Facing hordes of iPhone owners irate about the product's newly announced price cut, Apple C.E.O. Steve Jobs issued a rare apology for his company's handling of the announcement Wednesday of a $200 markdown.

Apple's decision to lower the price of an 8 gigabyte iPhone to $399 from $599 just two months after its much-hyped introduction set off a firestorm amongst the brand's most loyal customers, the early adopters who bought the phone immediately after launch.

Jobs announced that iPhone customers who purchased the product from either Apple or AT&T, and who are not receiving any other kind of rebate, will receive a $100 credit to use at any Apple Retail Store or the Apple Online Store.

In a letter posted on Apple's web site, Jobs reaffirmed the company's decision to reduce the cost of the iPhone in advance of the holiday season, while acknowledging a responsibility towards Apple's most eager customers.

"Even though we are making the right decision to lower the price of iPhone, and even though the technology road is bumpy, we need to do a better job taking care of our early iPhone customers as we aggressively go after new ones with a lower price," Jobs said in the statement.

Just hours after the markdown was announced on Wednesday, the blogosphere was already humming with Apple fans looking for ways to recoup some of the original purchase price.

Before Apple stepped up to the plate with its $100 store credit, American Express was already refunding $200 to customers who purchased an iPhone using the credit card, under an extension of its Purchase Protection Program, according to a customer service representative from the card company. A spokesperson from American Express, however, emphasized that the company examines claims on a case by case basis.