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News
Apple Sued Over iPhone Price Cut
Monday, October 1st, 2007 at 4:00 PM - by Jeff Gamet
Apple is facing yet another law suit over the iPhone, but this time it’s over the surprise price cut the company sprang on customers in early September. Dongmei Li, a New York woman that’s hopping mad about the US$200 price reduction, filed a suit against Apple and AT&T on September 24 alleging price discrimination, according to Forbes.
In addition to claiming Apple violated New York price discrimination laws, the suit also alleged that early buyers were given less favorable purchase terms, and that the price reduction injured early purchasers because now they can’t resell their iPhones for the same profit. Ms. Li bought her 4GB iPhone when Apple originally released the combination iPod and smart phone at the end of June.
When Apple first released the iPhone, it was available as a 4GB model for $499, and an 8GB model for $599. After about two months, Apple dropped the 4GB model and reduced the price of the 8GB version to $399.
Apple CEO Steve Jobs apologized in an open letter to angry early buyers and offered a $100 credit at the Apple Store.
Apple and AT&T declined to comment on the case.
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