Apple to give $100 credit to early iPhone buyers

I was sitting in the room yesterday when Steve Jobs announced that he was discontinuing the 4 gigabyte iPhone and dropping the price of the 8 GB model from $599 to $399.  Many in the room broke out in applause but it’s important to point out that besides press – who generally don’t applaud during press conferences – the rest of the audience were Apple employees, Apple enthusiasts and Apple bloggers who tend to enthusiastically support anything Steve Jobs announces.

But then reality set in.  People who spent nearly $600 for an iPhone during the past few months started expressing their disappointment and, in some cases, anger at Apple’s moves.  One person wrote on an Apple discussion board, “Having paid full price for my iPhone not more than 2 months ago, I am shocked that a price drop was announced so quickly. Not only was the drop in price surprising, but the amount in which it dropped was staggering to say the least. I demand an explanation.”

Steve Jobs heard the uproar and just over 24 hours after announcing the price drop, he issued a statement saying that early iPhone buyers  would get a $100 store credit to use at Apple stores or online.  Details will be forthcoming.

In an open letter posted on the company’s web site, Jobs wrote:  “I am sure that we are making the correct decision to lower the price of the 8GB iPhone from $599 to $399, and that now is the right time to do it.”  He further said that  “it benefits both Apple and every iPhone user to get as many new customers as possible in the iPhone ‘tent’. We strongly believe the $399 price will help us do just that this holiday season.”