John Paczkowski

Recent Posts by John Paczkowski

And Here's The $100 You Just Gave Me, Plus An Extra $50. Thanks, Steve!

applecredit.jpgThe $100 iPhone credit Apple issued this morning won’t go a long way in the Apple Store, but it will likely go a long way in showing the company’s goodwill toward peeved early adopters who paid $599 for the iPhone only to see its price drop to $399 a few months later.

Which makes it not just good public relations, but a shrewd effort to drive more business at Apple’s stores as well. Because many of those $100 credits (which cannot be used on iTunes) will likely be used toward the purchase of products costing more than $100. And those that are used on products costing less probably have higher margins.

“If they spend less than $100, they get less out of the credit,” Ezra Gottheil, an analyst at Technology Business Research, told PC World earlier this week. “I suspect some of Apple’s lowest-price items, like the Shuffle and accessories-like cases, have much higher margins than say, the MacBook. And if they spend more than $100 [at the store], Apple is getting the profit on the purchase beyond $100. Long term, this is a big win for them. With the unqualified apology enhancing the effect of respecting the customers, it’s well worth [the $25 million]. It may be the best screw-up since ‘New Coke.’ “


Twitter’s Tanking

December 30, 2013 at 6:49 am PT

2013 Was a Good Year for Chromebooks

December 29, 2013 at 2:12 pm PT

BlackBerry Pulls Latest Twitter for BB10 Update

December 29, 2013 at 5:58 am PT

Apple CEO Tim Cook Made $4.25 Million This Year

December 28, 2013 at 12:05 pm PT

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I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik