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