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Apple Compensates iPhone Owners Irked By $200 Price Cut

Cupertino, Calif. — Apple said it will compensate earlyiPhone purchasers with a $100 store credit in response to hundreds of email messages received following the company’s $200 price drop on the iPhone only two months after it launched.

In an open letter to iPhone owners, Apple CEO Steve Jobs said every iPhone customer will receive a $100 Apple retail or online store credit. Further details will be posted on Apple’s Web site next week.

The store credit will apply to any iPhone customer who purchased a unit from either Apple or AT&T, and who is not receiving a rebate or any other consideration.

Jobs said he “received hundreds of emails from iPhone customers who are upset about Apple dropping the price of iPhone,” and that he read each one.

He stated now is the correct time to reduce iPhone pricing because “iPhone is a breakthrough product, and we have the chance to ‘go for it’ this holiday season. iPhone is so far ahead of the competition, and now it will be affordable by even more customers. It benefits both Apple and every iPhone user to get as many new customers as possible in the iPhone ‘tent.’ We strongly believe the $399 price will help us do just that this holiday season.”

Yesterday, Apple announced it would reduce the price of the 8GB iPhone to $399, and that it will discontinue the 4GB model.

The iPhone outsold every other individual smartphone in July after only a month on the market, according to an iSuppli consumer survey. iSuppli forecasts that 4.5 million iPhones will ship in 2007, rising to more than 30 million units in 2011.