Does Apple Punish Early Adopters?

Back in the mid-90s, I bought an Epson printer for $450. The next month, the price of the model I bought dropped to $250, and I was ticked. I could have waited a few months, had I known they would have lowered the price by $200.

In January, I got tired of waiting for Apple to come out with a Wi-Fi version of its iPod and I bought the iPod video. Nice little model, and I got to listen to some audio books that I had been wanting to listen to. This month Apple launched the iPod touch, which is a scaled back version of the iPhone. Now I wish I would have waited.

At the same time, Apple dropped the price of its 8GB iPhone to $399.

If you were one of the first people to buy an iPhone, does it upset you that you didn't wait? Should Apple throw a gimme at the early adopters? How does this affect your perception about when or if you should buy a new product from Apple? From anybody? - Cam Beck

Update: The Brand Man Speaks.

Comments

[Erin]

Hi Cam,
After Priscilla Palmer's self development list Jenny and I have decided to try to help build the self development community. So we are holding a little contest. I would like to invite you, and anyone else interested, to find out more details at Win a $25 Gift Certificate.

[Matt Dickman]

Cam -- I have a couple of friends who are livid about this. I think it would be the right thing for Apple to do, possibly discount their AT&T service or something. But, Apple is notorious for not really caring when it makes its decisions so it'll be interesting to see how this pans out.

[Dustin Jacobsen]

I have a mixed reaction to the price change.

The reality is that Apple priced it high out of the gates to take advantage of new adopters. To reach a mass market, they knew they would have to drop the price.

I have an iPhone that I use as part of our emerging media team and I kind of write off the annoyance of the price drop as a cost of being on the cutting edge.

Consumer electronics, especially computers, depreciate very quickly once they hit the show floor. As Eli mentioned, though, without an upgrade to replace the product, this seems to be a first for Apple.

With the rate at which new electronics are being released now, the price cutting has spread over to electronics as well.

Apple knew that with all the press surrounding the launch, most people would have bought the device at the release price point.

I think most people knew that there would be some more changes before the holiday season.

The people that bought the iPhone when it was released, including several people I know, weren't happy and felt like they got gouged with the new pricing, but I also know a bunch of people that were waiting for the price to drop before they were going to jump in to the buyers circle.

The problem in this case is that the people that bought the iPhone right away will be very vocal about it. And if I bought it a few minutes before the price change, I would be unhappy as well.

But, at the same time, what would be the cutoff?

Companies aren't going to come out and say, "Don't but it now, but come back tomorrow", but at the same time, what is the correct time to go back and provide some type of compensation?

If they provided something to previous owners, would it be enough to make up for the cost difference and that would appeal to a wide audience? Wouldn't that just be admitting that they were gouging in the first place?

[Cam Beck]

"But, at the same time, what would be the cutoff?"

Dustin -
That's a good question to be asking. I know when Adobe came out with Adobe Creative Suite 2, I was only 30 days removed from buying the original Creative Suite. Adobe upgraded me. No questions asked. I was ECSTATIC!

The iPhone's been out for... what... 2 months now? I wouldn't call it gouging. In fact, I said at the beginning if they wanted to increase adoption rates, they'd have to lower the price. They've done that, but had I bought one in the first two months, I'd be a bit miffed.

I don't know what the answer is for them. I probably would have waited 6 months after launching before making this move, but since they've made it, I'd find a way to reward the early adopters.

[Dustin Jacobsen]

yeah, I'm sure there are already some psychology papers in the works over the move.

I think the launch of the iPod Touch has a key role in the move as well.

Apple might have been afraid that the launch of the iPod Touch, which shares a big chunk of the same interface as the iPhone, would impact the iPhone sales too drastically with a big price point gap between the two products.

If you put it into the perspective of a $100 upsell to get a phone, that makes it a much easier sell to the consumer.

[Roger von Oech]

I've been an Apple customer since '81.

I bought an iPhone 2 months ago. Am I pissed that Apple dropped their prices on it? Not at all. I've been able to use this delightful gadget for two months and be more productive. It's been fun.

Am I surprised Apple dropped their prices so soon? Yes, but if that's what it takes to sell many millions of units . . . and consequently keep supporting and developing the iPhone . . . then that's fine with me.

[Cam Beck]

Roger - Even though you are satisfied with your purchase, how would you feel if you got a check from Apple and/or AT&T for $100 as a sort of "customer loyalty bonus?"

Do you think it would change the minds of the people who have spoken up about it?

[jon burg]

Apple is certainly punishing early adopters, but this is not exclusive to Apple. Everyone does this - but in truth, early adopters do this to themselves.

By needed to be the first, they will continue to screw themselves until they learn to purchase for utility.