Apple cuts 8GB iPhone price to $399

With the new heat the iPhone will be getting from the iPod Touch, Apple decided to lower the barrier of entry to a much more palatable $399, and that's for the 8GB model, which just yesterday was rocking at $599 pricepoint. It also looks like Apple is doing away with the 4GB version, which was seriously lagging behind its big brother in sales, but there's no official word yet.

[Sam @ Sep 5th 2007 8:17PM]

You're wrong on the technology front though...show me another phone with software like the iPhone. Yeah, you're wrong.

[rudebo @ Sep 5th 2007 8:22PM]

face it .. apple doesnt make gadgets, anything...
it markets and sells you your self esteem

[Tony Flags @ Sep 5th 2007 8:26PM]

What Steve did today is the reason why there are companies like Microsoft with so much sucess: Because there are others that think just because they have some hot piece of tech going on the can screw up their customers. One day Apple is going to run out of juice and the competition will, and they will, catch up and beat them at their own game.
You should never screw your customers Steve...

[henjin @ Sep 5th 2007 8:27PM]

One of the sadder moments. This is a huge cut for anyone who bought an iPhone. You would expect prices to be roughly the same until just before the Thanks Giving.

AT&T must be ready to hit Jobs, no one is going to keep their iPhone if they bought it within the 30-day trial period. Clearly with the Touch iPod coming in 2 weeks and this price cut that Apple is indeed not meeting its own targets for iPhone sales. A lot of hardware idle until today.

Short Apple stock and buy it back make a lot of money. Apple is the best but the worst at treating its increasing customer base with respect.

Anyway I'm waiting to buy a MacPro later this year before anyone thinks I hate Apple or one dollar Jobs.

[AlexJ @ Sep 5th 2007 8:29PM]

To everyone bitching about the price drop, it happens. Especially in the tech world. I've heard everywhere that people should wait a bit to get the iPhone. Instead, people rushed out to get it.

$600 is way too much to pay for a phone. Hell, 400 is still a little too much, but it's a bit more managable.

All in all, I'll probably end up gettin the Touch because I can get better phones for cheaper prices

[Tony Flags @ Sep 5th 2007 8:32PM]

I guess by then AT&T will be doing free unlockings and Apple will be paying you to get an iPhone...

[Newsom02 @ Sep 5th 2007 8:35PM]

Some of you got your $200 out of prancing around saying "look what I got."

[Tony Flags @ Sep 5th 2007 8:37PM]

Apple iPhone Price Build Up Report
(By Steve)

Iphone Cost, Ex-Store: $200
Profit, 1st 45 days: $200
Early Adopters Fxck-U Tax: $200
Total Price: $600

[Tony Flags @ Sep 5th 2007 9:00PM]

So let me get this straight...

Steve releases overhyped, overpriced $600 iPhone.
Customer forks up $600 bucks.
Customer forks up $120 in activation and service fees to AT&T. Apple gets its share from activation.
7 guys nobody knows offer Soft-Unlock to help customers.
Customers wait for code to unlock $720 phone.
AT&T get it their way by threatening to sue.
7 guys sell unlock licences to wholesalers at $1,800 minimums.
Customers still wait for unlock software.
Apple fxcks customers by reducing $200 price tag.
Unlock never comes.
Apple releases $300 video ipod.
Customers are left with a $720 iphone that does nothing more than the $300 video ipod.

Thanks Steve... I guess you had it all figured out from the get go...

[crusadernm @ Sep 5th 2007 9:02PM]

Is there any doubt now that Apple puts a higher premium on its products than any other tech company. I hope you now see the light Apple fans.

[Bob @ Sep 5th 2007 9:09PM]

Apple's predator phone pricing is brilliant, allowing many less financial secure individuals to obtain an awesome phone and for Apple to capture market share. As for my iPhone costing me $200 more than todays price, well not only has it been very useful but also a joy to use these past couple of months and I feel well worth the price I paid. I can't wait to see Apple's future products, but what is available today is stunning and I'm making good use of them.

[Keith Tsang @ Sep 5th 2007 10:18PM]

I'm a iPhone owner, who bought on the second day. Apple clearly isn't selling as many iPhones as they want to or else they would have not dropped the price.

It's simple supply and demand. If you want to increase demand, you lower the price. The very fact that they need to increase demand says that they are not selling as many iPhones as they need to be. The stock markets bore this out be devaluing the stock 5%, quite a bit in one day. The iPhone's price being lowered this much this early is an ominous sign, as evidenced by how the market interpreted the news.

