Your hypothesis that customers were ticked because others could afford our cool phone is, well, utter nonsense. I frankly do not give a darn about what other people think of the iPhone. It meets a need, and does it well - I am happy with my purchase.

I was somewhat annoyed by the price drop announcement because the price drop was uncharacteristically large, and happened uncharacteristically soon. A 1/3 price drop should normally take about 9-10 months in this industry, based on the usual factor of two every 14 months. To have it happen in two was, to say the least, surprising.

There are ways to communicate that you are charging a premium - only providing the version of the product with a 'bundle' is popular. Customers who paid extra for a PS3 are well aware of that, and aware that they are paying above MSRP. They takes their chances. Classically, though, Apple does not adjust prices this much and this fast, so customers did not see it the same as someone who lined up for a PS3 and paid a premium.

Large, rapid price drops discourage early adopters for all your products. Had Apple not acted, the people who bought early would wait just a bit longer, and these are people with serious pennies to drop.

Sending early adopters a store credit makes us more likely to adopt early again, because many of us will feel well treated. I do. (I had suggested a $200 ITMS credit, on the grounds that it would cost Apple less than a cash rebate, but straight credit is cool.)

I am quite happy with my iPhone, but I do act rationally. If Apple protects customers, then those customers are more likely to purchase if they are on the balance. If Apple does not protect customers, then the customers are more likely to wait. Apple acted wisely to protect that brand loyalty.

Scott