Reason for Reducing the iPhone Price

Date September 8, 2007

Apple estimated to sell 1 million iPhone by the end of September. My guess is that they realized that they can’t meet that number and decided to lower the price to help push more iPhones.

Should they not reduce the price and miss the 1 million mark and give the impression that the iPhone is a bust and then be forced to lower the price any way? Or should they reduce the price now while its status is untouchable and help reach the 1 million mark faster? Either way their stock price would be affected. I think reducing the price now is probably better because once they hit the 1 million mark in a couple of weeks the stock price will sky rocket again and the iPhone status will not be affected. So, now that I think about it, it probably was a good move. Maybe…

If the iPhone price reduction helps bring more buyers, then Steve Jobs’ move to reduce the price will be considered ingenious. If it doesn’t work out then he has alienated early adopters and scared of a lot of buyers from investing in his technology right way. I personally, will not be an early adopter of another Apple product. Even though I am happy with my iPhone, I would be happier with my iPhone and $200.

What do you think? You have a better reason for the price reduction?

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    I think that iPhone users should be very angry and worried. It seems to me that everyone who wanted the iPhone, now has one. Can Apple sell more? Well, it seems obvious that they weren't, so a price drop was necessary.

    The worrisome part is that this may be an exit strategy to get rid of inventory. I always said that the cell phone industry is fast paced, with every company releasing new models every other week. So Apple's 1 phone might not cut it in this type of market. Will the iPhone go the way of the Newton?... We will see.

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