How much is Apple loyalty worth? About $50M, says Jobs
Jason O'Grady reports that Steve Jobs will be giving iPhone early adopters a little bonus: $100 of in-store credit. Many customers who bought their phones when it first came out two months ago complained about missing out on yesterday's $200 price cut. In an open letter Jobs responded:
We need to do a better job taking care of our early iPhone customers as we aggressively go after new ones with a lower price. Our early customers trusted us, and we must live up to that trust with our actions in moments like these. Therefore, we have decided to offer every iPhone customer who purchased an iPhone from either Apple or AT&T, and who is not receiving a rebate or any other consideration, a $100 store credit towards the purchase of any product at an Apple Retail Store or the Apple Online Store. Details are still being worked out and will be posted on Apple's website next week.
Some estimates put the number of customers eligible for the credit at about half a million, meaning that Apple is expected to take roughly a $50 million charge for this gesture. Given headlines like "Curse you, Steve Jobs!" just a few hours ago (before the announcement), it seems like a small price to pay to keep the faithful happy. Bless you, Steve Jobs.