Friday, September 07, 2007
The unofficial motto for Apple should be "Great products at a not so great price." Apple bit the hands that feed the company's profits by revealing that the company knows no bounds in extracting the maximum out of cash from its core audience. Offering a $100 credit to overpay for more Apple products only further iRritated customers. The WaPo's Eugene Robinson nailed itin summarizing Apple's botched iPhone marketing strategy.
This time, though, he has failed to live up to one clause in his implied contract with iPhone buyers. The sky-high price was supposed to guarantee a decent period of exclusivity. For a time, if you bought an iPhone, you were supposed to be the envy of your friends. The ability to show off all the neat things it could do was your compensation for the fact that the iPhone didn't really change your life.
Apple customers are happy to iPay and wait in line (like Harry Potter fans) to be able to brag to friends that they were one of the first to buy (like my friend Michael), but the $200 reduction in price less than two months after it went on sale just makes them look silly. Apple should have had a better plan to phase in subsequent models of the iPhone, but at least it is now painfully obvious that the company likes to take advantage of customers by charging a ridiculous premium. Maybe the iSheep won't follow herder Steve around so closely anymore.