Apple gets design…apparently they don’t understand psychology quite as well

A funny thing that $100 rebate. Was is surprising that people got really pissed off when Apple dropped the price of the iPhone $200 after two months when there wasn’t a reason to except for maximizing profits?

Here is a wonderful analysis from Steven Levitt. I think he’s dead-on (I’m not an economist but it makes sense). The biggest question on my mind that he brings up in the article is why the hell did Apple go halfway? If they were going to offer a coupon why didn’t they offer $200 intead of $100? As he points out the cost to them is minimal given that the coupons are only for use on other Apple products. Many of those would certainly go unclaimed.

How can a company that gets it so much with product design be so god-awful stupid when it comes to customer care? It really blows me away that someone thought the timing of this price drop was good. There has been no indication that parts prices suddenly dropped so much to warrant this.

Either wait until the next generation is out or do better for the early adopters. Wow.

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