Rush to Return iPhones?

Apple’s announcement that it has cut $200 off the price of the 8 Gb iPhone model has sparked speculation that customers who paid full price for the product may storm the retail stores seeking refunds. Apple re-priced the 8 Gb model from $599 to $399 just two months after the iPhone’s introduction, and will phase out the 4 Gb model entirely. The Apple stores have a price reduction policy that allows iPhone buyers who made their purchase within the last 14 days to obtain a price difference refund. Buyers of the 4 Gb model aren’t covered by this policy, but could be covered by Apple’s regular 14-day return policy, which includes a 10 percent restocking fee. Interestingly, a 4 Gb iPhone owner would receive $449.10 back under this policy, enough to then purchase a new 8 Gb model at the new $399 price and have money left over. Anyone who purchased an iPhone more than 14 days ago apparently has no recourse to obtain a refund. On the other hand, Apple has been selling refurbished 4 Gb models for $299 from its on-line store. [Within 24 hours Steve Jobs offered a $100 credit to early iPhone buyers as consideration for the price drop.]