It’s as simple as one, two, three for Apple. If it wants to dominate the cellphone, MP3 and PMP market, all it has to do is cut prices across the board… beginning with the iPhone. Steve Jobs will be known for masterminding the greatest conquest in the world of business. Now with the 8GB iPod going for $399 (cheaper than almost every smartphone model in the market), Apple is in the position to steer the wireless gadget market to whichever direction it want it to be. Apple is in the driver seat. The 1.8% market share it took in July is just the warning shot. And oh, no more 4GB iPhones.
Update: But what happens to those 4GB that’s already been shipped. They are priced at a only $299 and it will be a pity not to buy one now and jump on to the AT&T Death Star…. Nope, too late, too many many people logging into the Apple Store for the iPhone it’s currently down. Let’s hope they’re buying eight-gigs instead of four-gigs.
More Update: Apple Store is back and 4GB iPhones are still available! Just remember, AT&T comes with the package, or just buy one and read this: iPhoneSIMFree Unlocks iPhones.
Even more update: If you bought an iPhone within the past ten days (10 days before the iPhone price drop 09.5.2007), you’re in luck; Apple is going to give you $200 back.
[via reuters]
September 5th, 2007 at 1:03 pm
Horrible Idea!!!
I have been in Jobs situation before..sales are slow.. competition is slashing prices… BUT….
You never make your most loyal customers, the customers that waited for days in line, feel like they got Shafted…
Their most loyal fans are now going to possible start blogging about how Apple ripped them off by $200. If their are any issues with batteries, touch screen, they will be less sympathetic.
Then dropping the price by over 25% in just 2 months shows that they are not confident. It could be the no-Name mp4 nano’s and Touch-pmp’s that are doing it, but still…
You NEVER ever see Louis Vuitton or Gucci slash prices - not even 5%. The price of “luxury” goods always go up. Apple to many was seen as a luxury brand.
now, whenever apple has a new release - let’s say the iCar, or iTV, or iFish Tank, nobody, is going to line up for dayz…
Point in Case is: lowering the price to dominate market share is good economics “text book” wise,,, but doing so, when they really didn’t have to, just makes loyal customers that lined up for days feel bad. Also, ebay iphone sellers/sales will drop…
Don’t know if apple feels that the no-Named mp4s are creeping up on them… or what..
September 5th, 2007 at 6:50 pm
Nah, they expected price slashes. Maybe not this soon, but I’m sure Apple is going to reward early birds.
I think Apple is dropping the price because it smells blood. It can take it all.
September 5th, 2007 at 7:20 pm
U.K. British Isles, iPhone Europe and was
iPod Germany iPhone,
Russia iPod Nano,
Apple iPhone France iPhone
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