Today’s announcement of the new iPhone was greeted with headlines from several major publications claiming a price decrease. An example is given by the dumb fucks at time, who said “the cheaper, faster iPhone”. In reality this is crap, because the new iPhone in the US is having a price increase. While the up-front cost is being dropped to $199 for the 8GB version, Apple cleverly neglected to mention that the AT&T service plan phone will be increasing in cost by $10 per month. Hence the total two-year amortized cost of an iPhone is increased by $40:
previously: $399 + 24 * (20 + 39.99) = 1838.76.
new plan: $199 + 24 * (30 + 39.99) = 1878.76.
I love how marketers come up with these schemes to make you pay more but hide it in a bunch of tiny charges spread over time. It’s an art to hide the total cost of ownership from the consumer, but I don’t think it increases the customer loyalty toward AT&T.
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