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Jobs Apologizes, Gives $100 iPhone Credit

By JORDAN ROBERTSON,

Posted: 2007-09-06 18:18:19

SAN JOSE, Calif. (Sept. 6) - Apple Inc. CEO Steve Jobs apologized and offered $100 credits Thursday to customers who shelled out $599 for the most advanced model of the iPhone, only to have the company unexpectedly slash the price $200 in a push to boost holiday sales.

Switched.com: In Jobs We Trust? | Engadget: Latest iPhone Buzz

In a letter on the company's Web site, Jobs acknowledged that Apple disappointed some of its customers by cutting the price of the iPhone's 8-gigabyte model and said he has received hundreds of e-mails complaining about the price cut.

But Jobs added that "the technology road is bumpy," and there will always be people who pay top dollar for the latest electronics but get angry later when the price drops.

"This is life in the technology lane," Jobs said.

Jobs' tone was less conciliatory immediately after the cuts were announced Wednesday, tartly rebuffing criticism about whether some of Apple's most die-hard fans would be miffed by the company's latest actions. In an interview with USA Today, Jobs was said iPhone owners who bought their device that morning "should go back to where they bought it and talk to them. If they bought it a month ago, well, that's what happens in technology."

Jobs then apparently had a change of heart. In his letter, he said the company is still making the right decision by lowering the iPhone price but needs to "do the right thing for our valued iPhone customers."

"(W)e need to do a better job taking care of our early iPhone customers as we aggressively go after new ones with a lower price," he said. "Our early customers trusted us, and we must live up to that trust with our actions in moments like these."

Jobs said Apple will hand out $100 credits for Apple's retail and online stores to iPhone customers who aren't eligible for a rebate. An Apple spokeswoman said the company did not have an estimate of how much the program would cost.

Customers who bought an iPhone within 14 days of the price cut can get a refund of the price difference if they have the original receipt.

The price cut - and the phaseout of the 4-gigabyte iPhone, which retailed for $499 - came less than 10 weeks after the two products hit the market June 29, angering early iPhone adopters who were startled to have their prized gadgets plummet in value.

Investors were also rattled by the news, sending Apple's shares down a total of more than 6 percent over the past two days, a drop that has wiped out about $8 billion in shareholder wealth.

Some worry that Apple is cutting the price to make up for waning demand, a concern Apple countered by saying the device is now affordable to more people and has the potential to be a blowout seller this holiday season.

Apple has said it's on track to sell 1 million iPhones by the end of the current quarter.

Apple's stock, after falling 5 percent on the news of Wednesday's announcements, fell another 1.3 percent Thursday to close at $135.01, or $1.75 lower than Wednesday's close.

Copyright 2008 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. All active hyperlinks have been inserted by AOL.

2007-09-05 09:59:10

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4519 comments

cgabriel510 06:13:02 AM Nov 21 2007

Report This!

Regardless of all of the contreversial isssues this phone has,
I'd still LOVE to have one!

IF they drop it down $200.00, I'd get one (Yeah, maybe in
about two or three years), LOL

CAG

cgabriel510 06:12:50 AM Nov 21 2007

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Regardless of all of the contreversial isssues this phone has,
I'd still LOVE to have one!

IF they drop it down $200.00, I'd get one (Yeah, maybe in
about two or three years), LOL

CAG

crzycaniac 12:21:07 PM Sep 19 2007

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the apple i phone can **** ** balls. it sux for the price

ilikechickin2 08:23:32 PM Sep 18 2007

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how do i get the refund?

RBernui 07:03:18 PM Sep 16 2007

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I would have preferred to buy my gaddget at the lower price to begin with. From past experiences I do not feel confortable with any pricy product that much too soon becomes unapgradable or junk. I dont mind spending continuos affordable upgrades. People look up to apple products, but if small irritants like this continues, Apple may not be the icon it is today!. On the other hand, the action taken by Mr Jobs in correcting at least partially the recentment expressed by many will soon wayne away.

csantoni03 05:25:00 PM Sep 11 2007

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http://www.the-billies.com

The Sidewalk Cafe
New York City
October 30 @ 8:30 FREE

stealthmeth 05:10:20 PM Sep 11 2007

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the only thing in the apple store for under a 100 bucks is the nano... YAY

quiet7wisdom 04:56:07 PM Sep 11 2007

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They've been riping us off since the early 90s!!! Why is Apple hot now-a-days? I go with ANYONE but them...and now I know why. This was a very capitalist move on their part! Maximize profit, thats all it's about! I can imagine what the executives at Apple discussed...this is an example of how the meeting probably wen: What...people? Screw them!!! So what if they spent WAY too much for a freakin phone... We need to catch Holiday sales...yeah...thats what matters!