More affordable iPhone, Jobs Open Letter

Another little tiff that has many consumers hot under the collar is the slashing of the iPhone’s price in the US – $399, down from $599 when it was released two months ago.

Apple has dropped the 4GB model completely, citing lack of demand.

Many iPhone buyers who wanted to be some of the first were understandably annoyed at the sudden and drastic drop, and many demanded compensation.

Steve Jobs himself responded with an open letter, giving iPhone customers $100 store credit for the Apple online store.

Justifying the drop, Jobs said:

I am sure that we are making the correct decision to lower the price of the 8GB iPhone from $599 to $399, and that now is the right time to do it. iPhone is a breakthrough product, and we have the chance to ‘go for it’ this holiday season. iPhone is so far ahead of the competition, and now it will be affordable by even more customers.

The technology road is bumpy. If you always wait for the next price cut or to buy the new improved model, you’ll never buy any technology product because there is always something better and less expensive on the horizon.

We want to do the right thing for our valued iPhone customers. We apologize for disappointing some of you, and we are doing our best to live up to your high expectations of Apple.

He does have a point there – you have to expect the price of technology to drop, and drop hard within a short timeframe.

A one-third drop though? That’s pretty steep, but Jobs is being generous.

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