There's no doubt what Apple did is very bad PR, otherwise you wouldn't have so many pissed off people and so many people fairly happy to laugh at them for being Apple fans. Whether or not early adopters got screwed or what they deserved isn't really the point. Bad PR for a company so very dependent on PR and word of mouth is not smart.

My bets are that Apple was forced to make such a big price cut so early. If they didn't, the iPhone may have been at risk to be a failed product and a failed iPhone doesn't do any early adopters any good. However since this won't quell the public outrage, it would be smart of Apple to do something meaningful (a $50 dollar iTunes store credit would be insulting) for it's most vocal and active customers who are a very cheap and probably highly profitable form of PR.

[Bob @ Sep 5th 2007 10:44PM]

Keith Tsang says:

"Apple clearly isn't selling as many iPhones as they want to or else they would have not dropped the price."
But hasn't Apple met their declared sales objectives? Furthermore, they are the sales leader in the smart phone category.

"Pissed off customers"
Yep, true there are many, but a significant number of the vocal posters here don't even have iPhones.

"Bad PR for a company so very dependent on PR and word of mouth is not smart."
I've been telling friends about the new amazing price they can get an iPhone at.

I don't tend to get worked up over or place much value on these blogs, as it appears do others.

So we have different opinions.

[alanjromero @ Sep 5th 2007 9:45PM]

FANBOY TAX!

[Den Lim @ Sep 5th 2007 10:13PM]

If you bought one just before this announcement, oops.

[Keith Tsang @ Sep 5th 2007 10:21PM]

I'm a iPhone owner, who bought on the second day. Apple clearly isn't selling as many iPhones as they want to or else they would have not dropped the price.

It's simple supply and demand. If you want to increase demand, you lower the price. The very fact that they need to increase demand says that they are not selling as many iPhones as they need to be. The stock markets bore this out be devaluing the stock 5%, quite a bit in one day. The iPhone's price being lowered this much this early is an ominous sign, as evidenced by how the market interpreted the news.

There's no doubt what Apple did is very bad PR, otherwise you wouldn't have so many pissed off people and so many people fairly happy to laugh at them for being Apple fans. Whether or not early adopters got screwed or what they deserved isn't really the point. Bad PR for a company so very dependent on PR and word of mouth is not smart.

My bets are that Apple was forced to make such a big price cut so early. If they didn't, the iPhone may have been at risk to be a failed product and a failed iPhone doesn't do any early adopters any good. However since this won't quell the public outrage, it would be smart of Apple to do something meaningful (a $50 dollar iTunes store credit would be insulting) for it's most vocal and active customers who are a very cheap and probably highly profitable form of PR.

[tremans @ Sep 5th 2007 10:34PM]

Q&A with Jobs: 'That's what happens in technology'

http://www.usatoday.com/tech/products/2007-09-05-jobs-qanda_N.htm

well... there ya go.

[Mat P @ Sep 5th 2007 10:38PM]

@ Admiral:

true, its great for an unsubsidized price....

but why is it that I'm expected to pay full price, and still be stuck in a contract?

[Coleman Foley @ Sep 5th 2007 10:39PM]

people are gonna buy it like crazy now

[Tommy W. Lee @ Sep 5th 2007 10:59PM]

i just got back from my apple store with my 13 day old iphone. $209 price adjustment, no questions asked. oh god i love life.

[Matt C. @ Sep 6th 2007 7:03AM]

What - no stereo bluetooth? Apple - where is the stereo bluetooth - I was seriously thinking of getting an iPhone, but without the stereo bluetooth I'm going to get a Sony Ericsson cell phone and call it good. No iPhone for me until there's stereo bluetooth support!

[maria @ Sep 6th 2007 8:25AM]

The keyboard sucks (try having to input a password with symbols, letters and numbers). The phone can't do anything (no excel, word...). The phone can't play wmv, flash... videos on the internet. What you have is an ipod with a phone and fansy smansy web browser. If you are blindly in love with apple, it is "revolutionary." If you are not, it is mosly a high priced glitzy product that you really don't need.

