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An angry iPhone buyer is suing Apple for $1 million (£490,000) after the company slashed the price of the device by $200 only 68 days after its US launch.
Dongmei Li, of New York, who waited "for hours" to buy a 4GB version of the iPhone in July three days after its debut, is accusing Apple of "price discrimination, underselling, discrimination in rebates, deceptive actions and other wrongdoings," according to a filing by her attorney, C Jean Wang, of Wang Law Offices.
Apple cut the price of the 8GB model of the iPhone to $399 from $599 last month, triggering an outcry from consumers who had stumped up the higher price for the much-hyped gadget.
At the same time it phased out the lower-specification 4GB model.
Under an existing return policy, Apple refunded the $200 difference for those who bought the phone within 14 days of the discount.
Later, in a bid to make peace with irked early iPhone adopters, it offered a $100 credit to purchasers at Apple stores.
However, according to Ms Li’s lawsuit, filed in the US District Court, Eastern District of New York, the discount “injured” early purchasers such as herself because they cannot resell their iPhones “for the same profit as later purchasers”.
The high-profile iPhone has proven a magnet for lawsuits – some with more apparent merit than others – since Day 1.
Only hours after Steve Jobs unveiled the gadget in January, Apple was sued by Cisco, which claimed that it owned the “iphone” brand. The two technology companies settled out of court.
In August Herbert Kliegerman filed a class-action lawsuit in New York State Supreme Court, claiming that the company had misled consumers.
He filed the action after being hit with a $2,000 bill for roaming charges when he used his iPhone outside the US, which he claimed he was told would not be imposed.
Two other lawsuits making their way through US courts contend that users cannot change the iPhone’s battery.
Ms Li's filing against the iPhone reasons that "market conditions did not require Apple to change its price”.
It adds: "iPhone was selling very well because Apple's stocks were increasing since August 16, 2007, and rose as high as $144.16 on September 4, 2007, the day before Apple announced that it was cutting the price of iPhone."
Announcing the $100 credit note last month, Mr Jobs, the chief executive of Apple, acknowledged that his company had failed to look after iPhone customers.
He said on the Apple website: “Even though we are making the right decision to lower the price of iPhone, and even though the technology road is bumpy, we need to do a better job taking care of our early iPhone customers as we aggressively go after new ones with a lower price.”
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grow up miss Li, you should welcome price cut, it makes iphone affordable to other customer. if you want to buy at low rates wait for right time, if you want return on invested go put your money some where else like stocks
siva, Bangalore,
$600 for a cell phone? Anybody dumb enough to spend that (and line up overnight for it) would have to be an "I-diot." Maybe Apple should be sued for ripping off the feeble minded!
Jon Barnard, edmonton, alberta canada
why would I want a lousy windows based phone? Had one and it sucked. The iPhone rocks. Sorry if you can't afford one.
Gary m, miami, USA/Florida
Shame on the lawyer for taking the case on. Did she have to ask many?
Victoria, Frankfurt, Germany
I am in the same boat as miss Li.
I bought my 4gig the day they were released.
I love my phone. If one is buying these phones to sell three months down the road at a profit... Then they are just plain stupid.
I appreciate the 100.00 credit, but Apple owes us nothing. They clearly do value their customers, look at their products!
Grow up Miss Li and get a life.
William Albrecht, lake charles, USA,Louisiana
I would only find this funnier if apple had have dropped the price the day after the wait all night to queue nutters had all gone home.
If they want it that badly ....
James, Reading, UK
This is beyond stupid! People that are complaining about the $200 price drop were not complaining when the camped out for 3-4 days prior to the launch and were more than willing to pay $600 at that time. These people are just bitter because now their own friends are buying the same product for $200 less and they look like fools! Welcome to technology, were things change and prices drop overnight. That's the truth of it, learn to live with it!
Vishal, Fairfax, Virginia, USA
"This is like saying "What the heck, McDonalds is now selling their BigMac's for 99 cents! I bought mine for $2.59 last week. I am an injured consumer give me a million dollars!"
Yeah, but I wanted to resell my big mac in a year and now it's
worth a buck sixty less! A million dollars isn't enough recompense!
Adam, Scottsdale, USA/AZ
Buyer Beware!
Brad, Denver, USA
I think if you are stupid enough to know that apple always changes prices and rereleases things at lower cost that you deserve exactly what you got. Practice some self restraint and do your homework people and this sort of thing won't happen in the future.
Meghan, Dana point , CA
Just buy a Windows mobile device. They have phone, mp3 player, touch screen, camera, slide-out keyboard. use the internet for free with many ISP packages. And the handsets are often FREE.
Simon, Gravesend, UK
people...wake up! apple sucks...why would u even want to use this stuff?
jr, milwaukee,
It's a lot to pay for a toy.
