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September 14, 2007 9:18 AM PDT

Apple details $100 iPhone credit

by Ina Fried

Apple even finds a hip way to make amends.

The company will send a $100 store credit for early iPhone buyers directly as an SMS text message to the iPhone. To be eligible, the phone must have been purchased before August 22 and service needs to be activated on the device to claim the credit.

Photo of refund messages

The move is aimed at placating early iPhone buyers irked by the fact Apple shaved $200 off the price of the gadget roughly two months after its introduction.

Devices purchased between August 22 and September 4 are eligible to get $200 refunded because of Apple's price protection policies. To get the refund, however, claims must be made by September 19.

Apple posted the details of the offer on its Web site on Friday.

Originally posted at News Blog
During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft. E-mail Ina.
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It's a good thing
by ThatScienceGuy September 14, 2007 10:00 AM PDT
It's a good thing AT&T's SMS system isn't a total mess, otherwise there could be problems with qualified people getting their rebate!</sarcasm>
Reply to this comment
A company that cares
by MaLvaDo39 September 14, 2007 10:01 AM PDT
It's very refreshing!
Reply to this comment
Outrageous!
by theiway September 14, 2007 12:13 PM PDT
This company doesn't care at all about you or any other of its clients. I am so outraged that you cannot redeem the credit for iTunes. I have nothing else to buy at Apple as I don't own a Mac and already puchased all the accessories I need for the iPhone.

I am very close to making a decision to cut my losses short, discontinue my iPhone service and switch to another phone with AT&T. I will sell my iPhone at a loss but cut my losses short, and never buy another Apple product every again.
As a note
by rapier1 September 14, 2007 12:16 PM PDT
A $100 credit is actually a bit different than getting $100 back.
First off, it brings people back into the store with the express
purpose of buying more. Many people will typically spend more
than the $100 credit. And $100 in credit actually costs Apple less
than actually giving people $100 cash.
Just Redeemed
by killthrash September 14, 2007 10:09 AM PDT
I just got an Apple Airport Express base station on the $100 apple credit (Apple Education discount at online store).

8GB iPhone+Airport Express for $600?

We still love Apple, Inc. and Steve Jobs. I just wish we were just as concerned about the War in Iraq as we were about the $200 price drop on the iPhone. What a sad country we are.
Reply to this comment
Well Said
by hdtravel September 14, 2007 10:49 AM PDT
So very well said.

People are more excited and concerned about their stinking $200 than thousands of folks killed in Iraq. Indeed sad !!
Where does it say September 19???
by planetboom September 14, 2007 10:23 AM PDT
I just retrieved my iPhone credit. However, in the details to get the
credit, Apple's site says claims will be taken until Nov 30,
September 19. In fact, no where on the page is the number 19
listed. Who wrote this article?
Reply to this comment
Read it again
by bbroxter September 14, 2007 10:33 AM PDT
"Devices purchased between August 22 and September 4 are eligible to get $200 refunded because of Apple's price protection policies. To get the refund, however, claims must be made by September 19. "

If you read it again you will see the September 19 date is for people who get the $200 price adjustment not the $100 credit.
If Apple cares so much, why did it wait until after everyone complained?
by Zoltron September 14, 2007 10:36 AM PDT
Can someone explain why if Apple cared so much, they waited until after they had a revolt of early iPhone adopters on their hands before giving the $100 rebate? Looks more like damage control to me...
Reply to this comment
Ill informed consumers
by mikegraham September 14, 2007 11:05 AM PDT
I seem to remember buying a new Compaq lo those many weeks ago, I think it was sometime in July. And then, the following week, the price dropped. Horrors upon horrors, a price dropped on a piece of electronic equipment.

The people who cry and whine when the price on a brand new piece of technology drops are moronic. Thats what happens, you pay for the honor of being one of the first to own it. If you buy a new car in July and they drop the price in September to sell the old models do you call the dealer and whine about it? When you buy fresh baked goods in the store and the next day they cut the price to sell it - do you whine about that? Probably not. So really, get over yourselves. Apple owes you no explanation nor do they owe you a refund, nor do they have to even pretend to care about you.

