

Wired: Four Mistakes Apple Made Slashing Pricing - vlad
http://blog.wired.com/business/2007/09/four-mistakes-a.html

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vlad
I agree with Jobs over this article. Thousands of customers have already
decided that $2,500 was the right price for a cell phone with 900 minutes a
month for 2 years. They didn't care that this product had no third-party
software available, nor that it was new, unseen, expensive, and locked to one
phone company and music service.

Such users don't want a price cut--they love voting for usability by paying
$599 for a phone. They expect others to pay less. All they want is to have
tons of great new features and apps to come out over the next 2 years to
justify _their_ purchase.

Thus, the more users and developers own the iPhone, the better. The more
marketshare an Internet-enabled application or device gets, the more resources
that the company and 3rd party companies will dedicate to supporting the
product. And if the owners feel they got their $599 worth of fun and
productivity, they'll be happy.

It's likely the complaints are coming from price-sensitive individuals who
recently purchased the iPhone on the news that they could get out of the
$1,920 contract and use it on a $30 T-Mobile plan. I think early adopters want
this product to take off and will not hate Apple; it was clear that $599 was
going to be the price-point for only a short time.

For me, $399 is too expensive as I like my current phone and plan.

