Apple apologizes, offers $100 credit to early iPhone buyers

SAN JOSE, Calif. — Apple CEO Steve Jobs apologized and offered $100 credits today to customers who shelled out $599 for the most advanced model of the iPhone, only to have the company unexpectedly slash the price $200 in a push to boost holiday sales.

In a letter on the company's Web site, Jobs acknowledged that Apple disappointed some of its customers by cutting the price of the iPhone's 8-gigabyte model and said he has received hundreds of e-mails complaining about the price cut.

But Jobs added that "the technology road is bumpy," and there will always be people who pay top dollar for the latest electronics but get angry later when the price drops.

Jobs said Apple will hand out $100 credits for Apple's retail and online stores to iPhone customers who haven't used any other rebate.

Customers who bought an iPhone within 14 days of the price cut can get a refund of the price difference if they have the original receipt.

The price cut — and the phaseout of the 4-gigabyte iPhone, which retailed for $499 — came less than 10 weeks after the two products hit the market June 29.