Apple's (AAPL) iPhone price cut -- a short-term move to beat expectations?

Published: September 11, 2007, 10:20 am

Tags: aapl, apple, inthenews, iphone, steve jobs, stevejobs

Filed under: Consumer experience, Newspapers, Apple Inc (AAPL), Marketing and advertisingThe media expressed great confusion when Apple (NASDAQ: AAPL) announced it would chop $200 off the phone's price last week, even as the phone has sold a million copies in its first 75 days. BreakingViews has some pretty trenchant analysis of the news: The pace of iPhone sales probably got a shot in the arm when Apple slashed the price. That could lead to some jaw-dropping quarter-end figures, in line with Steve Jobs's habit of under-promising and over-delivering. The article then goes on to ask whether the price-cut makes any sense, other than as a way of beating expectations. If I were an Apple shareholder, I would be very concerned about this price cut, particularly in light of the BreakingViews column. If Apple's management is making business decisions based on a desire to beat quarterly numbers, rather than bona fide business goals, that's a problem. Toss in the options backdating scandal at

[ Full article ]

Blog link

Comments