I guess I see this as a bigger potential problem for AAPL. First, it is a clear admission that the original price point was, as many suspected, too high. Second, it is a real sucker punch to their best customers. Expect their next new product launch to get a very cool reception. None of this is news to the AAPL brass. The take away therefore must be that iPhone sales are really struggling. But who will buy now? Wait a couple more months and maybe catch another price break. I give AAPL credit for acting decisively but it's hard to put a good spin on this.
I would suspect that IPhone sales have been a disapointment, otherwise I can not imagine such a huge price cut so soon. AAPL stock has most likely topped out at this point, at least in the short/intermediate term.
Apple has refurbished iPhone for sales few weeks ago. This said how many of the sales is final. Iphone buyers are stupid anyway. I mean, if the iPhone is innovated with top of the line technologies, yes, it may worth the price. But we all know it's not the case. I can see the intention why they are doing this. So when iPhone G2 come up, there is a reason for upgrade. This has been the marketing for iPod and it works. Just add 1 features to it, and marketing as a new product. Don't have to be the first one doing it, just need marketing it well
Have you all been under a rock and not heard about the rebate that ALL early-adopter iPhone owners can get? $200 at the Apple store.
no connection between the two events. stock price is based upon the anticipated introduction of new products. the refund policy was as follows: $200 cash for those who bought 2 weeks prior to the refund announcement. all others it was $100 in store credit.