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Reader Feedback Request: Thoughts on the iPhone Price Drop

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Ok…so, after only 2 months, the price of the iPhone drops to $399.

That’s got to really ruffle some feathers of early adopters.

I’ve already talked to a few that are absolutely steaming mad about this. I have to say, I can fully understand that…and I’d like to know what you think about it as well…so leave a comment, or shoot me an email and let me know what you think about the price drop. Personally, it makes me wonder if the iPhone just isn’t selling as well as they’d hoped…but what do you think?

Are you FURIOUS?



Sound off below…

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Kokou Adzo

Kokou Adzo is a stalwart in the tech journalism community, has been chronicling the ever-evolving world of Apple products and innovations for over a decade. As a Senior Author at Apple Gazette, Kokou combines a deep passion for technology with an innate ability to translate complex tech jargon into relatable insights for everyday users.

63 thoughts on “Reader Feedback Request: Thoughts on the iPhone Price Drop

  1. sure… I’ll post another comment. I’m obviously not busy today.

    well… being one of the ones that stood in line on launch day, I can honestly say I’m not mad about the price drop. I’m very surprised, I’ve been telling people that “It’ll get better before it gets cheaper”. I’ve been very satisfied with my iPhone and still say it’s worth every penny of $600.

    If I bought it last week… I might be a little upset.

  2. it’s a very welcome development for me… since the u.s. pricedrop means that the european launch price will most likely also be far lower than estimated until now. and frankly, i think that the new price comes far closer to what the device is actually “worth” feature-wise, or at least to what i might be willing to pay.

    i do feel the pain of you guys who plunked down 600 bucks for this… but again, to be quite frank: you wanted the thing so bad that you were willing to pay what it takes to get one, no matter what the price. so this might be a lesson to not get ripped of in the future. 😉

  3. My iPhone is worth every penny of the $600 I paid for it. I’m glad that more people will be able to afford it now. I hope Apple adds voice calling and search soon. And a software development kit.

  4. I understand there are risks and additional expense being an early adapter. However, in this case Apple has slighted perhaps their most loyal base. Not only did they reduce the price by 1/3 but they also increased the storage capacity to 16 GB with the new iPod Touch.

    Personally this upsets me greatly. I spent $600; which is much more than I have ever spent on a cell phone. I love the product. However, when spending that kind of cash I want six-months of justification that I have the best product available. It ticks me (and I am sure many other people) off that two months in, I no longer have that justification. Two months in no product released today should have anything better, especially at less cost than the flagship product!

  5. Karl, just heard that story this week…basically, the owner hired new workers early in the morning, midday, mid-afternoon and then right before quitting time, and then paid them all the same amount. Details are a bit different than what we’re seeing, but I get your point.

    I was really, REALLY ticked when I first saw that. But I’ve cooled down. I just remind myself what I’ve told people that asked me all along…the iPhone was totally worth $600 to me. Is it fair that the price went down by 33% in 60 days? No, not at all. Is it ethical? I don’t think so. Will I think a lot harder the next time Apple releases a must-have item? You betcha.

  6. I’m pissed that I broke my 30G video in May and went out and spent $250 for a new one. If I knew, I would have held out for 90 days, or picked up a shuffle to hold me over.

  7. It is the early adopters fate. It happened to me with the iMac G3 233. Since then I read the rumors and it worked pretty good. Still, Apple should pay some money back when it was purchased in the last 4 weeks. The funny thing is that nobody would complain when Apple would still ask for the (obviuosly) to high price for another couple of month. I am not angry anymore when I paid to much. In the long term I regreted more often that I bought the cheaper version and later I missed some features.
    Enjoy your iPhone, later you will still meet people who will be amazed by it and you can tell them “That is my old phone, I have it since three years.”.

  8. Last time I ever buy anything from Apple as an early adopter. I can’t decide whether I am more pissed at getting burned as an early adopter or for being clearly gouged for $200 when they are still obviously going to still make money by selling it $200 cheaper. As a result of this I am seriously considering not buying two more iphones I had planned on purchasing in the next 6 months. I do not reward being taken. Even by Apple. Nice touch touting customer satisfaction results and then ramming a $200 hit right in the pooper. F off Apple!

  9. Well… Can’t be to bummed, we all knew it was going to happen… but as Roger said, it will be the LAST time I purchase from apple out the gate.

    I love my phone and have no regrets!!!


  10. Furious? No. As an early adopter, I expect the price to drop significantly a couple of months after buying any hot new shiny toy. The same thing happened with the Moto RAZR, which was something like $500 when it first came out. Now you can get them for free. *shrug* It’s just how life is in the tech sector.


  11. I didn’t buy the iPhone, however, I bought the iPod 5th gen about 3 weeks later the 5.5 gen came out at a significantly lower price with more storage. I felt shafted for a while.

    If I had bought the iPhone, I would be pissed. But since they dropped the price $200, I am considering getting one….but I doubt I will. I think by this time next year there will be a “better” version out. So I am holding out.

    I would’ve likely bought the iPod touch, but what’s the point at 8 or 16 GB? I have almost 60 GB of music, video and photos in my 5th gen….

