The iPhone

[nodeinfo|21|body|0.94241300 1194913649][inline_autoadd][image=1]Yesterday Apple announced that the iPhone price has been reduced form $599 US to $399 US. While this sounds very nice of apple, early adopters of the phone are in outrage. The phone has only been on the market for about 3 months, and for a price drop of this magnitude to happen so quickly has people asking for refunds.

This morning on the radio I heard many complaints against the price drop. Most were extremely biased and threatened AT&T to allow re-stocks and refund for the drop. This may seem like a logical idea, but I feel differently.
Let’s look at some facts:

1.The majority of the outraged buyers did not do their research before hand and bought the iPhone based on hype. Yes, the iPhone looks pretty, that’s about what I got out of it.
2.Before the iPhone was released, several reliable sources online stated that Apple’s profit margins on the iPhone were going to be 100%! This means if the iPhone cost 300 dollars to make, apple would profit 300 dollars on top of what it cost to make. While this may seem fair, keep in mind most retail stores actually price products 20-40% above cost. This in itself is a large indication there would be a price cut in the future.

With these facts in mind, let’s now view what people would like to see happen:

"AT&T charged me 100% over cost for a phone. I paid this price without doing full research and learning that Apple could easily drop the price of the phone any time they wanted. I want the difference refunded to me! AT&T should have to pay me back for my stupidity!"

Now, seeing that point of view, I’d like to finally note that most retail companies such as AT&T do not have control over what they can charge for a phone. While there is some leeway, they have to pay what Apple asks for each phone, and Apple ultimately determines the MSRP (Manufacturers’ Suggested Retail price).

Because AT&T has no say in the price drop, other than “WOO HOO! We can sell more now!”, it is not likely they will be able to refund ANY money to ANYONE unless a deal is worked out with Apple. So please, stop blaming the middle man for something that he has no control over. If you want your stupidity money back, talk to Apple. And remember, ALWAYS do your research before buying electronics.