Log In | Register
15 Comments
PrintWhat is the real reason for the iPhone price cut (with poll)?
News Type: Opinion — Thu Sep 6, 2007 9:56 AM EDT
Live Poll
Why did Apple cut the price of the iPhone?
- Not Selling As Well As Expected28%
- Priced to compete with iPod Touch34%
- Preparing for iPhone 2.013%
- Steve Jobs is messing with fanboys13%
- All of the Above13%
Total Votes: 32
advertisement
I think the most unexpected thing to come out of Apple's press conference yesterday was the $200 price cut on the iPhone (bringing it down to much more reasonable price point in my book). At the very least it took me by surprise.
I've been trying to come up with reasons why they would cut the price after only 3 months. If this had happened in January I wouldn't be as surprised but 3 months - I'd almost be insulted had I bought one in June.
So I've been working on a couple of theories (all pure speculation with no data to back it up):
A) Sales are not going as well as expected
Could it be that the iPhone isn't selling as well as expected? Yes I remember in June we all heard about how well the iPhone sold in its opening days. That was of course fanboys and people caught up in the hype. How has it been doing after that initial rush though?. There is only so many people who are not currently lock into a cell phone contract other than AT&T. There are a lot people for whom AT&T is not a good option. I know that a lot of IT departments have said they are not allowing the iPhone on their networks. Finally - for a lot of people - $600 is a lot of money for a phone that plays music. Sure it reduces the number of devices in my pocket but honestly for a less than $100 I can get a phone and MP3 player. I could also get a MP3 phone that isn't as snazzy but does the job for less.
B) Keeping competitive with the iPod Touch
The new iPod Touch is in some ways going to be the iPhones biggest competitor. The 8GB model is to be sold at $299 and the 16GB model is to be sold at the same price as the iPhone at $399. Hmm.....twice the capacity, not tied to AT&T, and $200 dollars less (if they hadn't changed the iPhones price) would have made me rethink any plans I might of had of buying an iPhone.
C) Preparing for iPhone 2.0
As soon as the iPhone was released speculation began with what will be in iPhone 2.0. Although an excellent device a number of reviewers have acknoweleged that the iPhone is a 1.0 device with lots of room for improvement. Could it be they have dropped the price to prepare the way for a new iPhone (are at least an announcement) around January or February?
D) Steve just likes messing with the fanboys
Perhaps Steve just likes getting away with things that Bill Gates would be villified for. Maybe the day before he call up Wozniak (yes I know Woz is no longer affliated with Apple, but he is the only other name I know) and said "Hey Woz, watch this, I bet it really irks Bill". Perhaps with every blog post he reads defending the move he is laughin maniacallly and saying "yesssss, dance puppets dance".
E) All of the above
So there are my theories on the price cuts. What do you think?
15 Votes- Enjoy this article? Help vote it up the 'Vine.
Published to:
- FDBryant3's Column, All of Newsvine
- Groups: GeekVine, Newsvine Technology
- Regions: none
 | Apple - To all iPhone customers | Apple | Thu Sep 6 | 2 |
| What's Under the Hood of the Sleek and Sexy Apple iPhone? | The Apple iPhone, the latest mobile craze, is revo | Tue Sep 4 | 0 |
 | Don't Waste Your Money on the iPod Touch; Get an iPhone Instead | kevinb66 | Thu Sep 6 | 32 |
| New iPods disable TV-out functionality | MacNN | The Macintosh News Network | Fri Sep 7 | 1 |
| Putting $200 in Perspective: A History of iPod Prices | Brian Ford | Wed Sep 5 | 56 |
- Public Discussion (15)
- GeekVine
- Newsvine Technology
What's this?
Who's leading the conversation?
This visualization below allows you to see the impact that each user
has on the current conversation.
The top row contains the group of users who have had the most impact, the 2nd
row the group of users who have had the 2nd most impact (et cetera).
Users with similar impact are grouped together, and the average score of the group
is shown to the left of the group. The author of the article is also shown on the
left, in their corresponding group.
Each user's score is based on the number of comments the user has made plus the
number of votes their comments have received. The scores are calculated relative
one another, so while their absolute value is not particularly important, their
relative difference does indicate a larger difference in impact on the conversation.
15
6.3
5.1
{"commentId":1003254,"authorDomain":"fdbryant3"}
It certainly is an unexpected move. Personally I think Steve just likes messing with the fanboys (even if A, B, or C are more likely).
{"commentId":1003254,"threadId":"147261","contentId":"945323","authorDomain":"fdbryant3"}
- 2 votes
#1 - Thu Sep 6, 2007 10:01 AM EDT{"commentId":1005056,"authorDomain":"fdbryant3"}
{"commentId":1003362,"authorDomain":"eco-geek"}
I just think it would have been hard to justify the iPhone's price when you could get a similar product (iPod touch) for hundreds less. Given how cheaply you can buy phones these days, it's obvious that the phone portion can't be that expensive, so how else can you justify the cost?
