Tuesday, October 02, 2007

IT Tidbits: CANOE -- CNEWS: ews - Woman sues over Apple's iPhone price cut

Well, in sue-happy USA, you knew it was only a matter of time. I understand the frustration and the anger felt by the consumers BUT that is what you get for being an early adopter of new technology. No one knows when the materials or the market will allow or will force the decrease in pricing. Does anyone think that Sony WANTED to reduce the price on their PS3 as quickly as they had to? Absolutely not but they were getting killed by their rivals' machines in the Xbox 360 and the Wii, so they had not choice.

I believe that Apple was ambitious/greedy to set the phone price as high as they did and was doomed to cut the price in short order. While the initial rush to get one by those who had to show off to their friends and colleagues cleared the first wave, reality had to set in that they could not sustain and continue to sell it at that premium price.

Let's face it, the only things that the iPhone brings to the table that you cannot find anywhere else is the iTouch screen, a marvel of technology, and video voice mail (not the hardware but the carrier's service offering). Everything else can be found on a variety of other systems in one form or another. Web browser? They have them. MP3 player? They have them. Camera? They have them (and theirs do video). PDA functions? They have them. Subsidies? They have them, the iPhone does not. And there lies the heart of Apple's problems.

I may not have that fancy 3.5" screen and that wonderful interface but I can get a phone and a plan to match their offering with only a 50 dollar outlay on the phone; sometimes less, sometimes more. However, none of the phones except for certain niche units rival the pricing of the iPhone and that is why the price had to be chopped to lure those who would not cough up $600 for a cell phone.

I love the iPhone and I hope the second generation will fill in all the missing items that people complain need to be there (i.e. 3rd party development, choice of carrier, 3G,etc.). I will continue to wait until I cannot live without one or that I no longer have a crackberry tied to my hip for work. I hope Apple wakes up from this experience and realizes that they cannot continue to treat its customers like money trees. We do have other options and we are not afraid to exercise them when pushed.

Stop pushing, Steve. We don't like it.


CANOE -- CNEWS: ews - Woman sues over Apple's iPhone price cut

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