Frank Upton, Solihull,
Frankly with the Ipod/Itunes restrictions and what now is becoming the great I-phone rip off I believe Apple have now become lower than Microsoft in the trust stakes
Bob Bobstien, Spittle, Arkansas
After reconsidering, I believe that if she has found Apple has broken some actual laws and resorted to some unsavory business practises, and if she has the nerve to take on Apple, and if she is in a position to win against them, I will be completely in favor of any and all action against Apple. In spite of whatever anyone thinks of her claim and so on, she should be supported in a crusade against the behemoth.
Randy, Winnipeg,
Clearly you missed the point, Paul. Re-read.
Clarkson, Seattle, WA
So the people supporting this woman and her crazy lawsuit don't believe in capitalism or free trade? That is the simple question. She makes America and it's legal system look like the infantile fools that they clearly are.
G Robson, Ayr, UK
how ridiculous
tom, bham, cityland
I'm not a big fan of Apple either, but they should be able to sell iPhones, iPod's or whatever, at the price they want to. If you want the latest technology, and are prepared to pay for it, then do so, but 'cutting edge' technology tends to come with 'cutting edge' prices. It's often better to wait until the first price drop.
Will, Essex, UK
It's the whole concept of economics "The amount of money you spend on something depends on how much it means to you" and if it meant waiting inline for fifty hours and spending $500 so be it. But dont go whining cause 60 days later the price dropped. After all..... you did get it 60 days sooner than the people who got it after the price dropped. A complete waste of the courts time.
James, Portland, OR, U.S.
A 200 cut on a 600 dollar item is a 30% Drop in 60 Days. I bet you would sue your stock broker if he gave you that kind of return on your investment. I-Phone buyers were not buying a risky telcom stock, this was a product of the future and the price should not have declined so rappidly. This is totaly inconsistent with Apples prior product pricing and release strategies. I bought the first ipod when it came out for 499, the price point on the first ipod remained at 499 for almost 2 years, before they introducded the next generation.
Shafiq Akhtar, New York, NY
All new technology is more expensive in the early days and months. Thats the premium you pay for new tech. When the PlayStation was first released in Australia it was selling for close to $1000, why? cos its new.
It boggles the mind that people don't understand this concept, or maybe she just wants to make a quick buck!
She complains she cannot resell the iPhone at the same profit?? how the hell are you gonna make a profit by reselling it anyway? The iPhone is not an investment!! if thats what she wanted buy Apple stock, but then again she is so stupid she would probably try to sue when the share price drops!
OBL, Brisbane, Australia
Great, clog up our legal system with more frivolous lawsuits. You're "injured" because you can't sell your iPhone for the same profit? what the hell does that mean? This is absolutely ridiculous and is a big reason that our legal system is a joke of the world. THIS IS THE PRICE YOU PAY FOR GETTING YOUR DEVICE BEFORE EVERYONE!!! NOW SHUT UP AND MAKE YOUR CHOPPY WIFI CALLS!!!
m, Blasterille, IL, USA
Uh... welcome to the free market. If demand is high the price is high, if demand goes down the price goes down. If the CEO of Apple wants to change the price by $200 then he can... you bought it for the original $600 price right?
Welcome to Free Markets, if you buy it and the price drops suddenly then your loss... you should have done your research and waited for the price drop.
This is like saying "What the heck, McDonalds is now selling their BigMac's for 99 cents! I bought mine for $2.59 last week. I am an injured consumer give me a million dollars!"
There are plenty of other pressing issues in America such as Education, Government, Healthcare, or Social Security... why do people make such a huge amount of fuss over a $200 price drop?
Arj, Houston,
what in the world? I agree with Auckland from New Zealand and Matthews from England, Apple has every right to do what it did... and then it decided it felt sorry and gave everyone $100 at its stores... which it didn't have to do.. but your right, American courts are filled with unjustified lawsuits... no American lawyer seems to ever think of the consequences of their actions are a legal council... instead all they see is the bottom line of the dollar.. this woman should be laughed out of court.
James Amos, Kalamazoo, Michigan
What are you talking about, it always costed apple 250 dollars to produce an iphone, they merely inflated the price with all the hype.
blah, wilshire,
I think the issue here should center around the fact that Apple obviously abused it's customers as far as the iphone is concerned. First, it releases a 4GB model. A couple of months later, it releases the 8GB model and dumps it's price by almost 50 percent. THEN it phases out the 4GB model. Why didn't it release the 8GB model in the first place? A company as powerful as Apple surely has a competent marketing team. I find it hard to believe that this team could not anticipate how some customers would percieve Apple's iphone antics as some sort of rip-off. Even auto manufacturers know how to schedule the release of new models properly. True, some of these suits are ridiculous, but unless Apple is aspiring for a Microsoft-like reputation, it should be more careful with it's customer care actions. Last question, if the 8GB model is more innovative than the 4GB, why does it warrant so large a price cut?