[USGOVMT. @ Sep 6th 2007 9:05AM]

OH MY GOD OH MY GOD OH MY GOD!!!!!!!!!!!!!!!!!!!!!! I HAVE TO HAVE IT! ITS A STEAL! ID SPEND OVER 800 DOLLARS UNLOCKING IT ANYWAY!!!!!!!!!1

[Todd @ Sep 6th 2007 9:10AM]

If you bought a 4 gig iphone within the last 10 days, call Apple tonight. They're all out of 4 gig refurbs, but I guess they were selling for $149, so I just got a $249 credit to my CC per Apples price protection program. "Should Apple reduce its price on any shipped product within 10 days, call and request a refund or credit for the difference"...kinda paraphrased, read the real deal on thier site, DO IT, DO IT NOW!!

[tassypoo @ Sep 6th 2007 9:56AM]

Thats cool

[vsm91 @ Sep 6th 2007 11:12AM]

I feel totally taken by Apple. I'm a huge and loyal user....and they couldn't even wait a few months for a major price drop.
We've been totally taken advantage ofl.

[vsm91 @ Sep 6th 2007 11:14AM]

I've been a loyal apple customer....but a $200 drop in price w/in one month of buying it???
I feel totally ripped-off.
My experience in the past has always been they drop the price when they introduce a new model of the same item.
I want my $200 refund Mr. Jobs.

[darkshark @ Sep 6th 2007 11:50AM]

¿Ya no sabes que hacer con tu iPhone? Cámbialo por algo mayor o mejor o Véndelo en: mayoromejor.com

[Terry Freedman @ Sep 6th 2007 12:31PM]

While it is normal to expect electronics to get better and cheaper over time, the iPhone price decrease is quite another thing. Jobs, in response to analyst charges that the drop indicated a signifiant softening in product demand, was quoted in this morning's NY Times stating that this price drop ws in the wokrs originally. If that's the case, Apple has a customer relations issue of enormous magnitude to resolve. While no one can reasonably expect Apple to refund the $200 price difference outside the 14 day return period, an appropriate gesture to other early adopters would be to provide them with a $200 voucher good an any Apple branded purchase made in the next 12 months.

[JPerez @ Sep 6th 2007 2:04PM]

GET THE LATEST INFO & LET APPLE KNOW HOW YOU FEEL!!

www.igotiphowned.com/

[1Audioman @ Sep 6th 2007 2:15PM]

From a business standpoint, If I were Steve, I'd make some type of gesture (voucher or store credit) to "save money".

SAVE MONEY:

1. The cost of time spend by Apple Representatives fielding calls on this issue. Let them get to "real" work.
2. The loss of future revenue from customers who just won't forget!
3. The loss of potential customers who may have considered Apple products, but now are not interested in "dealing" with Apple
4. The cost of BAD PRESS

I think you get my point!

And yes, I'm 15 days out! Only 10 days activated ! And yes, I own 10+ current Mac Models.

However, the iPhone is a great product. I'm happy with it.

[iPhone Chump @ Sep 6th 2007 3:00PM]

STEVE JOBS - F*#K YOU! "If they bought it this morning, they should go back to where they bought it and talk to them," he said. "If they bought it a month ago, well, that's what happens in technology."

I'm a loyal Apple customer and stock holder - I've owned Mac's since 1990 and I have to say this is the most disgusting thing I've ever seen. He's quote speaks to pure greed. Apple (or should I say Steve Jobs), should apologize for this incident and give us our $200 back, even if its a store credit. If there is one way to lose customer loyalty, its to make them feel robbed or unappreciated. Lets be honest - our raving about the phone has lifted beyond even what Apple anticipated in sales. For a company that I thought could do no wrong, this is an unbelievable low blow. I'm shocked and appalled.

[Michael @ Sep 6th 2007 4:17PM]

Now what is apple going to do with all the 4gb iphones that have not been sold yet???

[G @ Sep 6th 2007 5:29PM]

To all iPhone customers:

I have received hundreds of emails from iPhone customers who are upset about
Apple dropping the price of iPhone by $200 two months after it went on sale.
After reading every one of these emails, I have some observations and
conclusions.

First, I am sure that we are making the correct decision to lower the price
of the 8GB iPhone from $599 to $399, and that now is the right time to do
it. iPhone is a breakthrough product, and we have the chance to 'go for it'
this holiday season. iPhone is so far ahead of the competition, and now it
will be affordable by even more customers. It benefits both Apple and every
iPhone user to get as many new customers as possible in the iPhone 'tent'.
We strongly believe the $399 price will help us do just that this holiday
season.