Its not damage control..its falling to the whims of a bunch or sorry whiney consumers who think they are owed something. Its sad that Apple did this, because it wasn't the right thing to do.

I own an iPhone, and I will not even bother with the process of claiming this rebate. I bought mine, just to say I had one. Not to cry because my neighbor got his for less money.
View reply
Like some cheese with that whine
by Nodack September 14, 2007 11:23 AM PDT
It is damage control. Apple had no idea they had so many crybaby
whiners that bought their iPhone. They are trying to make them
happy even though they shouldn't bother, because they won't
appreciate the gesture anyways as Zoltron shows.

Zoltron, sell your iPhone to somebody that deserves it and go buy a
Razor PLEASE!!!
View reply
Re: after everyone complained?
by imacpwr September 14, 2007 1:44 PM PDT
I didn't complain, I LAUGHED..!!
NEVER be the first on your block to own something new.. you'll pay
through the nose for those bragging rights..!!
Egregious and Outrages! Apple is out!
by theiway September 14, 2007 12:15 PM PDT
Have you guys read the fine print? I am so outraged that you cannot redeem the credit for iTunes. I have nothing else to buy at Apple as I don't own a Mac and already puchased all the accessories I need for the iPhone.

I am very close to making a decision to cut my losses short, discontinue my iPhone service and switch to another phone with AT&T. I will sell my iPhone at a loss but cut my losses short, and never buy another Apple product every again.

This is outrageous and completely inadequate way to compensate existing iPhone owners. I am done with Apple.
Reply to this comment
Um, ITMS Music Cards...duh!
by alawaiblowfish September 14, 2007 12:32 PM PDT
Yeah, you can't DIRECTLY use your store credit on ITMS, but you
can use the credit to purchase an ITMS card for $100 (im affraid
you'll still have to front for the tax). Of course, if you don't want
your credit anymore, ill gladly take it off of your hands :) .

I plan on using my credit for updating to leopard, for only $30 +
tax
No iTunes Gift Cards either
by theiway September 14, 2007 12:38 PM PDT
Read the fine print. You can't buy using iTunes or buy iTunes gift card, or any other gift cards. So this so-called credt is completely useless for me.
Reply to this comment
iphone credit got your goat?
by CaddyWhompus September 14, 2007 1:09 PM PDT
Wow...did someone at the Apple store hold a gun to your head to force you to buy the phone at full price? I bought two phones (8Gb) at full price and I'm pleasantly surprised that Apple is offering ANY rebate. Jobs is right, technology prices are frequently driven down quickly after a product--that's life in the 21st century. Why don't you sell your iphone and buy two tin cans and a string?
Reply to this comment
Eh...
by theiway September 14, 2007 2:16 PM PDT
Absolutely right (despite the stupid way you put it). So Apple has no lost 4 users (me and my family members). We are discontinuing the iPhone service at AT&T, and selling the iPhone. Would you like to make a bid? I am done with Apple.
View reply
And still they whine
by edgedesign September 14, 2007 4:30 PM PDT
It's ridiculous some early iPhone purchasers are still whining - now
about the $100 credit.

First, if you didn't think the iPhone was worth $600 then why did you
ever even buy it?

Second, early technology adoption always comes with a risk (see:
Betamax, CD/DVD burners, Blu-Ray DVD players, etc.) so buyer
beware.

Third, Apple recognized their price reduction ticked off some iPhone
owners and tried to make amends by offering a $100 store credit. Not
many other companies would have done this. Please provide similar
examples if you know of any.

Sure, $100 cash or $100 iTunes credit would have been nice, but Apple
decided not to go that far. If you cannot think of anything you want
from Apple right now, you can hold onto your credit for a later
purchase. Most those who purchased an iPhone will want some other
Apple product at some point in the future. You can also use it towards
the purchase of a gift for a friend or relative.

Also, I would venture to say that some of the people posting their
complaints in a C|net forum are actually just Apple haters or trolls who
do not even own an iPhone. Getting so irate over this issue is very
narrow-minded.
Reply to this comment
Shameful at best
by theiway September 15, 2007 8:17 AM PDT
It is well documented that the quick drop in the iPhone is unprecedent, and was probably a set up from the get go. Anyone who is familiar with product cycle on technology will attest to the fact that this rapid price reduction smell very suspecious. Wake up and smell the coffee and realize how Apple set us all up.

