Hi, It's Steve. Sorry for The Price Cut. Take a Credit.

Apple chief executive Steve Jobs announced a $200 price cut for iPhones on Wednesday, angering early customers. (By Paul Sakuma -- Associated Press)
By Mike Musgrove
Washington Post Staff Writer
Friday, September 7, 2007

So, all those people who paid $200 too much for the Apple iPhone?

Not happy.

Mac fans took the blogosphere by storm following Apple chief executive Steve Jobs's announcement Wednesday that he was cutting the price of the company's new smartphone 10 weeks after it debuted at $600.

Forums at Web sites dedicated to the Mac and the iPhone were flooded with complaints yesterday from customers feeling they'd overpaid.

"I sold all my Apple stock," wrote one disgruntled iPhone owner in an e-mail to The Washington Post. "I will never buy another Apple product."

Complaints like this prompted Jobs to offer his apologies in an open letter posted on Apple's Web site -- along with a $100 credit on Apple products to customers who bought the device at the old price.

"We need to do a better job taking care of our early iPhone customers as we aggressively go after new ones with a lower price," he wrote. "We apologize for disappointing some of you."

Jobs said the details were being worked out and would be posted on the same site next week.

Earlier in the week, Jobs had pitched the smartphone's new, lower price as a means for Apple to be "more aggressive."

But even for consumer technology, where prices nearly always drop eventually, it was an unusually steep and swift price cut. The change had some Wall Street and tech industry analysts speculating that the iPhone -- on track to sell 1 million units by the end of September, according to Apple -- was not selling as quickly as hoped. Apple shares dipped nearly 5 percent following the announcement.

John Carnett, an iPhone owner in Philadelphia who was annoyed by the price change, laughed upon hearing of the $100 credit and Jobs's apology.

"I'm ecstatic that Steve realized his mistake," said Carnett, who bought two of the phones -- one for himself and one for his wife -- shortly after they became available.

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