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i'M Sorry


Billster

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Apple has come to brilliant conclusion that you'll sell more of something if it costs less. As far as I know, that discovery is unprecedented in the world of business, and once again shows that Apple is right out there on the leading edge of contemporary thinking!

 

Okay, enough sarcasm...I think what it costs now is what it should have cost originally, but what do I know?

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Marketing round 1: iPhone - Super-cool, and way expensive. Media swoons

Marketing round 2: New applications of technology debuted on iPhone. Price cut on iPhone. Media swoons.

Marketing round 3: Early buyers lash out. Media swoons

Marketing round 4: iMmediately hand out rebate checks to early high-price buyers (indicating that initial price was too high). Media swoons.

 

What other company gets so much free exposure with constant news churn about products and prices? It's either cynical, brilliant or both.

 

Imagine if Ford had cut the price of the Mustang by 33% as soon as manufacturing could meet demand after the initial surge of "first on the block" customers paid a premium.

 

And I'm a Mac user.

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While I'm not without sympathy for the feelings of early buyers, I can't help but feel like these folks KNEW or at least should have known they were going out on a limb in terms of competitive purchasing decisions. If this is their worst gotchya, I'd say they're doing pretty well.

 

If the phone isn't selling up to expectation, Apple has to do what it has to do to get critical market penetration.

 

People got so caught up in the breathless pop-tech writer gushing about how the iPhone outsold all other phones its first month (I even saw a couple articles so boneheaded that they put forth the contention, laughable on its face, that it outsold all others combined) that they apparently overlooked the fact that a) it was directly related to the huge media push (thanks to same shameless gushing pop-tech writers) around the "iPhone Weekend" and b) that that still only added up to about a 2% market share for the first month.

 

The mobile phone market is nothing like the protected niche Apple has carved for the Mac.

 

They presumably have a huge product development investment in the iPhone and apparently share the increasingly widespread perception that Apple will have to work much harder to get the all-important continuing marketshare than many (but certainly not all) thought.

 

 

What I thought was interesting was the initial write-ups of this news from that same pop-tech writing contingent -- who continued gushing and hyping -- and largely ignoring the sales expectation backstory that was picked up by more hard-headed business writers.

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They presumably have a
huge
product development investment in the iPhone ...

 

 

 

Which is why the touchscreen and other gee-whiz features are on the newest iPod. They are spreading the development across additional products, which is another engine for lowering the iPhone price.

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If people are silly enough to STAND IN LINE for a PHONE, who cares is they overpaid?

 

I have seen lines of people over and over for various things, paying top dollar ( PS3-XBox/Wii-PSP) or whatever the gadget du jour is...They ALWAYS pay top dollar, and the price has ALWAYS dropped. The cost of being an avid techno-junkie.

 

From where I sit, Apple charged what they thought they could get, then re-introduced at round 2 at a lower price point after things cooled off a bit. They paid for their initial investment in the product by front loading the profit counting on the wave of 'gotta have it' types, then, were proactive with a little give back with no media pressure.

 

No other company has done this from what I know. Korg is not giving rebates to the first Triton owners. Cubase is not cutting checks to the people who got full popped on a retail box then found out a paid upgrade was in the pipe. Apple is on a roll, and continues to impress me with their products, their vision, their overall actions vs. words attitude. The iPod Touch is EXACTLY what I predicted a couple months ago, the phone without the phone. They are gonna sell craploads of these, and people are gonna love em. I have a box of old PDA/gadgets downstairs that are nearly ALL broken promises. NONE worked as promised, stayed active, stayed viable. Apple is breaking this trend.

 

And yes, I have drunk the kool-aid..:) but I DO NOT have an iPhone cause AT and T SUCKS. I will be getting a new nano to replace my since given away ipod Mini.

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