I can tell you that up until the policy announcement, I was ok with it. But then I found out that the store credit is quite limited. My family has 4 of these and all of us have bought all the accessories to the iPhone, and have nothing else to buy at the Apple Store (nor would we want to after this complete disregard to consumers). So in essence, the so-called rebate offers nothing, no rebate to us and many like us. This is outrageous!

For anyone to defend Apple with such absurd comments about product cycle and who is a technophile leads me to believe that they either work for Apple or are Apple shareholders who cares more about your own pocket that treating consumers right. Shameful at best.
What?!?!
by crue24 September 14, 2007 5:04 PM PDT
For all of those whining about the price drop and the credit, saying that they will never buy another apple product and that they are going to discontinue the service and sell the phone I am POSSITIVE you are not technology people! Because anyone in the field and knows technology knows that this happens and I'm sure it's not the first time you've been caught holding the short end of the stick. If you're on the cutting edge, buying stuff as soon as this comes out, it's no shocker, happens all the times with all types of vendors and all types of technology. Did any of those vendors or stores offer you ANYTHING at all to make up for it, regardless of damage control or anything else? NO!

For those of you who are not technology people. Have you ever purchased a car and then seen dealer rebates or price drops in the weeks to follow? Go back to the dealer and ask for the rebate on a car you already purchased and see what they tell you.

Ever buy a TV or stereo equipment or TV or clothing and it goes on sale within 30-60 days, after the price quarantee or return date? Did you go back to the store and try to get a credit? What did they tell you? I bet you didn't get ANYTHING.

Consumer awareness, buyer beware! If you are an early adopter, you run a high risk of having a price drop. If you are a late adopter you run a high risk of of something newer, better, cheaper coming out.

It happens with ANY product and ESPECIALLY in electronics/computers. It's the nature of the beast.

Now there's different theories to the reason behind the price drop with most saying that they weren't selling enough. I have a different opinion and anyone with any education in economics will understand it. Although the hype was huge behind the iPhone apple was entering a new and very competitive market. Lots of people said they would buy it, but who knows if they will actually lay down the dollars. If you're not selling quantity then you need larger profit margins. If the product does very well, and VOLUME permits, you can sacrifice margins to increase market share, (aka units sold) and actually make more money by charging less money, not to mention more customers who if they like this product may buy other products.

Regardless of the cult like addiction of some Mac faithful, Apple is NOT a cult, it's not a "government for the people, by the people" with the people's best interests in mind. It is a COMPANY who has to worry about profitability and market share. Apple tries to achieve that through easy to use, quality products at REASONABLE prices. They are not cheap. They are not Dell. You can't buy a mac with cheap parts for a cheap price, (like with a Dell). You can only get different levels of performance all with quality parts. So if you do a true comparison based on parts, you will find that apple is at least comparable and sometimes cheaper than PCs based on the specs.

The iPhone is comparable with nothing, was a new, cutting edge product. You must expect to pay a premium ESPECIALLY as an early adopter. If it does well and becomes mainstream, you can't blame them from changing the price from exclusive to expensive.

Get real people.
Reply to this comment
nonesense par excellence
by theiway September 14, 2007 8:00 PM PDT
Early adapters should not endure drastic changes so early in the
product cycle. 4gb users now have a vastly devalued device that
is not only reduced greatly in price, but also discontinued. Apple
set everyone up. That is not whining, that is objecting to
deceptive practices. Quick product cycles are expected in
technology, but drastic changes less than 2 months after release
is egregious. Apple is not obligated to so anything, and the
consumer can choose to avoid geeting Apple products.

The so-called store credit does not provide any value to
someone who cannot use it for iTunes and someone who
doesn't own a Mac and bought all the needed iPhone
accessories. I would rather cut my loses short and rid my life of
Apple in the face of this outrageous conduct against existing
iPhone owners. Join me in fighting Apple who has become more
evil than Microsoft. Join me and others.
Reply to this comment
Good luck
by crue24 September 15, 2007 1:16 PM PDT
...with your fight against Apple. I'm sure they will soon fall because of your moronic crusade.

