Apple Inc. sued for price cut on Apple iPhone

Apple has been sued by Dongmei Li of Queens New York for the recently announced price cut on their first mobile phone product, the Apple iPhone.

Apple cut the price of the iPhone by USD 200 within months of launching the device. However, they did offer a USD 100 credit to early owners of the device to compensate for this cut.

Li is claiming that the company violated price discrimination laws by slashing the price of the iPhone so soon.

She is claiming that the price reduction harmed the early owners as the cannot resell the device at the same profit as the customers who bought the device after the price cut.

She had acquired the 4GB model which was later discontinued. The lawsuit interestingly also mentions AT&T which is the exclusive service provider to the iPhone customers.

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5 Comments to “Apple Inc. sued for price cut on Apple iPhone”

  1. JS | October 2nd, 2007 at 5:24 am

    I doubt they will win :/

  2. Donny | October 2nd, 2007 at 10:33 am

    Lawsuits are just getting rediculous, as an average consumer (who is not trying to sue big multinational companies for big bucks or publicity) I think the price cut is completely reasonable and I bought my iPhone in its first week of sales.

  3. matthew | October 2nd, 2007 at 3:43 pm

    I sincerely hope this turns out like david and goliath.

  4. Consumer Backlash? | October 2nd, 2007 at 7:53 pm

    Back in ‘96, Apple was a total underdog in the PC and electronics markets. It gave the impression of loving its customers and hating all things Microsoft/Intel. It stood for an elegant, easy to use, easy to fix operating system. Now, it has a dominant position in media players and is trying to dominate the cellphone market. It’s doing better on sales of Mac systems than in many years. These positions seem to have given the company a rather “cocky” attitude toward others. It’s attacked the recording industry. The recording industry fought back, giving Amazon the right to distribute music without DRM and at lower prices than iTunes. It’s shown its iPhone customers disrespect by cutting iPhone prices dramatically, probably before the early adopters who paid the big bucks even got familiar with all its features. It charges double for making iTunes songs into ringtones, which screws the consumer in favor of the recording industry. It shows again and again that its corporate creed is “We know what you want and what you need, you don’t.” Apple seems to be all about greed and arrogance these days. I’m glad I haven’t owned any of their products since about 1999.

  5. Brian | October 2nd, 2007 at 9:55 pm

    When she was forced at gunpoint to go in an Apple or ATT store and forced to buy an iPhone AND register it for service against her will, I could see a lawsuit… maybe. Nobody forced her to buy. She did it herself. She had to read that the agreements with the iPhone did NOT include a price reduction clause.
    Apple is not forcing anybody to buy ringtones. They have contracts with the copyright holders of music - often not the real artists. Apple attacked the recording industry’s requirement that music had to have DRM restrictions for Apple to sell it. Amazon gets to sell DRM free music. What’s fair?
    Whining crybabies should get a ‘time-out’ in today’s PC-speak, not a million dollars. Stupid lawsuits should have liabilities for failure to win.

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