If you were to design a product whose price would decrease, it would be hard to do better than the iPhone.
First, it was a new technology, and as state-of-the-art technology becomes state-of-the-market technology, the price drops. Look at DVD players. Look at computers.
Second, let’s face it — Apple is as much in the fashion business. The selling use cases for the iPhone involve mroe than one person looking at the screen. The hottest time for the iPhone would be right after it was released.
So why the outrage at Apple over this, when there is not outrage when the price of DVD players or last season’s clothing drops?
A few reasons, springing from this discussion:
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The iPhone’s release and initial price were very public, and the subject of much commentary at the time. As was this recent price drop. So the early adopters are now publicly “outed” as people who paid 50% more for a product than they could pay for it today.
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Apple has built a brand out of being kind of an “anti-corporation.” Think about the “I’m a Mac; I’m a PC” commercials. By using Apple, you are sticking it to the Man!
What Apple has built is not unlike a religion. And that religion has dues, and its members have been dutifully paying them, and telling themselves (and their friends) that they’re not really making a corporation rich.
But then, Apple first locks iPhone users to AT&T, which would have to be in the Top 10 of corporations that would be considered “the Man.” Then, it sees a chance to increase its membership by lowering its dues. And it does so.
I think what we’re seeing is cognitive dissonance. People wanted to believe Apple was different but they’re not. They’re in it to make money just like everyone else, and if they can make money by charging its True Believers more than the wait-and-see folks across the street they will.
And Apple also made very public fools out of its best customers. That’ll piss them off.
