Apple customers that were the first to purchase the new iPhone were jamming Steve Jobs’ mailbox after the announcement that Apple was dropping the price of the iPhone by US$200.

Users claim that they were duped by Apple into the immediate purchase of the iPhone, and that they thought the iPhone would hold its value; but Apple apparently had other plans, claiming that the timing was right to drop the iPhone's price by $200 and also to eliminate the 4GB model.

Jobs released an open letter stating that he empathized with how customers felt, but that dropping the price of the phone was necessary in order for Apple to compete in this market segment where the popularity of cell phones is sometimes measured in months as technology evolves. The goal of getting more customers onto the iPhone platform is reportedly the overriding factor in Apple’s decision to cut the price.

Still, Jobs does realize that the situation isn't perfect. Thus, he announced that Apple will be offering iPhone early adopters a US$100 in-store credit that they can spend in any Apple retail store, as a way of helping to dull the pain of the $200 price cut. While it is understandable that it isn't the full $200 that iPhone owners would like, it is better than a sharp poke in the eye.

In order to qualify, iPhone owners must have purchased the original iPhone from an Apple retail location or an AT&T retail store and not have received any rebates or special offers on the phone.

Full details of the plan and how to claim the $100 in-store credit are still being worked out. Expect Apple to release additional information on how the program will work in the next few weeks. Apple’s stock fell as news of the price cut on the iPhone and the $100 in-store credit hit Wall Street.