A 200 Dollar iPhone Question Not Worth 2 Cents.


On his Internet Nexus site, Paul Thurrott takes Apple to task for dropping the price of the iPhone so much, and then baits current iPhone owners with a question about being ripped off.

“So Apple took the unprecedented step of lowering the price of the iPhone by $200 to $400… My God. It’s kind of insane”

Yes, dropping the price for the holiday season is crazy. No one’s ever done that before (*rolling eyes*).

“My opinion on this is that the iPhone isn’t selling as well as Apple would like. You just don’t drop prices that aggressively so quickly. Ever.”

Well, Apple just did. As for the iPhone not selling so well, the iPhone kicked ass in its first full month. Clobbering all Palm devices combined, clobbering all RIM devices combined, and selling greater than any single Nokia model. Those are some impressive sales figures. And now they’ll get better.

“Today’s iPod announcements would have been incredible without the iPhone price drop.”

They were incredible, and with the new iPhone price they were even better.

“The question, of course, is this: Does this price cut screw the early adopters? You know, the people who actually waited in line, like lemmings, to get an overpriced gadget that will eventually sell millions of copies. The people who would pay anything for any product Apple cares to sell. The fanatics.”

Ah, Paul’s true colors are showing. He still thinks every iPod and iPhone owner is some sort of Mac freak. Will Paul ever learn that the old arguments of calling people who like these products “lemmings” and “fanatics” isn’t going to fly? Why not come up with, you know, an argument, instead of name-calling and baiting people with silly questions?

As for the question itself, it’s patently ridiculous. I bought my iPhone one week after they debuted. Is my iPhone somehow “less” because of the new price? No. Is it somehow different than when I bought it? No. Did Apple render it obsolete today with a better model? No. Can somebody get a better iPhone than mine at any price? No. (In my opinion they cannot get a better phone than mine at any price.)

Getting the iPhone into the hands of so many more people means there will be that many more apps written for it, and web sites that work with it, and accessories developed for it, and IT departments that will have to support it, and on and on. This is a good thing, except of course for any Microsoft Mobile fans like Paul.

Is a price drop of this much this soon unprecedented? Beats me, I don’t claim to follow all price drops for all consumer electronics. But even if it is, this is an unprecedented device, and Apple wants to rock the Christmas season. Personally, I wonder if the original plan was to drop the 4GB to $399, but everyone wants an 8GB, so they discontinued the four and put the eight into that slot. Bottom line is they likely wanted the entry price at $399 for Xmas.

“Or, is Apple just doing The Right Thing ™ and moving quickly to overcome what has clearly been the iPhone’s biggest complaint?:”

Nonsense. See the above about sales in July. Clearly the iPhone price was acceptable. But as I explained above getting even more people on board is a good thing; Christmas is a great time to do it.

For those who may be concerned that Apple lowered their margin too much, I disagree. Yesterday Apple had very high margins on two “iPod” devices, only one of which was selling like hotcakes. Today they lowered that margin, but added high-margin devices in the two iPod touch models. These devices will fly off the shelves, so Apple will be getting high margins on three items selling like hotcakes instead of very high margins on just one. I think Apple will make more money with this approach, and believe the touch models gave them some leeway price-wise on the iPhone.

“I gave the iPhone a 3/5 rating in my recent review”

Ah yes, the seven-part hatchet job disguised as a review. But where is Paul’s grueling seven-part review of Nokia or Palm devices? Or the Blackberry? Oh that’s right, his job wasn’t to denigrate those devices, just the iPhone. I’m surprised he needed seven parts to pull it off.

I pointed out how pointless and biased Paul’s “review” would be even before he wrote it. I did so here and here. His enormous bias against the iPhone was evident long before he started the “review”. A lot of words to say nothing while 90% of the reviews, even from Apple bashers, are resoundingly positive. I wonder what’s it like to not see the future even when you hold it in your hand. Everyone is scrambling to make something iPhone-like (heck, Nokia showed an iPhone rip-off and said they “copy with pride”!), yet Paul gave it 3 out of 5. Heh.

Oh well, it’s just Paul’s job, and somebody’s got to do it, right? I bet it’s times like this Paul really hates being a shill.

Anybody truly upset and feeling ripped off should STFU and put theirs on eBay for $300. It’ll sell because it’s $100 off the current price, and they’ll get their $200 plus a 50% bonus. After all, if it’s only about the 2 C-notes that should satisfy them. Somehow I don’t think we’re going to see eBay flooded with early adapters selling theirs, though. Some people just like to have a reason to bitch. They’re not giving it up. C’mon people, stop being baited.

Meanwhile, I’m sure Rob Enderle and the usual quote whores will jump all over this, as will every newspaper and blog looking to get hits. I can only hope intelligence and rational thinking will prevail.

(image from Engadget’s live blogging of the keynote today.)

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