Apple slashes the price of the iPhone and provides it to the masses?
Today I heard that Apple slashed the price of the iPhone by $200 (US). The WSJ indicated that Jobs appologized to the early adopters of this product and gave them a $100 (US) Apple Store credit. Obviously a $399 (US) mobile devicel appeals more to the masses than a $599 (US) mobile device, but how does this impact how products are valued in the market place?
What does this mean for intuitively designed products? I still believe people will pay a premium for intuitively designed products? Arguably, the iPhone is one of the most intuitive mobile devices on the market. Does dropping the price of this intuitive product mean that the premium for other–all–intuitive products will fall, as well? Do intuitive and easy to use products still have market advantage and warrant a sizable premium?
What are your thoughts?
