• San Jose Mercury News/AP, Friday, September 7, 2007 1 PM

In a letter on Apple's Web site, Apple CEO Steve Jobs acknowledges that the company disappointed some of its customers by chopping $200 off the price of the iPhone's 8-gigabyte model, and says he has received hundreds of e-mails complaining about the cut.

Jobs said Apple will hand out $100 credits for Apple's retail and online stores to any iPhone owners who aren't eligible for a rebate under the company's refund policy. The policy covers those who shelled out up to $599 within 14 days of the cut.

Analysts said Thursday that Jobs erred by initially dismissing the gripes of people who bought iPhones early, many of whom are Apple loyalists who felt insulted they were being overlooked in the company's zeal to sell to a broader audience. But some early purchasers are taking the price cut in stride.
"It's the equivalent of having that season's handbag," says Jack Shamama of San Francisco, who was among the thousands who lined up for iPhones on the day they first went on sale.

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