Katie Hafner and Brad Stone, reporting for The New York Times:
Mobile phones tend to be more prone to price declines because the
pace of product introductions is faster than for televisions or
DVD players. Motorola, for instance, introduced the ultrathin Razr
phone for $499 with a two-year service contract in early 2005. Six
months later, Motorola realized it had a hit on its hands and
dropped the price to $199 in an effort to aim at more mainstream
buyers. By the end of 2005, the price was $99.
Perfect example disproving that the iPhone price cut was “unprecedented”. But, then:
Rob Enderle, president of the Enderle Group, a market research firm
in San Jose, Calif., was skeptical of the store credit.
“A $100 credit could be perceived as adding insult to injury,” said
Mr. Enderle, noting that store credits are seldom well received.
“It’s a way to make you go buy something else, and gives the company
a chance to make more money.”
Thank you for explaining what “store credit” means. The Times, of all places, should realize that quoting Rob Enderle does not add credibility to a report. (See also: The Macalope.)
★ Friday, 7 September 2007