Scott Moritz, Jackass of the Week

TheStreet.com’s Scott Moritz:

Then, in an unexpected move, Apple killed the 4-gigabit [sic] iPhone and slashed the price of the 8-gigabit [sic] iPhone by $200, to $399. Apple rarely cuts prices on products, preferring to introduce replacements and discontinue previous models.

The move will add more evidence to the speculation that the iPhone, while causing quite a buzz, may not be selling as rapidly as some optimists had expected.

There is no need for speculation. We know exactly how well the iPhone has been selling, because Jobs said so on stage today: they’re on track to sell their millionth iPhone some time this month. That’s a good number. Earlier this week the news hit that the iPhone outsold every other smartphone on the market in July.

Apple didn’t cut the price because demand is low — they set the debut price ridiculously high because demand was ridiculously high. I suspect that for the first few weeks, they were selling iPhones as fast as they could make them. Apple’s being aggressive, not defensive. (And for those of you who’ve already bought one and are pissed about the price cut, if you didn’t think the iPhone was worth $599, you shouldn’t have bought it. That’s how supply and demand works.)

(Via big-time Moritz fan Gedeon Maheux.)

★ Wednesday, 5 September 2007