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Wired: Four Mistakes Apple Made Slashing Pricing (wired.com)
2 points by vlad on Sept 6, 2007 | hide | past | favorite | 1 comment



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.




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