09/14/07 10:52 - ID#41107

Apple Pricing

My take on the Apple Rebate for the $200 drop in price on iPhones, in response to a question about how I could be happy to be partially refunded after being 'overcharged'.

Saying they overcharged me is wrong, it is just not an accurate description of the economic transaction that I participated in. They asked for $600 and I thought it was worth $600 *TO ME*, and so I paid. This is how a market works. What the price is two months later is completely irrelevant. Prices on electronics always drop or better models come out. I was charged exactly the agreed upon amount.

Apple is giving credit to make up for the price drop, yes. But they do not feel bad for overcharging me, because there was no overcharging. There is just a different charge now, that is lower, and they are doing partial credits to acknowledge that it was quicker then usually happens. That is good manners, in my book.

The rebate process was super easy, and I never expected a rebate or credit, so I am happy to get it.

Additionally: the price was high when initial demand was high, and now that they're heading into Christmas and have production ramped up, they dropped the price to gain market share. I'm glad I paid an extra $200 to Apple if it meant I could walk into an Apple store and buy an iPhone, instead of not being able to get a phone because they were going for an extra $1000 on eBay because the prices at launch were so low that demand was out of sync with supply causing scalper scum to snatch up every damn phone in the country.

That's what happened to the Wii and xBox and PS3, to buy one you had to spend a small fortune on eBay. Apple priced the iPhone high enough that they were selling them at the same rate they were making them, thus ensuring they were stocked in stores. Sure, they made more money, but what the hell? They are a business not a commune of hippies. I am happy with how everything has gone.

(this was originally a comment on this post)

uncutsaniflush writes at 02:21:03 09/15/07 - Comment #24496: Hmmm, (e:jim) why do you feel it is important to point out that you didn't buy the iPhone to be the first on the block? Is there something wrong with being the first on the block?

Personally, the major reason I'm rarely the first kid on the block to get anything is because and I'm cheap and lazy.

By the way, I enjoyed your humorous reference to the origins of Apple's name. It is true that even though Steve Jobs came up with the "Apple" name after visiting a hippie commune, he and the other Steve chose to start a for-profit business instead of a hippie commune.

jim writes at 10:43:52 09/15/07 - Comment #24485: I want to be clear that I did not buy this to be the first on the block. I needed a new phone, and I paid extra for a phone that would be enough of a computer that I could leave my laptop at home instead of lugging it everywhere. Also, since I use a Mac, this is the first phone that has flawless Mac syncing, a big plus. So for me that is the value of the phone, not status or bragging rights.

uncutsaniflush writes at 08:32:37 09/15/07 - Comment #24479: I don't tend to be an early adoptor for variety of reasons including the high initial cost. As I said in my last comment, I am happy that you are happy with the iPhone credit situation. You are certainly right that Apple didn't "have" to do anything at all.

As to the "overcharging", since I don't have an iPhone, who am I to disagree? Personally, paying extra to be the first kid on the block with aany product just isn't worth it to me. So if I got an iPHone and two months later it was $200 cheaper I would feel "overcharged" And that is why I don't tend to buy anything when it first comes out. But is just me. I

Happy iPhoning.

(this was originally a comment on this post :::link:::)

jenks writes at 01:28:42 09/15/07 - Comment #24474: Couldn't say it better myself. People keep asking me if I'm pissed the price went down. I said no, that's just how it works. The price you pay for being an early adopter.

I am a little sick of people bashing iphone to me, though. Saying I'm stupid for paying all that money, that ATT sucks, that THEY would never pay that much...

Whatever... I paid almost $400 for an ipod before. Several times. I paid $400+ for my Treo.... Whether or not it's "worth" it- I was willing to spend the money.

But apple announced that they just sold their one millionth iphone. After 74 days on the market.

I don't know crap about sales or marketing or business- I don't know if selling a million in 74 days is a big deal- except that they said it took almost 2 YEARS to sell a million ipods.

So apparently I wasn't alone in being willing to spend money. And to switch to att...

And honestly, I've heard plenty of people say "i would never buy an iphone. it's a rip off, it doesn't do x y or z." But I have never heard anyone with an iphone say they don't like it ore regret buying it.

wow, sorry, long comment.

Permalink: Apple_Pricing.html
Words: 360

Category: commerce

09/14/07 11:23 - ID#41091

The Way Rebates Should Be

11:12 AM - Go to Apple's Site
11:12 AM - Click, '$100 Apple Store Credit for iPhone'
11:12 AM - Enter Serial Number and Phone Number
11:13 AM - Get text message with claim number
11:13 AM - Enter claim number on Apple's site
11:14 AM - $100 Credit in hand

Seriously, every rebate everywhere should be handled like this. Not like the crazy Best Buy ones that take like 3 months to find out that they lost your paperwork and you're out of luck.

jenks writes at 12:28:12 09/15/07 - Comment #24490: I guess it just shows that "worth" is determined by the market. Do I think ANY professional athlete is "worth" millions and millions of dollars? Hell no. But, people will pay it, so I guess I'm wrong there. Is a phone 'worth' $600? Who knows, but people pay it...

uncutsaniflush writes at 08:25:00 09/15/07 - Comment #24478: I don't tend to be an early adoptor for variety of reasons including the high initial cost. As I said in my last comment, I am happy that you are happy with the iPhone credit situation. You are certainly right that Apple didn't "have" to do anything at all.

As to the "overcharging", since I don't have an iPhone, who am I to disagree?

Happy iPhoning.

jim writes at 10:41:26 09/14/07 - Comment #24466: - Saying they overcharged me is wrong, it is just not an accurate description of the economic transaction that I participated in. They asked for $600 and I thought it was worth $600 *TO ME*, and so I paid. This is how a market works. What the price is two months later is completely irrelevant. Prices on electronics always drop or better models come out.

- Apple is giving credit to make up for the price drop, yes. But they do not feel bad for overcharging me, because there was no overcharging. There is just a different charge now, that is lower, and they are doing partial credits to acknowledge that it was quicker then usually happens. That is good manners, in my book.

- The rebate process was super easy, and I never expected a rebate or credit, so I am happy to get it.

The price was high when initial demand was high, and now that they're heading into Christmas and have production ramped up, they dropped the price to gain market share. I'm glad I paid an extra $200 to Apple if it meant I could walk into an Apple store and buy an iPhone, instead of not being able to get a phone because they were going for an extra $1000 on eBay because the prices at launch were so low that demand was out of sync with supply causing scalper scum to snatch up every damn phone in the country. Like happened to the Wii and xBox and PS3. Do you really think that's a better situation for people to be in? I do not.

uncutsaniflush writes at 10:07:27 09/14/07 - Comment #24464: Let me get this straight:
- Apple overcharges you $200 for an iPhone
- Apple decides to give you a $100 store credit because they feel bad for charging you too much.
- You are grateful because they give you the store credit quickly and easily.

I'm just an unfrozen caveman linux geek and your modern Apple ways frighten and confuse me, but one thing I know for sure, if someone overcharged me $200, I wouldn't be happy until got $200 cash money back from them.

That being said, I'm happy that you're happy.

Permalink: The_Way_Rebates_Should_Be.html
Words: 77

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