The iPhone: can you say iRebate?

9 Sep

Following a two-month sales high, Steve Jobs announced that Apple Computers Inc. would be lowering the price of the iPhone, their newest product, from $599 to $399 for the 8 GB model in time for the holiday season.

Jobs broke the news to the public at an Apple Event in San Francisco on Thursday, where he previewed the new versions of the iPod Nano and the iPod Touch, another brand-new product that Apple is releasing for the holiday season.

“It’s pretty amazing, and this is what we’re going into the holiday season with,” Jobs said in reference to Apple’s lineup of products, “but we want to get more aggressive.”

Apple has been known for its quick innovations, and upgrades one right after another, but this plan came from the biggest hype that Apple has ever seen. In just the first day on June 29 of this year, Apple dished out 270,000 iPhones. The following weeks of sales did not go as high as Jobs had hoped, which in turn, led to his decision to lower the price.

“The surveys are in, and the numbers on the customer satisfaction for the iPhone are off the charts,” Job said, “the customer [satisfaction] numbers are higher for the iPhone than any other Apple product ever.”

The iPhone faced much scrutiny before it was released in June, following speculation that the touch screen was a malfunction waiting to happen and that all the things it was capable of would get too confusing for luddites used to simple keypads and camera phones. But the iPhone exceeded expectations, turning itself into the top item on most of America’s holiday wish lists.

“We’re on track, to ship our millionth iPhone at the end of this month, and to get ready for the holiday season, here’s what we’re going to do…the 8 GB model is not going to sell for $599 anymore. Starting today effective immediately going into this holiday season, we are going to price the 8 GB model of the iPhone at just $399.”

The audience applauded Jobs on his proclamation, as well as the rest of America. Jobs even thought about all those iPhone users who bought their model for the full $599 in the last two months. Apple will be sending a $100 credit for any Apple store to all the people who already use the iPhone. It’s not quite a rebate, but it is following in Apple’s user-friendly policy.

As the applause died down, Jobs ended the conference, “we want to put iPhones in a lot of stockings this holiday season.”


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