iPhone price cuts dial up blood pressure

Alex Zaharov-Reutt
Thursday, 06 September 2007 23:18

Your IT - Mobility

So, the iPhone has dropped in the US by US $200, surprising many who had only recently just purchased the 8GB iPhone at the previous full price and leading to some rebates and questions over the iPhone’s pricing strategy.

It’s ironic in a way, Apple is dropping the price of their technology, and as a result, people are complaining! But what’s shocked most people is the amazing speed with which the price cuts have appeared, causing some to wonder how solid iPhone sales are and how strong the deal is with AT&T.

Research firm iSuppli suggested that Apple might not have been on track to see iPhone sales hit 10 milion worldwide by the end of 2008.

Given the reports of a 100% profit margin on each iPhone when it retailed for US $499 and $599, the iPhone is now, or at least should be, available to a much wider range of people.

 Apple certainly had plenty of wiggle room to work with when crafting the iPhone deal, and now the consequences of some of those decisions are being experienced today.

iPhone buyers who have purchased their new iPhone over the last two weeks can apply to Apple for rebate. Those who purchased an iPhone earlier have missed out and have simply made a purchase at what was the recommended retail price at the time, and given that no-one was under any obligation to buy at any stage, iPhone's getting cheaper is a great development.