iPhone Quick Price Drop: What's an Early Adopter To Do Now? - InformationWeek

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9/7/2007
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iPhone Quick Price Drop: What's an Early Adopter To Do Now?

It used to be that it took a couple of years for the price of some new software or tech gadget to drop. But Apple has just set a new record: It dropped the price of its 8GB iPhone from $599 to $399 a mere 10 weeks after thousands of eager buyers camped out in front of Apple stores to b

It used to be that it took a couple of years for the price of some new software or tech gadget to drop. But Apple has just set a new record: It dropped the price of its 8GB iPhone from $599 to $399 a mere 10 weeks after thousands of eager buyers camped out in front of Apple stores to be the first to buy the iPhoneThose early adopters helped Apple grab a nice little chunk of the smartphone market but the company apparently wants more.

In an Q & A interview with USA Today, Apple CEO Steve Jobs said, "The product's been extremely well accepted; we want to put the pedal to the metal."

USA Today then asked what many of those who plunked down nearly $600 just a short time ago want to know: "What do you say to customers who just bought a new iPhone for $599? Sorry?"

Jobs response: "That's technology. If they bought it this morning, they should go back to where they bought it and talk to them. If they bought it a month ago, well, that's what happens in technology."

To be fair, in response to an outcry from iPhone customers, Jobs has relented a bit and decided to offer all early iPhone customers a $100 store credit "towards the purchase of any product at an Apple Retail Store or the Apple Online Store."

But many Apple customers are still smarting over what seems now like an impulsive and slightly foolhardy move. Thus, the question remains: Is that what is going to happen in technology now? Is Apple setting a new precedent in the speed in which prices drop in new tech products? If so, where does that leave IT managers looking to upgrade or purchase new hardware or software? As USA Today's small business blogger Jim Hopkins writes: "Apple's decision to cut the price of its iPhone by 33% soon after it launched is a great example of the nightmare scenario that keeps many small-business owners up at night. With little money to spend on tech, owners fear they'll sink a fortune into new software or hardware -- then find it's overpriced or out-of-date just as it's being installed."

Does iPhone's quick price drop make you think twice about springing for that new piece of hardware or software? Has Apple succeeded in taking the thrill out of being an early adopter? Let me know.

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