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News
Woz Bags on iPhone Price Cut
Sunday, September 23rd, 2007 at 4:00 PM - by Jeff Gamet
Apple co-founder and technology legend Steve Wozniak recently called Apple to task for its sharp iPhone price reduction and the way the company has handled early adopter refunds. He felt that Apple dropped the price of its combination iPod and smart phone too much too fast, according to ITNews.
Apple dropped the price of the 8GB iPhone from US$599 to $399 only 68 days after the product launch. The company also discontinued the 4GB version of the phone. Mr. Wozniak commented "Nobody expects a product to drop that much in price in such a short time."
"The first adopters always pay a premium. I am one of them. I am used to that" he added. "But that one was too soon, too harsh."
After Apple dropped the price of the iPhone by $200, Apple CEO Steve Jobs responded to angry early adopters with an open letter stating that they would be eligible for a $100 credit at Apple’s retail and online stores. The procedure, however, requires that the iPhone has already been activated, and if the phone was given away, whoever is using the unit gets the store credit -- not the original purchaser.
"If I bought it and gave it as a gift they get the discount," Mr. Wozniak said. "Why don’t you just take my receipt and give me the money back? And of course it always comes back to Apple Store credit."
He estimates that he has purchased about 20 iPhones so far for himself, friends, and family.
Despite his disappointment with the way Apple handled iPhone pricing, Mr. Wozniak is pleased with the handheld device. He called it the first smart phone that takes a "human approach" to usability.
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