Apple Co-Founder Thinks iPhone Price Cuts Reflect Inventory Problems

Apple (AAPL) founder Steve Wozniak is off-message with respect to the rationale for Apple's iPhone price cut:

Stephen Wozniak, the co-founder of Apple, told The IBC Daily that he thinks Apple's decision to drop the price of the iPhone by up to 50% only two months after it went on the market was "an accidental error" and that he "hasn't talked to anyone who thinks it was a good idea."

The man who is often called the "other Steve" in reference to his more high-profile friend and Apple co-founder Steve Jobs, Wozniak said he "feels badly" about the early price cut because of all the people who had only recently shelled out $600 for the new iPhone. "My opinion about why they did it is that they have a large inventory and they are set up to build more than they have sold by a bit and they have to keep things moving," said Wozniak. "It happened to every technology product with the price coming down - but you don't expect it to be two months, you expect it to be at least a year."

Wozniak is a loose cannon -- this is the same guy who raked Apple for adopting Intel (INTC) chips, and recommended the company sell off iPod -- so I don't read ever-much into this, but it's still going to get some people's attention.

[IBC via Eric]

Comments

[Tom B:]

He's a great guy, but your assessment is correct: loose cannon. He knows nothing about business.

I am envisioning lots of NBC execs soiling their pants as they ponder how many iPhones and "touch" iPods will be springing up in every coffeeshop in America, with happy people downloading all kinds of non-NBC content.

2007 Sep 11 09:41 AM

[Jahangir Naina:]

The Woz is waaay over rated, and way past his shelf life. He may have been an good engineer in the past. But he is just that, a meat-and-potatoes type engineer, who has done some decent work. But he is not a visionary in the same league as Jobs, and neither is he an astute observer of technology trends or business in general. Best to ignore this clown.

2007 Sep 11 12:09 PM

[rlh:]

Wozniak will talk to anyone who will listen to him. He is a meat and potatoes guy with a filet bank account. Now he thinks what he has to say is somehow more important.

2007 Sep 11 12:46 PM

[smitty:]

Perhaps the fact that Woz was so wrong on Intel and selling off the iPod means he's wrong here, too. Woz is a big cuddly teddy bear of a geek, but he's not involved in Apple's business decisions as far as I know.

2007 Sep 11 01:17 PM

[Michael Bri...:]

I believe that AT&T was aware they were going to have serious activation problems if Jobs released iPhone at $400. So he released iPhone at $600. AT&T still had activation problems, but they were considerably less than what they were going to be at $400. They knew they were going to sell a whole lot of iPhones one way or the other. I'll get one when iPhone works with the faster data network while still having some battery life. There must also be automatic protection against $4800 phone bills due to automatic background data network accesses in expensive roaming areas. I think Apple must consider the global nature of their customers and allow sensible policies regarding network access, regional limits for primary iPhone service is counterproductive. Right now, v. nice phone, toy service.

2007 Sep 11 01:30 PM

[deepkid:]

If Woz really did say this, wtf? We deeply appreciate all that you've done for technology but stfu.

2007 Sep 11 04:04 PM

[reddog:]

Well of course he's right, you don't have to be a genious or have inside knowledge to have this opinion. They cut the price because they want to sell more. Apple is among the shrewdest when it comes to pricing and they don't leave any money on the table. They rationalize the price cut by saying they want to assure a gangbuster holiday season but there is more to it than that.

2007 Sep 11 08:32 PM

[Spunkmeyer:]

After learning that he's dating Kathy Griffin, I question his judgement on many things.

2007 Sep 11 08:57 PM

[Andrea Di S...:]

I just think we should start avoiding quoting Wozniak and listen to his blah blah that 90% of times has no sense at all.

His name will always be remembered in IT history but please Woz ...

Andrea

2007 Sep 19 07:56 AM