iPhone Price Drop Response Was the Right Move for Steve Jobs
September 7, 2007 by Eric Eggertson
Filed under Marketing
Steve Jobs positions himself as the guy who knows everything worth knowing about product design, marketing, the cool factor, and technology.
The problem with being a self-professed know-it-all is that when something unpleasant happens, like customer furore over a sudden, sharp price drop in Apple iPhones, it’s hard to say, "Gee, I was surprised by what happened. Didn’t see that coming."
To observers, it’s all part of a hidden plan - entice devotees into paying a steep price for a new gadget, then pull the rug out by slashing the price by one-third two months later.
Apple’s $100 coupon response to the uproar has been uncharacteristically fast and responsive.
Jobs (and Apple) made the right call. The discount coupons are a good gesture to the most fanatical customers who forked over big bucks for the latest hot item.
Listening to your customers, and recognizing a situation when they are legitimately angered by your actions, is invaluable.
Jobs and Apple would do well to keep doing what they’re doing. Designing people-friendly technology. Making customers feel good about their purchases. Recognizing and correcting errors quickly.
It’s a recipe for success, if you don’t take the "we’re smarter than the other guys" attitude so far that customers start to think of themselves as the other guys.
Tags: iphone, price drop, sales, customer, business, retail, public relations, prices, responsiveness, steve jobs, apple
Eric – I’ve got to agree with Bob Cringely on this one. I don’t think the iPhone price drop was an accident, nor do I think it was a reaction.
I think we all got played, and Apple gets to keep a huge wad of cash while basking in the glow of apology and consumer empathy.
We came to the same conclusion. Classic crisis PR, and they nipped it in the bud.
Oh, and Ike was right. It was not an accident.
The price cut was an intentional reaction to Nokia, Samsung and Sony preparing to unleash a can of whoop @ss on Apple. Jobs picked a bigger fight than Microsoft, if possible, and knows it’s going to get very ugly quickly.