• New York Times, Friday, September 7, 2007 12 PM

As many analysts expected, Apple got a hefty dose of consumer backlash yesterday for announcing on Wednesday that it was chopping its iPhone price by $200, a little more than two months after its launch. Understandably, early-adopter iPhone owners were irate that they'd overpaid for the device by one-third of its original cost.

Apple, which "has made few missteps over the last decade," acknowledged that it had angered its core customer base, and responded with a $100 store credit for early iPhone buyers. The New York Times called CEO Steve Jobs' letter on Apple's Web site "a remarkable concession." Another said he considered making shirts that read "I was an iPhone beta tester." Yet another said: "My love affair with Apple is officially over."

Some Apple customers were also rubbed the wrong way by the lecturing tone Jobs took with users in his letter. He defended the price cut by talking about the risks and rewards of buying any device in the fast-changing technology business. Sure, intense competition means that prices for new devices always go down--but in two-and-a-half months? And from Apple?

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