies. Always crying over spilled milk and giving the rest of the world the false impression of poor customer satisfaction. And the press just eats that up.
Had I just bought the iPhone three weeks ago, I would probably feel disappointed and slightly angry, but up until last night I would have been thinking I made the best deal ever
And love the new iPods. Apart from iChub I must see in real life first.
I don't see anything wrong with what Jobs is doing here.
Totally agree. When are people going to start realizing that they need to match the price they pay for something to value they will get out of it? Period. What something costs in a day, a week or a year has zero relevance. Yes, there is an emotional pull when the change happens. But what doesn't change is the assesment the person should have made at the time: Cost Vs. Perceived Value
Does that mean you have to smile and be happy about it? Of course not. Especially when the drop is bigger and faster than anything else from Apple (or most other tech companies) has been. But the core principals we must all use when buying anything did not change with yesterday's news. So vent that and move on. When I read words like "cheated" or "stolen from" or "insulted", I am reminded that even Apple's wonderfully 10X smarter than the PC-drones customers still have a large number of small-minded children among them.
Although I do like the precedent here...going to leave work early to call my high school girlfriend and explain why she owes me more sex since I've heard she puts out like crazy now and never gave it up for me (no, I'm not 100% certain the analogy is the same, but I'm willing to give it a shot).
<Sorry for calling anyone a child. I'm not a fan of the shotgun insult, but this groundswell has me annoyed. I'm not an Apple-defender; I just don't react well to situations where critical thinking is missing>
I called Apple yesterday requested an RMA for my refurbished 4GB model I bought last week and was emailed the Fedex return label. I then went to my local store and bought a new 8GB at the new price. Don't wait and don't feel bad - business is business and money is money. I love the iPhone but if I can get a better one at the same or better price - then why not.
Note to self: Tech prices now are dropping faster than ever. Wait two months and save 33% on hot selling products.
I've really been waiting for a MacBook Pro and now that prices are falling fast I think I'll just wait for it to go from $2495.00 to $1750.00. And you know, since it's actually been out for a while they might even drop the price all the way to $1495.00. I know the price drop is coming so I'll just wait until it does to buy ANY more Apple products.
That's technology!
Hal
true!
I feel like stucked .. because i've been waiting for the right release like .. for ages.
I just can't understand why is it that the MacBook Pros have the monster- DVI interface ,and the iMacs the mini DVIs .. ,
Just think about this ... magnet - safe power plug .. ok ! and that .. a f$*(ed up DVI with srews .. WTF mate !
and no NAND flash buffer!?
and HELL THERE IS NO more a powerful mobile machine .. since PB 12 !? can't wait any longer ,cupertino !
That said, if you bought it within the past two weeks, just call Apple. You should be able to get a refund. Otherwise, just return and get a new one.
Also, if you used an Amex to purchase, they have a price-match policy for 60 days. Other credit cards may have similar policies.
I bought on June 29th so am kinda out of luck.
T...going to leave work early to call my high school girlfriend and explain why she owes me more sex since I've heard she puts out like crazy now and never gave it up for me
Actually... considering an earlier post, bring a lawyer and all other "users" who might feel the same
So ? if the group that paid $499 or $599 is really upset ? why not act together to show apple our frustration.
I have a better idea...why don't you sell your iPhone and recoup some of your supposed losses?
I think the press, eager as it always has been to write anything negative about the iPhone..
Yeah, the press has been real tough on Apple the past few years.
I think almost 1 million people learned a valuable lesson about impulse buying.
It's a shame we live in a nation of crybabies.
Note to self: Tech prices now are dropping faster than ever. Wait two months and save 33% on hot selling products.
I've really been waiting for a MacBook Pro and now that prices are falling fast I think I'll just wait for it to go from $2495.00 to $1750.00. And you know, since it's actually been out for a while they might even drop the price all the way to $1495.00. I know the price drop is coming so I'll just wait until it does to buy ANY more Apple products.
If Apple sees a big drop in sales in the coming months it's because customers are waiting for the big drop in price.
That's technology!
Hal
Hello? we're talking iPhone here.. it's a phone... not a computer... not an mps player.. not a game console...phone prices drop much fatser than anything else in the electronic industry.. why? because they produce so many of them, production costs go down much faster.
Go figure
"Many customers seeking refunds on Wednesday reported being treated rudely, which is not something you often hear about Apple employees and quite a contrast to the scene in the same stores two months ago."
That is an opinion-not a factual statement.
The times I've gone to the Apple Store I've had my fair share of problems with indifferent, sometimes clue less people who carry a streak of arrogance. Somuch so that I try to actually deal with Apple Store people as little as possible (which is hard).
Although I wonder what kind of attitude some of these people tying to get a refund showed up with.