The iPhone was not a really affordable phone in the beginning, but for the features it offered the price was almost cheap. The iPhone retail price drop of $200 therefore was a big surprise for many people. People with an average income who purchased the iPhone at the original price were extremely upset by the price drop. They can’t understand why such a huge drop in the iPhone’s price was necessary and wonder about the reason Apple had to do so.

Why the price for the iPhone was decreased

The iPhone was already selling well before the price cut, but Apple’s aim was to increase the sales even more which led to the decrease of price. People who paid the original price will be pleased to find out that the reason for the decrease was not because of problems with the device or faulty production, but simply to increase sales and to push the iPhone’s popularity even more. Thereby the iPhone price drop benefited both consumers, who now get an incredible phone at a reduced price, but also the Apple Corporation itself as the amount of sales will increase sharply because of the price drop.

Many people could previously not afford the iPhone but were longing to have one. Those people can now afford a hi-tech phone. The average middle class consumer is now much more likely to get interested in the iPhone and Apple can therefore get greater market share in this consumer group. After the price cut even people below average are better able to enjoy the luxury of the multifunctional device.

Was the price drop a good move?

Some people are arguing that the iPhone price drop was essentially not really a price drop. If you take into account other factors the question is if consumers will really feel the reduction in price or if it is only a gimmick the Apple company has pulled out their hats to outsmart consumers with a low income that are interested in the iPhone. In most cases you will be paying the $200 you saved to your network providers anyway.

As the drop in iPhone prices was a very hasty decision some people say that it had many errors like the one mentioned above. People are can’t agree whether they believe that Apple has considered the fact that if you obtain the iPhone from a service provider you actually save very little.

Secondly, the iPhone drop came very fast and was a surprise for many, which makes people question the software, hardware and overall performance of the phone. The untactful way in which the price cut was handled confused consumers as to the life cycle of the iPhone. They now feel unsure whether it is economical to purchase the phone now, because they feel another price drop for Apple phones could happen again any week.