“Think that new $199 iPhone is going to save you money over the older $399 model? Guess again,” Paul Wagenseil reports for FOXNews,com.
“AT&T is raising its minimum monthly service subscription for the new iPhone from $60 to $70 per month, according to the Associated Press,” Wagenseil reports. “That’s an extra $240 over the lifetime of the two-year contract — more than the $200 initial savings on the handheld’s retail price.”
“And all you ‘unlockers’ probably won’t be able to buy an iPhone directly from Apple and then jimmy it to work on another network with a cheaper plan,” Wagenseil reports. “That’s because it looks like Apple isn’t going to sell them online any more. It’s not taking pre-orders on its Web site, as it has for every other device it unveils before they’re ready to ship.”
“Instead, you’re instructed to go to a brick-and-mortar Apple Store — where dollars to doughnuts you’ll be forced to sign your name on a two-year AT&T service contract, just as you would in an AT&T retail store,” Wagenseil reports.
“Why is this happening? Because, as the mainstream cellular carriers discovered long ago, Americans aren’t as willing to part with their money upfront as foreigners are,” Wagenseil reports. “In Europe and Asia, customers are used to paying hundreds of dollars for a high-end phone, with the tradeoff that their monthly fees aren’t as quite high as they are in America… In a way, that $200 you save on the new iPhone is really a loan you’ll be paying back to AT&T at 10 percent yearly interest.”
“Truth be told, the iPhone 3G is a better phone, at least judging from the specs. The added GPS chip and much faster Internet connectivity are worth the extra 40 bucks over two years,” Wagenseil reports. “But the price cut squarely targets the main market — the millions of Americans who will see the new upfront cost, think ‘half off’ and run out to buy the things all over again.”
Full article here.
As we wrote yesterday, “Charge less upfront, but it costs more over the long-term. That’s just perfect for the mentality of the average Windows PC buyer; they’ll only see the sticker price and not comprehend or just ignore the rest.”