  12. I have to say I am extremely Extremely EXTREMELY mad, but from what it says on TUAW that since I bought my iPhone at the beginning of the month (Only 5 days ago) I can call Apple and get the difference gonna try….

  13. I usually always buy Apple products out of the gate. I waited though on the iPhone. I knew there would either be quirks that needed to be worked out or an update before Christmas. I think it’s the price you pay to have the “latest and greatest” I don’t think anyone should be surprised about the price drop.

  14. if you bought one in the last 14 days, you can get a refund. has a piece on the refund.

    But if you bought it later than that, you are out of luck!

    I am thinking of getting a Mac Pro this month, but I am worried they’ll drop the price on those or something next month when they are due to release Leopard.

  15. Ok, there’s this story in the bible (not to make things religious or anything, but just to make a point) about how these guys were working in the field, and were being paid like 10 cents an hour or something, which was a fair wage (go with me here…). And then, a later shift came, and the boss decided to be generous and pay them 30cents an hour. And obviously the 10 cents an hour ppl were pissed and were like “Why did they get 30 cents when we only got the regular 10 cents?”…, and the boss was like “I wanted to be generous, so I was generous. I was still fair to you.” Or something like that! 🙂

    Anywho, what I’m trying to say is, many of us thought $500 / $600 was fair for the amazing technology apple released on 6/29. But now that they’re offering it at a lesser price (which we all knew would happen eventually), it doesn’t mean that they hosed any of the early adopters. I really feel we should look at it as adding value to a product.

    Anyone with me/Understand me on that?

  16. Karl, I understand where you are coming from. Heck, if they hadn’t sold those 1 mil iPhones, then the price wouldn’t have dropped… least I don’t think it would.

  17. FURIOUS!!! As early adopters I think we all expected a price drop eventually… but this soon??? Forget the fact that the “iPod touch’ has all the features most us really wanted w/ increased storage capacity and a smaller price tag. We all payed an extra $200 to not only be the beta testers but free advertising. I know that I have drained many a battery cycle just showing off all the features of my iPhone to complete strangers. The sad part is I probably would’ve spent the $200 on one of the new iPods released today. “Apple’s Folly”

  18. A friend of mine who just bought an iphone couple of weeks ago for the full price, called the Apple CS and the CS rep refunded the difference including tax

  19. Honestly I’m kinda upset, but the fact remains the the money is gone and I am still very happy about the purchase. Its not a surprise that they dropped the price with the new iPods. When you look at it from a marketing standpoint you can get an 16gig iPod or an 8gig iPhone. iPhone had stayed the same price then the majority of people would have left their cell as is and gone with the new iPod. With this move it makes the choice a little more difficult for consumers, they will get either one or the other and Apple does not want to see their iPhone sales drop so soon after release.

  20. It was obviously horrendously overpriced at $599. Now it seems to be at about the appropriate price point, though perhaps still a little too much for a phone that doesn’t even have voice dialing or BT DUN.

    I’m very surprised that they didn’t release a 16GB iPhone at +$100. I bet that’ll come pretty soon in a quiet launch.

  21. I’d always expect a price cut, but I’m pretty surprised at the level and timing. I’d of guessed a couple more months at the original price – 6 months has a nice ring and then maybe a $100 or so off.

    I’m just glad I didn’t buy one over the Labour day weekend.

  22. I guess there is nothing we can do about the technology progressing and prices going lower. Look at the HDTV market. Lots of people have spent money only to see the prices drop by hundreds of dollars over a month or so.

    I REALLY want a Macbook (or MBP). I haven’t decided which to get yet, but playing on the Apple store I can get a black Macbook with a new Nano (8GB) for about the same price I can get a MBP. Soooo I dunno. But sure as I buy the Macbook or MBP, I’ll get burned when they release something newer and better at a lower price….

  23. As a few of you already stated, I also am not surprised at a price drop – – but only 2 months after launch does make me grind my teeth with some anger. I can accept a 6 month timeline for a price drop much me easier. After all, it’s us early adopters that help to identify the bugs and expand the marketing arm of Apple.

    I honesty feel that those who did make the purchase should get something to soften the $200 2 month price drop. But I know that will never happen.

    I am happy with my iphone, but competely unhappy with the International data charges/ plans . My iphone is home as I am writing this from Europe during my 3 week trip — which really sucks.

  24. I’m not that happy after spending $500 for a 4GB! I think they should give all the early adopters a free NANO for the price difference!

  25. I’ve been an apple user MY WHOLE LIFE. This pattern of price drops every 3-6 months is a pettern that has been repeating itself for the past 10 years. If none of your learned your lesson in that time, then that is the price you pay to be bleeding edge.
    I feel as though all of you who invested early helped to ensure the continued success of the iPhone.

  26. I am happy i didn´t buy that 4GB iPhone i was going to get in my recent vacations to Texas.

    Thanks for the AT&T guy that told me “you can´t have an iPhone if you dont get a 2 year contract with AT&T” i think i forgot to tell him that the iPhone was for somebody else as a present 🙂

  27. Bought my iPhone the second day. Do I wish it had been $200 less? Yes. As a long-time “early adaptor” do I realize there are risks to being among the first? Yes. Will I get pissed and change my ways? Nope.

