Apple has offered $100 of in-store credit to all iPhone customers that purchased the phone before the recent $200 price cut.

The news follows mounting criticism of Apple from customers that bought an iPhone before the recent price cut. The iPhone has only been on sale in the US for two months. It will apply to all customers that are not getting any other refund or rebate. Apple’s usual policy is that customers can get a credit if Apple reduces its price on any shipped product within 10 calendar days of shipment. In order to receive the refund or credit you must contact Apple within 14-days of shipment.

The deal has been announced by Steve Jobs in an open letter on the Apple website.

In the letter Steve Jobs is at pains to point out that updates in technology are usual, and that refunds and special deals are not. Steve Jobs' letter states:

"having being in technology for 30+ years I can attest to the fact that the technology road is bumpy. There is always change and improvement, and there is always someone who bought a product before a particular cutoff date and misses the new price or the new operating system or the new whatever. This is life in the technology lane. If you always wait for the next price cut or to buy the new improved model, you'll never buy any technology product because there is always something better and less expensive on the horizon."

He also goes to some lengths to explain the swift price cut, stating: "iPhone is a breakthrough product, and we have the chance to 'go for it' this holiday season...It benefits both Apple and every iPhone user to get as many new customers as possible in the iPhone 'tent'."

Details of how the scheme will work are still being ironed out and Apple is expected to make further announcements.