Investors, early adopters dismayed at iPhone price cut
Posted by Dennis Sellers 
Sep 6, 2007 at 7:56am
Apple’s price cut of its iPhone and new lineup of iPod players should mean strong holiday sales, but Wall Street investors accustomed to Apple’s profit margins appear a bit disappointed, according to CBS News.
Apple stock dropped more than five percent after the price cut was announced Wednesday, closing at $136.76, down $7.40. In extended trading, the share price fell another $1.01.
Meanwhile, those who snapped up the iPhone before Wednesday are coping with a bitter aftertaste now that it is $200 cheaper within 10 weeks of its introduction, notes CBS News. It’s a rare move, as Apple typically discounts only older products.
In an interview with USA Today, Apple CEO was asked what he would say to those who just bought a new iPhone for $599 (the price has been cut to $399).
“That’s technology. If they bought it this morning, they should go back to where they bought it and talk to them,” he said. “If they bought it a month ago, well, that’s what happens in technology.
USA Today also asked Jobs: “To do this, are you taking a hit on costs? Or have prices really come down?”
His answer: “We’re in high-volume manufacturing, and we’re pretty good on the costs side. We’re also willing to be more aggressive. We think we have a real winner, and customers love the iPhone. The product’s been extremely well accepted; we want to put the pedal to the metal. A holiday season is approaching; we’d have to wait another year for another one.”
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Dennis Sellers
Dennis has been a newspaper editor/reporter (seven years) and teacher (seven years). He has over 10,000 magazine, newspaper and online articles to his credit. He has also covered the Mac and tech industries for over a decade for such online publications as MacCentral, MacMinute and now MacsimumNews.
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