Apple takes the bite off $599 iPhone
Issue date: 9/25/07 Section: News
Shortly after Apple first released the tech savvy iPhone two months ago, the company decided to reduce the price of the eight gigabyte phone from $599 to $399.
Apple's Chief Executive Officer Steve Jobs announced the $200 price drop on Sept. 5, according to PC World. Because many early buyers were upset, Apple made a subsequent decision to offer $100 store credit.
However, according to Apple, the customer would have to have purchased the iPhone before Aug. 22 in order to be eligible for instant store credit. The credit is redeemable at Apple retail stores or the Apple online store.
PC World also said that the price reduction has resulted in a demand for the device from college students in particular.
According to PC World, SurveyU conducted a poll including 1,000 students, just hours after Jobs made his announcement. The poll found that before the price dropped, 80 percent of students wanted the phone compared with after when 90 percent wanted it.
In addition, students who planned to purchase an iPhone when their contract expires increased from four percent to 11 percent.
The iPhone has an exclusive contract with AT&T.
The survey also indicated that the number of students who planned on purchasing the phone within the next few months went from two to four percent and from zero to .5 percent for those who were going to buy the phone immediately.
Although the price decrease upset many early buyers, some people like 21-year-old Mt. SAC student Daniel McDonald said that it was absolutely worth $599.
"I like the fact that every morning I can check the weather, what it's going to be today," McDonald said. "I don't have to turn on the TV or do anything - it's automatically there."
McDonald also said that the Google Maps feature is something that he uses on a daily basis.
"I was really surprised," McDonald added. "You can punch in anything, the nearest Starbucks, anything you want! It gives you directions and it's nice not to have to print directions to a location."
With the Google Maps feature, it shows not just the directions on the phone, but it displays the phone number of the particular place you are looking for as well.
"I don't even know of a navigation system that can do that," McDonald said.
McDonald, who says that the phone has made his life easier, got the phone back in July. He was just thinking about buying it when he went into the store, and he needed a new phone anyway.
McDonald said that Apple did not have an obligation to give him $100 store credit.
"I feel like it was worth $600 to begin with. It's replacing a camera, a phone, I carry my calendar, my emails, I get instant weather [reports]… everything including my iPod," McDonald said when asked about if he felt like he lost anything from losing an extra $100.
McDonald also said that since he needed a new phone and that he already had AT&T, he would have wasted the other $100 on something else he did not really need
Apple's Chief Executive Officer Steve Jobs announced the $200 price drop on Sept. 5, according to PC World. Because many early buyers were upset, Apple made a subsequent decision to offer $100 store credit.
However, according to Apple, the customer would have to have purchased the iPhone before Aug. 22 in order to be eligible for instant store credit. The credit is redeemable at Apple retail stores or the Apple online store.
PC World also said that the price reduction has resulted in a demand for the device from college students in particular.
According to PC World, SurveyU conducted a poll including 1,000 students, just hours after Jobs made his announcement. The poll found that before the price dropped, 80 percent of students wanted the phone compared with after when 90 percent wanted it.
In addition, students who planned to purchase an iPhone when their contract expires increased from four percent to 11 percent.
The iPhone has an exclusive contract with AT&T.
The survey also indicated that the number of students who planned on purchasing the phone within the next few months went from two to four percent and from zero to .5 percent for those who were going to buy the phone immediately.
Although the price decrease upset many early buyers, some people like 21-year-old Mt. SAC student Daniel McDonald said that it was absolutely worth $599.
"I like the fact that every morning I can check the weather, what it's going to be today," McDonald said. "I don't have to turn on the TV or do anything - it's automatically there."
McDonald also said that the Google Maps feature is something that he uses on a daily basis.
"I was really surprised," McDonald added. "You can punch in anything, the nearest Starbucks, anything you want! It gives you directions and it's nice not to have to print directions to a location."
With the Google Maps feature, it shows not just the directions on the phone, but it displays the phone number of the particular place you are looking for as well.
"I don't even know of a navigation system that can do that," McDonald said.
McDonald, who says that the phone has made his life easier, got the phone back in July. He was just thinking about buying it when he went into the store, and he needed a new phone anyway.
McDonald said that Apple did not have an obligation to give him $100 store credit.
"I feel like it was worth $600 to begin with. It's replacing a camera, a phone, I carry my calendar, my emails, I get instant weather [reports]… everything including my iPod," McDonald said when asked about if he felt like he lost anything from losing an extra $100.
McDonald also said that since he needed a new phone and that he already had AT&T, he would have wasted the other $100 on something else he did not really need
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