The iPhone's $200 Price Drop - I Got My $200 Back (Updated)

There's quite a buzz on the web about the $200 iPhone price drop. I personally have very mixed emotions about this subject. I've always thought the iPhone was about $200 over priced and I think this price drop hits the sweet spot where the iPhone should have been priced all along. Investors seem to think differently with Apple's stock taking over a 7 point dive on the day of the announcement. We've seen figures suggesting Apple makes a 50 - 60% markup on their iPhones which means this price drop cuts directly into profit, something Apple stock holders don't like. Then of course the big question is why drop the price now? The iPhone was already the most successful launch of a cell phone in the history of the industry, why drop the price when it seemed to be doing so well? These are all topics we'll discuss at length on our next podcast that will be released sometime this weekend. If you have thoughts or opinions, please send them in now and we'll try to share them on our next show.

As for me, I bought an iPod on August 11th, just over the 14 day return and price-matching period that Apple has on their products. I was stunned when I heard news of the price drop, I didn't know whether to laugh or to cry. About 4:30 Eastern I called my local Apple Store and told the associate who answered the phone my predicament and asked if there was anything that could be done. She replied, "Normally we have a 14 day policy on returns and price reductions, but if your bring your iPhone receipt in anytime before the 30 day mark, we'll credit you the $200 difference." Great! I made sure to get her name and told her I would be in later that evening. I didn't want to risk them changing their minds by waiting until the weekend. After getting off work I ran back to my condo, dug out my iPhone receipt and then zoomed off to the Apple Store arriving about 6:30. Thankfully, the same girl who I spoke with on the phone was still in the store and I asked to speak with her. She looked older than most of the other employees, though I didn't notice if she was a manager (but I think she might have been). I told her who I was and explained that we spoke a few hours earlier and she immediately took me back to the register and issued a refund for $200 back on my credit card.

While issuing the refund she told me that she really wasn't supposed to do that and since we had spoken she had a conference call from Apple specifically instructing them to stick to the strict 14-day policy. I suppose they were honoring my refund because she had told me earlier on the phone, or perhaps they made a decision at the store level to refund purchases in the last 30 days from a customer service stand point, I don't know. I for one am very thankful I got my $200 and understand the frustrations that others are feeling, especially those who stood in line for hours on release day and paid the $200 premium.

I've read reports on the web of other users having some success getting refunds or other accommodations. USA Today posts an interview with Steve Jobs specifically asking him about that return policy.

Q: What do you say to customers who just bought a new iPhone for $599? Sorry?
A: That's technology. If they bought it this morning, they should go back to where they bought it and talk to them. If they bought it a month ago, well, that's what happens in technology.

Update: Thursday evening, Apple posted an "Open Letter to iPhone Owners" discussing the decision to reduce the iPhone to $399 and the impact that has on the consumer. Bottom line, Apple will be offering a $100 store credit to all iPhone owners who have not received any other kind of price break or concession already. Details on how the credit will be implemented are in the works and will be released sometime next week.

Please email us (themaccore@gmail.com) or send us an audio comment 206-203-2673 with your thoughts on all this and we'll try to get as many points of view on our next show as we can.