What do you guys think about what Apple did?

I would have - I like the idea of carrying one gadget around. I’m not a buyer of the iPhone now because I don’t want to sign up with AT&T for 2 years. I won’t even be in this country 6 months from now. I am waiting for an unlocked version to come out outside the US, and I will buy it then.

I actually just played with an Iphone yesterday. What impresses me the most is the instant video from sites like Youtube. The keyboard is a bit clumsy but overall the tech is a winner. As for the cut, it does come off as if they did not have a fluid plan in place. The stock should be fine…esp with the increase in desktop/laptop sales.

jrumph Wrote: ------------------------------------------------------- > I think it was brilliant on all fronts. > > 1. Suck out a premium from the die-hard Apple > group that will pay it. Sell 1m phones at this > price. Receive $200m in extra revenue. > 2. After demand starts to fall, lower the price to > a range that a normal person would consider paying > (on target with Treo, Blackberry, etc) > 3. Tick off your loyal customer base, but placate > them with $100 in store credit. They love you > again for “bailing them out”, but you are out only > your cost equivalent of $100 retail price. > 4. Add on top that the people with the store > credit are your loyalists that are likely going to > use that money to buy a new ipod, which will just > bring in more revenue. > > Brilliant. A few years down the line, this will be in economics textbooks under the “Price Discrimination” section… and indeed, this move was very smart IMHO.