  28. I’m pretty excited because I purposely waited to buy an iPhone, thinking the price would probably drop, although I didn’t expect it this soon.

  29. I don’t care about the price drop. Doesn’t surprise me or disappoint me. I love my iPhone and thoroughly enjoy it – that’s technology for you. If you wait for something until it’s the right or lowest price, what’s the point?

  30. It’s supply and demand, I think Daring Fireball said it better than I can: “Apple didn’t cut the price because demand is low — they set the debut price ridiculously high because demand was ridiculously high. I suspect that for the first few weeks, they were selling iPhones as fast as they could make them. Apple’s being aggressive, not defensive. (And for those of you who’ve already bought one and are pissed about the price cut, if you didn’t think the iPhone was worth $599, you shouldn’t have bought it. That’s how supply and demand works.)”

  31. I am livid over the $200 price break so soon…I feel like an idiot!! I have been a Mac user and Apple supporter for over 15 years. I have never felt so shafted with a purchase…ever!!

  32. I am getting a solid laugh at these folks that are upset and “livid” about the price drop (sorry Mike) but do these people get livid when they drive off the car lot and get home to a 30% depreciation in the value of their car on the way home ?

    Bottom line .. early adopters (like me, i bought 2 iPhones day 1) pay more because we want to play first and thats the premium for playing first.

  33. um, does anyone know if the iphone still comes in the 4gb model? i cant seem to find it on the site. i would appreciate it much if someone could let me know

    thx much

  34. To all you whiners… you’re absolutely pathetic. Exactly WHO forced you all to stand in line for hours, or pay the prices you did to get your iPhones? Um… NO ONE!

    You wanted to be the first one’s to have the coolest new gadget, and you paid a premium for it. Do you honestly expect any company to issue a rebate or in some way compensate you when they decide to drop the price of a product? If you do, you’re not only pathetic, you’re retarded.

  35. I don’t think it has to do with the sales being slow, I think they did it for holiday sales, as the price was the biggest thing people bitched about.

  36. Last fall, I began listening to tech podcasts and reading sites like looking for speculation on a phone/iPod from Apple. I own a 3rd gen iPod and was really ready for an iPod with a color screen and video capability. I began to put away any “extra” cash I had and made plans to buy the “1-in-all” iPhone after the January Macworld.

    So June 29th came and I read all the reaction I could making sure the device was delivering as promised. So, after a few days, I went and plunked down my $599+tax and didn’t sweat it ’cause this is what I’d intended to do all along. I knew it was alot of money and that 8GB wasn’t alot, but I didn’t want to wait any longer. I knew that in time prices would be reduced and capacities would increase.

    So after less than 10 weeks of use, I have a great device that I love, but is now 33% less than it was only 10 weeks ago. I certainly hope that sales or something is behind this, ’cause I really feel like I got the shaft today.

  37. Don’t be angry or sad – that’s life in the IT biz and more important that’s what you’ve pay for beeing an early adopter and beeing the first on a whole planet to have had a brandnew product which will go down in the history books of mankind.

    Don’t be angry or sad, enjoy your life and remember, your last clothes don’t have pockets – so spend your money and enjoy what you’re spending it for a slong as your alive.

    Greetings from Germany,

  38. @Matt

    You can find the 4gb version of the iPhone at At&t and Apple Stores until they sell out. They are $299.

    They have been discontinued, so they’ll be gone soon.

  39. it is obvious that apple has this classical marketing strategy to make upcoming big cut prize and also to make lower price when it enter Asian market. Early price is just a big shot for its exclusiveness, product image matter.

  40. Christ, Listen to yourselves whine! You are whining about how cheep something has become! It came faster then you expect so you bitch and moan?

    So you think Apple should have kept the price up just to keep people like yourselves from feeling shafted? They are willing to reduce the price, WE ALL HOPE FOR PRICE DROPS!!!! grow up!
    Apple makes business decisions!

    When you are an early adopter you had better expect this!
    Live with it! you have one of the best pieces of technology on the planet


    PS. Shortly after the “event” began I switched to another site doing live broadcasts because I did not like the opinions/interpretations mixed in with the news. I guess I’ll stick with news sites instead of blogging sites in the future!

  41. @ByrdMan

    Yeah, if you don’t want opinions, I’d stay away from blogs. Heck, I’d stay away from the Internet in general.

    You will always find opinions in any of my live blogging….heck any of my posting…and you’ve been around here for a while. I see you comment all the time.

    I honestly would have thought that you’d have expected that from me.

  42. ByrdMan talks sense. I love Apple products and have for many years but I rarely ever buy first generation anything from them. It’s important not to drink too much of the Kool Aid and to be just as calculated in buying as Apple is in selling their products.

  43. I think the iPhone is worth the $599 that it cost the day it came out. I didn’t think it was over priced then, and I don’t think it was over priced now.

    In fact, once I heard about the price drop, I went and bought a second one for my wife.

    I can understand both sides of it.

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