Your 4GB iPhone somehow isn't as good as it was before the price cut? My neighbor still loves his, works the same as it did before the price cut.

And I enjoy my 8GB and I'll be looking for the gen 2 device to come out hopefully as soon as Christmas time...
Apple no MS
by edgedesign September 19, 2007 8:47 AM PDT
You obviously didn't follow the antitrust cases against Microsoft.
Apple isn't the evil monopolist MS was and they surely deliver
better products.

Posted via iPhone ;)
bs by the ton!
by theiway September 14, 2007 8:13 PM PDT
clearly you are not a technophole nor do you have any
knowledge in technology pricing. It is well documented that the
quick drop in the iPhone is unprecedent. For you to defend
Apple with such absurd comments about product cycle and who
is a technophole leads me to believe you either work for Apple
I'd you are a shareholder who cares more about your own
pocket that treating consumers right. Shameful at best.
Reply to this comment
Other providers just as guilty
by Open Outlet September 14, 2007 10:31 PM PDT
Other services are just as guilty, that is the way of cell phones. I
bought my Sprint Samsung A900 in December of 2005 for $200,
within 3 months it was $79.99. Just as bad. What about the first
generation Moto Razr owners who shelled out somewhere around
$300 only to find out that the phone would quickly be sold for
hundreds less, or for free in many instances. It pays to wait with all
cell phones.
Reply to this comment
Unprecedented Rapid Price Reduction
by theiway September 15, 2007 8:58 AM PDT
It is well documented that the quick drop in the iPhone is unprecedent, and was probably a set up from the get go. Anyone who is familiar with product cycle on technology will attest to the fact that this rapid price reduction smell very suspecious. Wake up and smell the coffee and realize how Apple set us all up.

I can tell you that up until the policy announcement, I was ok with it. But then I found out that the store credit is quite limited. My family has 4 of these and all of us have bought all the accessories to the iPhone, and have nothing else to buy at the Apple Store (nor would we want to after this complete disregard to consumers). So in essence, the so-called rebate offers nothing, no rebate to us and many like us. This is outrageous!
Has anyone bothered to actually read the terms and conditions?
by Lee in San Diego September 15, 2007 12:25 PM PDT
Go to Apple's web site and read the rebate/credit terms: http://
www.apple.com/iphone/storecredit/

"Customers may redeem their store credits only for qualified
purchases directly from Apple at an Apple Retail Store, the Apple
Online Store, or Apple Telesales (1-800-MY-APPLE) in the
United States. Customers may not redeem their store credits: (1)
at any iTunes Store in the United States or elsewhere, (2) Apple
Store locations outside the United States; (3) at Apple resellers;
(4) for cash; (5) to purchase Apple Gift Cards, or,iTunes Store
Gift Certificates, to give iTunes Store content as gifts, or to
create iTunes Store allowances; or (6) as payments on Apple
accounts. "

I am reading that to mean, that among other conditions, you can
not use the credit directly at the iTunes store or to purchase an
"iTunes Gift Certificate." An "iTunes Gift Certificate" lets you gift
iTunes music via email.

If I am interpreting the conditions correctly you can purchase a
pre-paid iTunes Card at an Apple Store and then use that get
iTunes.

Has anyone tried redeeming their credits for an iTunes card? If
so and you were denied can you offer up some proof?

From what I am reading in the blogosphere the people
complaining the most about this are those who do not have an
iPhone or are journalists looking to get hits.
Reply to this comment
Apple confirms - $100 store credit EXCLUDES iTunes
by theiway September 15, 2007 1:18 PM PDT
I wish that you were right but I spoke with an Apple customer
relations rep in 2 occasions. Apple confirms that the $100 store
credit CANNOT be used to purchase any iTunes related
products, not songs, movies, tv shows or any iTunes cards. That
is outrageous! There are many people out there that will not
have anything to buy at the Apple store, rendering this so-called
credit useless. Apple strikes again!
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