Dongmei Li of Queens, NY, is so angry at Apple for chopping $200 off the price of the iPhone, that she filed a lawsuit seeking $1 million in damages. She claims Apple violated price discrimination laws when it slashed the price of the 8-gigabyte iPhone by a third, from $599 to $399, within two months of the June debut.
Apple lowered the iPhone's price on Sept. 5 and also said it would stop selling the $499 4-gigabyte model. Many early customers who paid full price didn't expect a reduction so soon, and complained.
Apple issued an apology the next day. Under its return policy, Apple refunded the $200 difference for those who bought the phone within 14 days of the reduction. And in a move to make peace with those who purchased the higher-priced phone before that period, the company offered a $100 credit at Apple stores.
According to Li's lawsuit, the price reduction injured early purchasers like herself because they cannot resell the product for the same profit as those who bought the phone following the price cut.
Li purchased a 4GB iPhone for $499 and alleged that owners of the 4GB model were given less favorable terms than those who bought the 8GB model at the premium price, according to the lawsuit.
The lawsuit also names AT&T (formerly known as Cingular and SBC), the US carrier for the iPhone, and alleges the two companies' mandatory two-year service contract for the iPhone constitutes unfair business practices. (info from The Associated Press)