Tony Navarro, san juan, Philippines
If this lawsuit ends up a success and Apple is found guilty, the entire computer industry will collapse; every major computer manufacturer will face bankruptcy as billions of dollars of lawsuits pile up. When a person buys a PC, they would be extremely lucky to resell it at 2/3 its price 6 months later. This is just standard depreciation due to Murphy's Law in the tech sector. I disagree with the people who are mad at Apple; Apple priced the iPhone high expecting that the hype might continue through the holiday season, and I imagine they had planned to cut the price in early 2008. However, the demand died down after the initial hype, and being that Steve Jobs's primary duty is to Apple's shareholders, he had to make that price cut early. Ms. Li is just another lazy opportunist trying to take advantage of the US legal system. It comes down to personal responsibility; If you are buying a new high-tech device on launch day, you should be prepared for the inevitable price drop.
Chris Conway, Vienna, VA
This lawsuit does not seem to have merit. They should be sued intentionally breaking unlocked devices. It is one thing if a hacked phone is ruined because of of a software update to add features and fix bug/security holes, it is quite another when the software intentionally breaks the phone for no other purpose than to keep control of something a company no longer owns. Normally, a situation like like this would be very difficult to prove, but Job's public stated he was going to fight the unlocking, and has shown motive and intent to intentionally ruin the personal property of others. The man should be put in jail for thousands of counts of felony destruction of personal property.
DaveW, Los Angeles,
HAHA! She bought it to see on ebay, and now is not going to make her 'profit' off it! Get over it lady!! Free enterprise works both ways. I'm sure if they would have raised the price she would NOT be offering money back to Apple.
Kim, pataskala, oh
this case is a joke. this stuff always happens. am i going to sue nokia? i bought thier first color phone back in 2003( i think) for 400 dollers now its free, let me go sue them for a million, NOT. get over your self. iphone is a gimmick, always was , just because you were foolish engough to pay 600 dollars for 8gb doesent mean you get your money back. Nice try lol at least you made headlines.
cody, NYC, NY
Apple should countersue for legal costs. This is obviously a frivolous lawsuit.
pk, Chicago,
I notice the only supportive comment on here doesn't provide any logic or reasoning for her proceeding with the lawsuit. 'Cause there isn't any?
People need to take more responsibilty for their own actions and decisions, and stop using litigation as revenge.
Steve, Toronto,
Is this any different than the people who were paying $30,000 over MSRP for the new BMW M5 when it first came out? It's simple business, as a product is first manufactured its production costs are high, then as the product sells more the cost goes down. Apple didn't think they would sell 1 million iphone's so quickly anyway.
Jonathan Crenshaw, Las Vegas,
A company cannot play on with the emotions and cheat people just because they are early adopters. If all companies start behaving this way they will have ridiculous prices for first 2 months because there are always going to be curious buyers who will want the things the first day. But let's not forget that even early adopters are also consumers and consumers' rights need to be protected.
Apple is just harming its sales with its escapades.
Bloomberg, LA,
Mr. Li,
I pray that you didn't purchase stocks, If you did, you might need to check the rates, I bet your lawyers fee is gone by now.
Peace & Happiness
Shady
ps I SAVED 200, YEH
tenshady, NYC,
omg Dongmei Li is an idiot. someone sue her for causing us stress and wasting our courts time and money
John, San Francisco,
haha, suing a company because it lowers the price of its products. lol. some people are crazy, its the price you pay for being an early adopter. i dont like apple or the iphone, i always thought it was very overpriced, it may seem unfair what they have done, but thats business
lee, wales,
All of these lawsuits are ridiculous. Apple can't help it if you're stupid.
Chris, Durham,
Nobody had a gun to your head to buy the iPhone. I don't believe your case has ANY merit whatsoever. Just because you have buyer's remorse does not make this Apple's fault. Suck it up man and move on.
Craig, Seattle, WA
It never ceases to amaze me off the stupidity of some people, so Li would be happier that Apple kept the iphone $200 dearer because of..........what the reputation?
If some people are happy to wait in line for hours and even days, let them, but then turning around and suing the company because it was a waste of their time
What do you expect, these lawyers have nothing else to do, plus they have nothing to lose, they win, they get a nice cut (60-80%) they lose, well Li lost the 30k retainer!!
Yogi, Sydney,
Take a look at the sheeple who got screwed in this deal... it was the lusers who fell for the marketing hype and allowed themselves to believe that it really was a magical happy phone that would bring them joy and technological bliss, largely due to the logo on it and the God-like brand behind it. It serves them right. That is why they are called early adopters, and I have more money than them.
