It should be no surprise that Apple's announcement to cut prices, and their corresponding announcement to give a credit to the early buyers of the iPhone, has prompted a lot of conversation, both on- and off-line. I've received several questions and comments to my previous post about this. I thought one response should be shared. Here it is:
From the reader:
1) as an early iphone adopter, how did you react to the quick price cut?
2) as a marketing expert, how do you rate Apple’s refund/credit offer and communication from Jobs?
Here's my response:
Interesting you asked.
There was a pang of disappointment when I heard the announcement, though I have to admit I wasn't surprised. It happened a little faster than I had expected, but I knew they were either going to come out with a new model (that could do more things) or they were going to cut the price. I'm happier they cut the price.
The credit/communication from Jobs was pretty well done. I know that he got banged on for ignoring it on day 1, but the letter was written in a respectful manner. I don't think that customers begrudge businesses doing things that are in the business's interest - we just wanted to be treated with respect, forthrightness and honesty (and if you want to throw us a few bucks - all the better).
People are saying that the cut is teaching customers to wait for the price cut - this is advice that demonstrates a lack of understanding of what early adopters are (and remember, everything is situational, I'm not an early adopter in everything (just gadgets :-)), for example, I still don't trust VOIP). Early adopters want to adopt early - we don't care what the price is. We want it to have it. (Look, I paid $800 for my first cell phone).