Apple sugarcoats bitter early adopters

As one of the early adopters who bought the iPhone on June 29th, I was not thrilled about Wednesday's $200 price cut announcement.  But I was not miffed either. I purchased the iPhone because of the huge advancement in technology it offered. For me and other traditional early adopters, there is no price too high for that value. We would have paid anything to get our hands on the best product out there. Marketers know that early adopters, by definition, are not price sensitive.

So why was there so much backlash after Steve Jobs' announcement? And why didn't Apple's PR counsel anticipate this? I think it was because Apple didn't have a true understanding of this public. Many of the people who waited in the same line with me to buy the iPhone were not early adopters by traditional definition. They in no way resembled the group of people I stood in line with to attend an Apple store grand opening.  Not all of the people who wanted the iPhone first were motivated by the technology value it represented. The buzz leading up to the launch made the iPhone a cultural phenomenon and status symbol. So instead of a traditional lineup of geeks and Apple loyalists, there were teens, soccer moms, business people - all in line to purchase something that made them feel exclusive.  To this public, price matters.  And boy, were they bitter with Apple yesterday.

Today Steve Jobs offered some sweet relief in an open letter to iPhone customers. In it, he admits they really screwed up. And while a corporate apology is nice, money talks. A $100 refund to every iPhone customer goes a long way in appeasing geeky Apple loyalists and iPhone trendsetters alike. Apple has a powerful brand, and this approach to reputation management is exactly why. Apple did the right thing and did it quickly.