A Business Apology

Implications: Mr. Steve Jobs apologized publicly and said Apple will offer a $100 credit at Apple stores to all iPhone users who paid the original price. This was occurred because Apple announced that is was cutting $200 off the price of its $599 iPhone. Mr. Jobs insisted the price cut was necessary to broaden the market for the product, but he acknowledged that Apple needed to assuage disappointed early purchasers.

Analysis: We all want to be the first to have new toys however the move of Apple to cut its price of it new iPhone product has its share of implications.

First and foremost the timing of the price cut would discourage future customers from buying Apple products early in the release phase.

I myself waited on the iPhone and will be rewarded for my patience.

But this now sends a precedence to wait on new releases for future phones since price cuts are the new name of the game.

While is was a very smart business move to offer the in-store rebates of $100, Apple should have just given cash.

Let this be lesson for Apple and the competition to take better care of early customers, since they fuel the market for bigger and better.