Apple Sued For iPhone "Price Discrimination"

A New Yorker who waited for hours to be one of the first to buy an iPhone is now suing Apple, says Apple Insider.

Dongmei Li of Queens is accusing Apple of various sins such as “price discrimination, underselling, discrimination in rebates, deceptive actions, and other wrongdoings.”

Li purchased a 4GB model of the iPhone and now is upset that she can no longer resell her purchase for the same profit that someone who bought one after the price drop. She’s also upset that her phone has already been discontinued.

The $100 store credit offer didn’t placate Li because she thought it was unfair that Apple gave full $200 refunds to those customers who purchased their phones within the two-week return window. From Apple Insider:

Li included in her 8-page complaint historical stock graphs that show Apple’s share price to have risen in between the time it released iPhone in late June and when the company instated the price cut. She argues that this is proof that there was no sound reason for the cut, which she equated to “underselling.”

“Market conditions did not require Apple to change its price,” Li’s attorney, C. Jean Wang of Wang Law Offices, PLLC wrote in the filing. “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.”

The lawsuit goes on to accuse Apple, Jobs and AT&T of forcing customers into 2-year service agreements with AT&T and imposing hefty $175 termination fees. These requirements are unfair, the suit continues, because customers who purchased the iPhone later in the year were able to utilize unlocking solutions that allowed them to forgo such terms and fees.

Unlocking solutions? That must be in the next lawsuit.

Oh, Steve Jobs. You’ve made them so mad. They hate you now.


Apple, Jobs, AT&T sued over iPhone price cut, rebates
[Apple Insider]
(Photo:Dan H)