In a letter on the company's Web site, Jobs acknowledged that Apple disappointed some of its customers 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 aren't eligible for a 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.