For all Steve Jobs genius in rolling out Apple's newest avatar, yesterday's discount announcement for the iPhone is his second misstep in as many months.
The first was lining the iPhone up with AT&T over Verizon and sparking a craze of hackers making headlines by "unlocking" it to work with other service providers.
Now for pricing strategy... Normally, a big price cut should put some wind in your sales as they begin to lag. But when you do it right on the heels of most of your most loyal customers jumping on your bandwagon, it could have the opposite effect. Dropping the iPhone's price by 30% yesterday looks strangely desperate. iPhoners are going to be dialing Apple off the hook with 30-day return questions.
Does Steve have an inside line on the rumors around the gPhone? If not, he's provoked enough suspicion in the minds of remaining prospective phone buyers around stability of the whole market to make them say, Whoa -- put on the brakes - I was hoping to get something for $600 that would be all-that for years, not weeks!
The Luddites are in high spirits today.
UPDATE: Steve Jobs issues an open letter and $100 credit (on another purchase) to iPhone owners today.
