Okay, Now It’s Time To Buy An iPhone

Apple surprised some people yesterday by slashing the price on its iPhone by $200. The 8 gig model will now sell for $399, making it far more attractive to a wider group of mobile users. Steve Jobs also said Apple will stop selling the 4 gig model, as most consumers are opting for the device with more storage capacity.
new iPod Touch
In other Apple news, the iPod is looking more like the iPhone with a new touch screen. It also comes with Wi-Fi so users can connect to a new iTunes Wi-Fi store to download songs directly to their music players without having to connect to a computer.
In tandem with the new product, Apple said it agreed with Starbucks Corp. to let users buy music from the iTunes Store on free wireless connections in Starbucks cafes. Users won’t have to pay a wireless connection fee to shop in the iTunes store, which they currently must do when accessing iTunes from a Starbucks. The deal also applies to Mac, iPhone and personal-computer users.
Starbucks plans to begin the service in October at 600 cafes in New York and Seattle, adding service gradually in other locations throughout next year. Starbucks Chairman Howard Schultz said, “The big payoff is the sense of discovery that will exist.”
[via The New York Times and The Wall Street Journal (paid sub. req.)]

About David Burn

Co-founder and editor of AdPulp. I wrote my first ad for a political candidate when I was 17 years old. She won her race and I felt the seductive power of advertising for the first time. I worked for seven agencies in five states before launching my own practice in 2009. Today, I am head of brand strategy and creative at Bonehook in Portland, Oregon.


  1. Is it just me or does it seem like Apple is screwing over their most loyal, diehard consumers with this? You know, the people who stood in line and made the debut such a success.

  2. You mean people like me?
    Actually, I wasn’t pissed about this at all. Apple always pulls stuff like this. It would’ve been much worse if they’d come out with an updated, improved iPhone only 2 months after the intro. Just dropping the price is something everyone anticipated–or should have.
    I was really pissed when I bought a Powerbook early last year right before the Intel MacBooks came out. But technology is a never ending cycle. Things always get better, faster and cheaper.
    And the phone is way cool. Even for $600.

  3. Oh, and Steve Jobs just posted a letter on the apple.com website offering a $100 credit for all iPhone owners good for merchandise at the Apple Store.
    Now that’s a classy move.

  4. I don’t know if he really had a choice. It would have a been a public relations nightmare if he didn’t offer up something.

  5. Wow. Apple just screwed a whole lot of people.
    1. Apple just punished all of its early adopters. I guess people won’t be lining up to be the first to buy the next overpriced gadget.
    2. Anyone who lined up to pay $600 to be the first to own a hyped-up cell phone deserves the $200 idiot tax.
    Either way you look at it, Apple just lost some major style points with that (either greedy or callous) little stunt.
    I’m glad to see that folks find ways to rationalize the idiot tax by finding lame excuses for Apple’s unforgivable tactics.

  6. olivier,
    it’s a safe bet that jobs is losing zero sleep (and zero dollars) over your rants. as danny demonstrates, most early adopters knew the deal. or lack of a deal. it’s par for the early adopter course. the ones actively complaining are only proclaiming their own stupidity. all technology inevitably drops in price. $200 was the cost for being first on the block.

  7. I certainly don’t consider people who lined up for an iPhone to be idiots. They got access to a great product before anyone else did. But I do question Apple’s thinking. Did they know they were going to drop the price this much this soon? Or did they just come to realize that sales were going to drop off quickly if they didn’t? It seems like they didn’t put much thought into the release. And I do agree that next time Apple comes out with a great new product, there will be fewer people waiting in line when the doors open after this miscue.

  8. It was probably thought out beforehand. At the same time, certain factors may have contributed to the acceleration. For example, other wireless providers are set to launch iPhone wannabes. Plus, Apple is poised to introduce the iPhone Nano during the holidays. It was probably a combination of competitive and internal factors.

  9. HJ,
    I know that you guys marketing, advertising, and business people would all like to figure that out. Probably a few psychologists and cognitive therapists, too.
    Cause everybody wants to be like Mike, or Steve, or Pete and Pete for that matter.
    I still love my Mike Phelps quote which I’ll adapt to the situation:
    I don’t want to be the next Steve Jobs, I just want to be the first [insert name of CO genius].
    Doesn’t anybody care that on stage at this Stevenote, Steve looked more happier. There was more spring in his step. Instead of all the analysis I think that’s a good thing to leave it at that.

  10. Early adopters are prepared to pay the price of admission. It’s their badge of courage. I am not an early adopter, which is why I’m headed to the Apple Store later today.