{"commentId":1003362,"threadId":"147261","contentId":"945323","authorDomain":"eco-geek"}
- 3 votes
#2 - Thu Sep 6, 2007 10:40 AM EDT{"commentId":1003498,"authorDomain":"fdbryant3"}
{"commentId":1003494,"authorDomain":"gzirra"}
It's not A - they're going to sell their one millionth iPhone this month. One million in sales at $499 or $599 (or even $399)? Half a billion dollars isn't too shabby.
I'd say it's F) Because they're going to introduce the 16gb iPhone in the near future which will have a higher price point than the 16gb iPod touch. Say in the neighborhood of $499?
{"commentId":1003494,"threadId":"147261","contentId":"945323","authorDomain":"gzirra"}
- 6 votes
#3 - Thu Sep 6, 2007 11:14 AM EDT{"commentId":1003512,"authorDomain":"fdbryant3"}
{"commentId":1003522,"authorDomain":"onlineapps"}
F: They can afford to lower prices since the iPhone isn't really that expensive to manufacture. They need to since competition is starting to heat up.
{"commentId":1003522,"threadId":"147261","contentId":"945323","authorDomain":"onlineapps"}
- 6 votes
#4 - Thu Sep 6, 2007 11:21 AM EDT{"commentId":1003667,"authorDomain":"fdbryant3"}
{"commentId":1004465,"authorDomain":"spiffie"}
I think this is the most likely reason, although I think it might have been an unexpected event. Maybe materials costs turned out to be much less than originally expected or manufacturing was much more efficient (with fewer losses due to defects, etc.). It's hard to say, but I have a feeling Apple didn't originally plan to drop the price this fast; they just saw an opportunity present itself and took it.
{"commentId":1004465,"threadId":"147261","contentId":"945323","authorDomain":"spiffie"}
- 3 votes
{"commentId":1003674,"authorDomain":"mattschwartz"}
It's definitely not C. Apple never drops a price in preparation for an upgrade. They always upgrade the product and retain roughly the same price (with the upgrade replacing the older version).
I think it's the result of their entry into a new and ever-changing market. We're already hearing about new competing products that will borrow interface and other ideas from the iPhone. I think Apple just wasn't expecting such a fast response from competitors.
Plus there could be a private monetary offer by AT&T who may be wishing for many more customers than they've gotten so far.
{"commentId":1003674,"threadId":"147261","contentId":"945323","authorDomain":"mattschwartz"}
- 4 votes
#5 - Thu Sep 6, 2007 12:02 PM EDT{"commentId":1003920,"authorDomain":"fdbryant3"}
{"commentId":1003912,"authorDomain":"pavilhao9"}
I agree with Matt. I answered yesterday, either here on on a blog on the same topic, Apple may be anticipating the gPhone from google, or some similar product, and they are doing now before it is done unto them.
Cheers,
P9
{"commentId":1003912,"threadId":"147261","contentId":"945323","authorDomain":"pavilhao9"}
- 2 votes
#6 - Thu Sep 6, 2007 1:29 PM EDT{"commentId":1004046,"authorDomain":"onlineapps"}
See, the problem with the gPhone is that Google has real close ties with Apple. Especially since a few Google apps have been optimized for the iPhone and included on it (like Maps). Why break them all of a sudden?
{"commentId":1004046,"threadId":"147261","contentId":"945323","authorDomain":"onlineapps"}
- 4 votes
{"commentId":1004062,"authorDomain":"jordanrivas"}
The real reason for the price cut? World domination. Apple want's an iPhone in the hands of every person, on the planet.
{"commentId":1004062,"threadId":"147261","contentId":"945323","authorDomain":"jordanrivas"}
- 5 votes
#7 - Thu Sep 6, 2007 2:24 PM EDT{"commentId":1004215,"authorDomain":"capran"}
I'd like an iPod, but even $400 is too much. Plus, I like T-Mobile prepaid. $60/month for phone service is way too much for me.
{"commentId":1004215,"threadId":"147261","contentId":"945323","authorDomain":"capran"}
- 1 vote
{"canLink":false,"threadId":"147261","isPrivate":false}
You're in Easy Mode. If you prefer, you can use XHTML Mode instead. |
As a new user, you may notice a few temporary content restrictions. Click here for more info.
Start Tracking
Stop TrackingCOMPANY STUFF:
LEGAL STUFF:
- © 2005-2009 Newsvine, Inc. |
- Newsvine® is a registered trademark of Newsvine, Inc. |
- Newsvine is a property of
