Whiners and the iPhone price reduction

Apple iPhone Letter

Whiners

“whiners” is a perfect post. Apple is finally getting it right and people are blasting them. So friggin’ what. I bet they are laughing all the way to the bank with all this free publicity.

Two clients called me yesterday saying how happy they were that they could now get the iPhone. They think they are getting a S-T-E-A-L because the thing is “worth” $600 but they are only being charged $400.

How do you spell “brilliant”?

Think about it another way… If Apple had released the iPhone for $400 they would not have been able to lower the price for a very long time. Every iPhone they sell from now on will be valued at $600 >>and<< folks will think it is cheap. Apple also was able to rope their competition into thinking they would be able to sell similar phones for $600 and make a profit. I am sure many of them thought; "Ohh... we can do better than the iPhone and sell our babies for only $500! We will rule!" Now the Zune phone™ and every other killer "SmartPhone" is dead on the drawing board. Hell, the Treo which hasn't been seriously updated in 2 years sells for $400 if you do not get a discount. Apple is about to do some serious damage to the cell phone business. I would not be surprised if they are capturing 5% of all non-subsidized USA handsets by the end of 2008. They will sell 10 million iPhones by July of 2008. PS: A friend calls Steve Jobs the new Willy Wonka because he makes gadgets everyone wants. When you finally taste one, you are hooked and desire everything he has for sale 😉

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