Good Idea! Now find a better one.

I’m a little late commenting on this but I feel compelled to say that I disagree with the popular sentiment expressed in Lewis Green’s characterization of Steve Job’s and Apple’s $200 price drop on the iPhone.

He says the price drop means:

• The product was never worth the higher price.
• Apple screwed up.
• But maybe no one will notice if they stick the correct price tag on their product.

The iPhone was worth the higher price - People paid it. By definition, it’s worth what people pay. And this wasn’t a mistake by Apple; lowering the price will benefit them and their customers in the long run. It was a missed opportunity.

Seth Godin nails it. This price change was an opportunity to reward the early adopters by making their purchase even more exclusive.

Prices on high tech gadgets always plummet. But how often does a price drop make your earlier customers even happier?

Satisfying nearly a million customers at $600 is good.
Potentially satisfying another 10 million at $400 is better.
Convincing the first million to cheer the price drop is priceless.

Tags: iPhone, Apple, opportunity