Don,

I respectfully disagree.

Their only fault was not offering value for money.  If they had offered the
iPhone with an appropriate battery this would all be redundant.

Karen

-----Original Message-----
From: [email protected] [mailto:[EMAIL PROTECTED] On Behalf Of Don
Ferguson
Sent: Saturday, September 08, 2007 9:41 AM
To: [email protected]
Subject: RE: [Treo] iPhone price cut

Technology has worked this way for as long as there's been technology.
Early adopters pay more for (especially) hardware and then as the volume
of sales rises, and new technology enters the horizon, the price goes
down.  It's not wrong, it's economic reality in an industry like tech.
Every Palm device since 1996 has followed this model, along with nearly
every other tech toy in the last 15 years.  For example, I could have
waited two or three months to buy my 755p and paid less for it than I
did.  I didn't want to wait, paid more for it, and now the price is
slightly lower than it was in May when I bought it.  Not DRAMATICALLY
lower, and that's the key.

Apple's only faults were: lowering the price SO much SO soon, and
disco'ing the smaller unit so quickly.  That's not marketing savvy,
that's short-sightedness on many fronts (marketing, technology, sales
forecasting, demand estimating), with predictable results that nearly
everyone who bought one of the things in June would feel something been
slight discomfort and outright anger at their recent actions.  If the
price had dropped 15% instead of 33%, if they'd done this in concert
with an announcement of a 16gb iPhone, and if they'd kept the smaller
one around through Christmas with maybe a rebate or something - say
another $50 at the Apple store - only the whackos would have complained
(and you know who you are!).  As it is, 90+% of the iPhone owners are
still gently caressing its sleek form daily, and loving showing it off,
but with some level of negative reaction to Apples recent action.

Apple did this to themselves, and they deserve fallout because of the
misstep, but all they did was grossly exaggerate and publicize their
response to the normal business concepts of early release technology,
volume-related pricing, and technological advancement.

Cheers,
Don

 

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