Sun Runner: Apple iPhones (no BJ)

[Sun Runner]

Sorry Parker .. I couldn't resist. (OK, I could have resisted, I just I didn't want to resist; and the only people reading the 'computing page' anyway are the nerds.)



What a classic PLOPPY move on Steve Jobs part. (The only reference here to BJ by the way.)

First he gets his "valued iPhone customers" (translate ViP) to stand in line for days to pay double retail for an overpriced cell-phone, then, a month later allows their neighbor to go buy one for $200 off, then, "after personally reading hundreds of emails" he decides to send his ViPs a $100 credit memo.

Classic.

'Gee thanks Steve. Let's see now, compared to my neighbor that bought his today, you still have $200 of my money in your pocket and you just gave me $100 of more overpriced crap I didn't want in the first place.'

Apple's stock dropped 5% and his customers are still pissed off.

(He could have only botched this worse by making the credit memos go through the same grinder that rebates have to go through. Maybe he will; the detail are still to follow!)

[Norm Wattenberger]

As it happens I was talking about this to my GF just before reading this. It is funny that he's giving a $100 credit for a store that has so few items most recipients have already bought the one product they are likely to buy in the near future

OTOH; how does one ever dramatically reduce a price without pissing off past buyers? The only way is to tell people in advance that you will drop your price in the future. But that enormously reduces your flexibility, signals your competitors and can ruin your manufacturing plans.

(and the only people reading the 'computing page' anyway are the nerds.)

OK, I'm going to have to start telling some of my old stories

[Sun Runner]

> .. (and the only people reading the 'computing page'
> anyway are the nerds.) OK, I'm going to have to start
> telling some of my old stories.

Not about me I hope. I'd like to admit right now, I'm not a nerd, not I do qualify as a dork from time to time.

> OTOH; how does one ever dramatically reduce a price
> without pissing off past buyers?

How about not gouging in the first place. Yea $200 cell phone prices decline dramatically after a while but this was a $600 something else.
And at least Motorola waited a respectable amount of time before dropping the market out of the RAZR.

Here is an outside the box idea for Apple -who made it's sterling reputation with all those ViPs by living out there -refund 'em all $200 cold hard cash.

Yes, absolutely, they can afford it.

Say they sold a million at $600. Refund $200 a piece and your out $200 million. Big deal; thats less than 30 days of net net income for those guys -one months profit.
I think their balance sheet carries about $7 BILLION in cash. Yes, they've got some payables but I think they are about $12 BILLION liquid. They have $13 BILLION in net worth!

$200 million? It's pocket change. And every customer they ever had isn't now looking at them like they do their degenerate uncle Larry.

Had they done that, their stock might have still dropped, but you talk about a loyal customer base and unbelivable positive spin -it would be an Apple kind of thing to do. And it might make the rest of us who never owned Apple but think they want to -not think about it so hard now.

Even us MS computer 'dorks' don't like getting price gouged. [ Yes, yes, yes I know, we have been getting it, all along. but we were never loyal to anyone in the first place, they just make it so darned inconvienent to switch.]

[Norm Wattenberger]

when you consider people that bought houses recently only to have the bottom fall out of the market.

Of course it can work both ways

"You may buy a hat for 500 marks today and it may be worth 700 marks tomorrow. So you.. perhaps, will feel a little of schadenfreude at the expense of the vendor who sold it to you a day too soon."

-Glasgow Herald 1922

[Sun Runner]

.. and I really don't care all that much about those Apple geeks anyway. Probably neither does Jobs. He knows they'll stand in line to by the iNEXT anyway.



> Of course it can work both ways
> "You may buy a hat for 500 marks today and it
> may be worth 700 marks tomorrow. So you.. perhaps,
> will feel a little of schadenfreude at the expense of
> the vendor who sold it to you a day too soon."

> - Glasgow Herald 1922

Great quote.

[Daily Dubble]

> 'Gee thanks Steve. Let's see now, compared to my
> neighbor that bought his today, you still have $200 of
> my money in your pocket and you just gave me $100 of
> more overpriced crap I didn't want in the first
> place.'

and I don't think there is much you can actually buy for $100 in an apple store, either! So you will have to spend MORE to use the credit.

[Norm Wattenberger]

You can buy replacement earphones - as they tend to fail.

> and I don't think there is much you can actually buy
> for $100 in an apple store, either! So you will have
> to spend MORE to use the credit.