Randy, Winnipeg,
This is rediculous. The lady was obviously upset that, had she waited 64 (or so) more days, she could have saved some dough or ended up with the superior model. Tough. If I had waited a few months to buy my Dell, I could have saved a couple hundred bucks. That's the way technology works. As far as $1m being a spec on Apple's turn-over, one million dollars is one million dollars--it's a decent amount of money.
Stephen Wright, St. Pauls, NC
Obvioulsy the person who wrote about the $2000 charge does not have an iphone. Before this software update on 9/27/07 , that allows you to trurn off the edge nework (data ) the edge date network would constantly be on, even when the phone is off, and constantly updating and downloading. I dont know about you but my cell only get charged when i use it. Even if you made no calls you would still incurr data charges for its constant updating. Hmm...think if this, Im going away and this is my ipod too, im only going to listen to my iphone on the beach, lets say you never made a call and bang you get charged $2000 out of no where, my regular spring cell doesnt work like that.
Jay, NY, NY
These people's arguments are ridiculous. It is a commonly known fact that software companies lower the prices of their products fairly soon after the release date. They are taking advantage of the hype that comes with the release of a new technological gadget. They are a company making a profit, and there is no law, nor should there be one, that prevents them from charging whatever they want for their product.
It is not Apple's problem how much a customer can resell the iphone for.
And the guy with the 2,000 dollar roaming charge. Has this man ever used another cell phone? Unless the contract he signed said "no roaming charges for out of country calls" he has no ground to stand on. It is the same for every other cell phone. Maybe he should have read the contract before he signed it.
James, Reno, NV
The grocery store lowered the their prices on some their items from Whn I bought them, I wonder if the law firm will see them for me? <G>
mike, washington, dc
I agree. Apple have the right to lower the price of the product that they own the rights for as they see fit! This shouldn't even be given the time of day in court! Only in America. However $1 million is a spec on apple's overal turnover.
Sam Matthews, Southampton, england
For the life of me, I can't seem to find in anything in the paperwork the came with my iPhone that guarantees me a certain "resell profit" let alone a price "guarantee" ........Ms Li your lawsuit is unquestionably, absolutely ridiculous.
Lea Bea, Miami,
I agree. Go buy a laptop and then go back to the store a day after thanksgiving. It will be half price. You pay to have it first. Those are the diggs. Apple did more than enough by offering it's refunds and credits. It's people like this that hamper our progress as companies become apprehensive to release new technology for fear of frivilous lawsuits. To whoever you are suing Apple, try not to ruin it for the rest of us.
Charles Ford, Birmingham, AL
She's pathetic.
Simple publicity attempt. And so far it has worked out for her.
I own my own software company, and say tomorrow I decide to lower the price of my software and not offer rebates, that is completely my decision and my right to do so.
This women is chasing after fame and fortune at the expense of every consumer. She's angry and feels foolish for spending the cash and wants revenge on Apple.
If she did win, Apple isn't footing the 1M bill. The consumers are, the pricing is designed to include such silly provisions. In the technology industry this is very common. The day you buy it, it is obsolete.
We should sue her for being stupid and negatively affecting the stock we own in Apple.
Personally, I find it rather humorous that she wants 1M from the law suit and she bought the cheap model. ;-)
L Moses, Seattle, Washington
Pretty wide paint brush you wield there, R.J. Are you so sure you know all of us?
SAR, Milton, DE, USA
ah, the american way of life, sue. Honestly I get tired of news from america, the socially, morrally and finanical bankrupt capital of the world. So they are annoyed because if they try resell the phone they will get less than they brought it for, gee, they're not very smart are they. Somewhere, there is always an american looking for a way to make a quick few million with a lawsuit., disgusting.
R. J., Auckland, New Zealand
Good for her, i am glad she had the balls to do it, hope she makes it a class action suit.
ron, solvang, ca
Absolutely ridiculous! I can't believe the audacity of this guy. Purchasing any electronic device you will automatically lose it's value. To sue a company for lowering the price on it's product is, is.. I'm just appalled by this story.
paul, oakland, ca
I wonder if his attorney gives him milk and cookies before tucking him in at night?
The only possible lawsuit this idiot could win (and still by only the slimest of odds) is to sue that crap network Cingular over the $2,000 roaming fees.
He should spend less time whining and more time reading the contracts he signs voluntarily
Inverse137, san francisco, ca
Suing for $1,000,000 when she's only out a couple of hundred? As much as I hate Apple and the iPhone anyway, this is clearly ridiculous. As to be expected from the ignorant masses.
Bill Puckering, Surrey,