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News
Jobs: iPhone Price Cut to be Aggressive
Wednesday, September 5th, 2007 at 4:00 PM - by Jeff Gamet
Analysts and consumers have been questioning Apples Wednesday US$200 price reduction for the iPhone. CEO Steve Jobs has an answer: To aggressively go after new customers during the holiday buying season, according to The New York Times.
"Its very clear we have a breakthrough product on our hands, but its also clear that many can afford it, some cant," Mr. Jobs said. "Wed like to make it affordable to even more folks going into this holiday season."
He added that Apple is a high-volume manufacturer and has a knack for reducing costs.
Not everyone, however, is buying Apples stance. Gartner Group analyst Van Baker commented "My suspicion is that they got to 750,000 really quickly, and then it started to slow down."
Despite the public doubts, Apple executives contend the lower price was part of the companys grand plan and brings the combination iPod and smartphones cost inline with the new iPod touch that was announced yesterday. The iPod touch closely resembles the iPhone and is available in an 8GB model for $299, and 16GB for $399. In comparison, Apple now offers only the 8GB iPhone, and it is priced at $399.
Regardless of analyst and consumer sentiment, Apple may be showing a stronger face now, and Mr. Jobs seems just fine with that. "Were feeling like being more aggressive," he said.
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