Yesterday afternoon Ted Como sent me an email with the subject heading ‘Don’t they piss you off?” They did.

For the first time ever, I was offended by Apple. After evangelizing their products for more than 20 years now, I thought…albeit a moment, to never buy another product again.

Open Letter from Jobs

At first I couldn’t believe it. I read it over and over again. I knew there was an Apple ‘Special Event’ planned, but had no idea that Steve Jobs would announce a $200 price cut on the phone I stood in line for less than 2 months ago and paid $599 – proud to be an early adopter.

Oh, I love my new iphone, but it really honked me off. When I got home, I immediately visited the Apple website to watch Jobs explain the motive on the keynote address at the Apple website.

An Apple special event always packs it’s own brand of drama and the hour long tech presentation sure introduced some sexy new hardware. My glands were salivating…again, but how could they stick it to me on my new phone? Near the end of the event, Jobs announced they were getting ready for a price drop and for some reason, the audience gasped and applauded the news, but if I was there, they probably would have heard a big – “Hell No!”

Sure, it’s silly to get that worked up over something so trivial and today wasn’t much better, but when I got home today, I was swapping channels across the evening news and Brian Williams on NBC broke a story with the graphic in the background that read “Ipology.” I had seen a few derogatory blog posts about the Apple move overnight, but my day was a bit more stressful for me to watch the aftermath from the announcement.

Evidently, Steve Jobs and Apple were slammed with negative reaction to the announcement the day before (there is a God). My anger though soon turned to a renewed warm glow of respect. On top of that, I ordered a new Apple 23 Cinema Display just for good measure and a monetary hurrah! Besides, I got a $100 discount!

Oh. I understand the $100 loss, that’s good business. Play on Apple. This one has to go down in the playbook of cool.

According to Jobs;

To all iPhone customers:

I have received hundreds of emails from iPhone customers who are upset about Apple dropping the price of iPhone by $200 two months after it went on sale. After reading every one of these emails, I have some observations and conclusions.

First, 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. It benefits both Apple and every iPhone user to get as many new customers as possible in the iPhone ‘tent’. We strongly believe the $399 price will help us do just that this holiday season.

Second, being in technology for 30+ years I can attest to the fact that the technology road is bumpy. There is always change and improvement, and there is always someone who bought a product before a particular cutoff date and misses the new price or the new operating system or the new whatever. This is life in the technology lane. 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. The good news is that if you buy products from companies that support them well, like Apple tries to do, you will receive years of useful and satisfying service from them even as newer models are introduced.

Third, even though we are making the right decision to lower the price of iPhone, and even though the technology road is bumpy, we need to do a better job taking care of our early iPhone customers as we aggressively go after new ones with a lower price. Our early customers trusted us, and we must live up to that trust with our actions in moments like these.

Therefore, we have decided to offer every iPhone customer who purchased an iPhone from either Apple or AT&T, and who is not receiving a rebate or any other consideration, a $100 store credit towards the purchase of any product at an Apple Retail Store or the Apple Online Store. Details are still being worked out and will be posted on Apple’s website next week. Stay tuned.

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.


Steve Jobs
Apple CEO

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