Straight Angle™: iPhone, Price- Is it Worth it?
Saturday, September 08, 2007

iPhone, Price- Is it Worth it? 

Ok. Lets get this thing straight. I was indeed following the Steve Job-"The Beat Goes on" speech, where he slashed the price of iPhone by around 30%. I was following it in Engadget and I was excited with iPod Nano, iPod Classic and all. It was very exciting to see iPod Touch- but then, why was I squeaking in the chair, with so much happening around?
  • Now, there is very little difference between an iPod Touch and an iPhone (looks-wise), and iPod Touch comes cheaper, with no monthly charges :)
  • While I don't mind paying the 600$ that I paid for iPhone, I do expect a comfortable zone of exclusivity, when I can be the "Cool-Kid" in the block.
  • True- when you are the early adapter, you are bound to be made obsolete soon- but how soon is the case in point- Apple had traditionally been a brand that would let you enjoy this for quite sometime.
  • 66 days off the launch and the price is reduced by 30%- this is too soon and too steep.
  • There were no appreciable updates for iPhone itself- except the iTunes Wi-Fi Music Store and the ringtones. I am not interested in buying a ringtone for .99$ and not interested in the iTunes Music Store too. I was expecting something along launching iPhone internationally- though I know it might be launched in Europe, Asia (India) is largely out of Steve's radar right now.
I did enjoy the period of "unrestrained enthusiasm" for the phone even with strangers- when I would proudly show off. I just wanted it to last a bit longer than this.

I am as well excited by the $100 credit that Jobs had offered- but I just can't help but marvel at the marketing stunt that he had pulled off. It is not easy to antagonize your ardent followers and then pull it off with minimum damage. I don't think the 100$ credit that was offered is a "I-see-the-reaction-and-then-offer" act. It must have been a carefully planned out strategy- the price reduction is an eventuality, a certainty waiting to happen. Only the timing was unexpected. I am sure Steve would have factored the angry reaction from the early adopters that followed the announcement and would have already formulated this credit offer long before he even announced the reduction.

Now, he had made even those who were disappointed with the price reduction to buy and thus keep buying more from Apple. Had this been a knee-jerk reaction to the angry feedback, he might have as well given a reimbursement. The fact that Apple had made only a credit available for future purchases, speaks volumes about the planning. I don't buy the argument that this is reflective of the disappointing sales of iPhone. Though I think 600$ is a steep price to make it a mass product, I do believe the sales had been well towards the target- Time would say if that is true or not.

In the meanwhile, I am looking out for 10 more iPhone early birds to share the 100$ credit with me, so that I can buy an iMac! ;)

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