Second, being in technology for 30+ years I can attest to the fact that the
technology road is bumpy. There is always change and improvement, and there
is always someone who bought a product before a particular cutoff date and
misses the new price or the new operating system or the new whatever. This
is life in the technology lane. If you always wait for the next price cut or
to buy the new improved model, you'll never buy any technology product
because there is always something better and less expensive on the horizon.
The good news is that if you buy products from companies that support them
well, like Apple tries to do, you will receive years of useful and
satisfying service from them even as newer models are introduced.

Third, even though we are making the right decision to lower the price of
iPhone, and even though the technology road is bumpy, we need to do a better
job taking care of our early iPhone customers as we aggressively go after
new ones with a lower price. Our early customers trusted us, and we must
live up to that trust with our actions in moments like these.

Therefore, we have decided to offer every iPhone customer who purchased an
iPhone from either Apple or AT&T, and who is not receiving a rebate or any
other consideration, a $100 store credit towards the purchase of any product
at an Apple Retail Store or the Apple Online Store. Details are still being
worked out and will be posted on Apple's website next week. Stay tuned.

We want to do the right thing for our valued iPhone customers. We apologize
for disappointing some of you, and we are doing our best to live up to your
high expectations of Apple.

Steve Jobs
Apple CEO

[rks @ Sep 6th 2007 6:23PM]

Just got back from an AT&T store. I bought my 8GB on 8/24. Anyone who bought it within the last 14 days will receive a credit = to $200 plus refunded tax applied towards a future bill. Not the next bill, but the one after that.

Eh, same as cash for me. Piss off Steve Jobs. You sunk your stock 5% today.

[dan @ Sep 7th 2007 12:09AM]

I think if Apple is going to burn early adopters like this it will bite them in the ass the next big product launch they have. They really need to reach out, either offer free applecare and or apple credit that could be used toward another product. I had been thinking about picking up a MacBook Pro when Leopard comes out but will definitely be looking elsewhere (HP, Dell, Sony) after getting burned like this. Apple needs to think really hard about protecting the core.

[AP @ Sep 7th 2007 3:49PM]

@Jason Carroll

same here!!
i also fall on the 15th day.

[Tony M. Pham @ Sep 9th 2007 3:21AM]

I think why Steve Jobs lowered the pricing of the Iphone itself because they have recently found out that an iphone unlocking software was about to debut in online marketing for a cost of a couple bucks. Even with the price drop you may want to think about it more before heading to stores and buying it for yourself and then buying the iphone unlocking software. Job's scheme is probably to trick people into buying a new iphone at a low price because the iphone has probably been updated or modified to be severely impossible to unlock when the unlocking software makes it's debut towards current iphone owners. For those who have gained $100 from Jobs please be aware that probably your iphone can be updated and possibly software modified to be unable to unlock the iphone from Iphonesimfree.com. Those who are thinking about buying the iphone and buying the unlocking software from Iphonesimfree please be aware that Jobs may have shipped to all stores a brand new iphone with a modified software. I can only guess why the iphone has gotten a $200 dollars price cut. If any questions feel free to email to me.

[johari @ Sep 11th 2007 2:27PM]

I have Verizon what can i do with and unlocked version work for me

[paul oberman @ Sep 11th 2007 2:50PM]

Just so everyone knows, if you are in California, you have 30 days to return a cell phone on a new contract. It is state law. Nothing they write into their "agreement" means anything.

[peter @ Oct 18th 2007 12:54PM]

What more is expected of a phone apple iphone 8gb is awesome and so amazing phone , i am just crazy about it reality is better than dream as they say , this is best express when you too buy your own today i have experience it and its great
iPhone is a widescreen iPod with touch controls that lets you enjoy all your content — including music, audiobooks, videos, TV shows, and movies — on a beautiful 3.5-inch widescreen display. It also lets you sync your content from the iTunes library on your PC or Mac. And then you can access it all with just the touch of a finger.
if you are intrested in buying the apple iphone 8gb then feel free to contact me via
[e-mail] i do have them for sell
Thanks you
peter

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[Roger @ Nov 29th 2007 10:04AM]

Hmmm... there is always something new that you don't have and what you already have gets obsolete.

Me, for example last year bought a Sony Ericsson W810 for exactly the same price 400$ and now almost one year later I can buy for the same price an iPhone, I want it...

What should I do, sell my W810 and buy an iPhone?

How much would it cost now my old W810?