Not sure if this will do anything or not, but here's the information any way:

If you got burned by buying your iPhone more than 14 days ago. Call Apple and ask for customer service manager and file a complaint! Here's the #:

1800-MY-APPLE option 8 and then 9.

Thanks to iAppleSuck for the info.

Some graphics for people to use. I'll improve them later.

Here's why.

There are a few driving factors behind price drops on technology products. Here are some:

• Component prices: either the component suppliers decrease the price as the volume rises, or they are squeezed by large companies like Apple to decrease component prices as they themselves cost-reduce the components over time (again, driven by the factors listed here)
• Reduced capital costs: as volumes rise, capital expenditure on equipment is amortized over a larger number of units, hence bringing down the overall cost.
• Improved manufacturing efficiency: better machines, faster processes, faster testing and quality assurance etc.
• Improved logistics: cheaper manufacturing location geographically, cheaper shipping methods, cheaper packaging

These are only a sample of what's at work in pricing. Sometimes companies just enjoy the savings from the above factors as pure profit, without reducing the end price of the product. Eventually though, they lower the price due to either competition, or because a new generation of products with better features is released.

So what happend with Apple here?

First, let's look at history. On the iPod and related products (classic, Nano, or Shuffle), Apple maintained the price advertised at launch until a newer version was announced - which usually replaced the old product, but provided similar functionality for a reduced price. For example, selling the 20GB iPod for the price of the 15GB when the 4th gen iPod was announced. Or like today, where the 80GB iPod Classic costs the same as the 30GB did yesterday.

No problem with that. The rationale for reducing the price is clear. As a consumer, I know this is coming.

But that's not what happened with the iPhone. No new iPhone was released, which would normally bring about such a huge price drop (like $400 down to $250 for the 80GB iPod). And remember the factors behind price drops I mentioned earlier? There is almost no way any of them have kicked-in in the 60 days since the original launch.

Heck, let's assume that ALL of them kicked-in in the past 60 days. None of them, individually or collectively, can account for a 33% price drop. No way.

I would challenge (not rhetorically, actually) someone else to produce evidence of another consumer product that has dropped in price so much and so fast.

So why should I accept such blatant gouging by Apple? Such greed and disloyalty? I won't. I am pissed, and in my opinion, rightfully so.


Apple screwed me out of $200.

We cannot let Apple do this to us without taking some action.

iTunes gift cards? Apple store gift cards? Cash back?

I demand restitution. Who's with me?

Apple is a money-grabbing, opportunistic, disloyal company.

Just over 2 months after releasing the 8GB iPhone for $599, today Apple announced a price cut of $200...a whopping 33% off.

We all know that price reduction for technology products is inevitable. But I don't think that's what's at play here. No company can manage a 33% cost reduction in any technology product in under 90 days.

It is clear that the market price for the iPhone was never intended to be $599. The real price was always lower. Apple consciously decided to charge more than the fair market value for the product to maximize profit from early adopters.


(Photo from Apple's iPhone "Day One" photo gallery)

But who are the early adopters? It is safe to assume that many of them are loyal customers of Apple. Many of them evangelized to their friends about how great the iPhone is. Little did they know that they were being used as a revenue-generating marketing tool (quite possibly the first in history), paying $200 over fair market value and simultaneously doing Apple's bidding -- allowing their family and friends to touch and experience the iPhone, possibly convincing some to buy it, also at the inflated price.

So thanks Apple. Thanks for doing this to your customers. Thanks for the hype, the greed, and the betrayal.