Steve Wozniak: iPhone Price Cuts Reflect Inventory Problems

Apple 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 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]

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Relatedly, more here on how most analysts are calling for AAPL stock to bounce back quickly from the current weakness.

Related posts:

  1. Apple Cuts iPhone Prices — Sort of
  2. Steve Jobs: “The Old iPhone”
  3. To All iPhone Customers: Whoops!
  4. iPhone Data Price Plans
  5. Buy the iPhone Hype, Sell the iPhone Launch

Comments

  1. dutch says:

    I don’t think you’re a loose cannon if you tell the truth. This is econ 101. If you have too many of something you cut the price. hooray for woz. It’s absurd to parrot the spin of Job’s rationale, which is to “go for it”. If that were true he would have priced it aggressively from day one.

  2. Klaus Hander says:

    Steve Wozniak a “loose cannon”?
    Wow, Paul, how’s the air up there on Mount Olympus?

  3. Bob says:

    You have opinions too, does that make you a loose cannon?….yeah your right Steve is a loose cannon (and so are we all)…

  4. For sure: Paul Kedrosky, a Proud Member of the Loose Cannon Club :-)
    Mind you, I maintain that Woz is even more of a loose cannon than I am. Calling for Apple to drop the iPod product line in the midst of the device helping drive AAPL shares to their highest levels in history is card-carrying stuff.

  5. red5 says:

    Woz is my hero. I learned to program on my apple II (my 1st computer) and never forgave Jobs (apple) for dumping the product that made the company. By doing so they dumped large number of young developers like myself, who unwilling turned to IBM Compatibles and Microsoft. Reason being financial, not everyone at that time could afford the “Yuppie” Mac.