The New York Times, while pondering whether there is a “method in cellphone madness,” finds this behavior “weird.”
When Apple and AT&T started offering the iPhone for $199, plus $30 a month for Internet access, sales shot up, even though the previous deal — $399 for the phone and $20 a month — cost less over a two-year contract.
The $199 iPhone was the 3G model. Was the additional speed worth $40?
Tags: cell phones, iphone
December 13, 2009 at 1:20 am |
Also, the up front payment is lower. It may be easier for people to come up with a slightly higher monthly payment than with 200 dollars more just to get started.
December 16, 2009 at 4:55 pm |
Actually, the extra speed was worth the extra money. Dressing up the extra payment in a slightly different payment model is interesting, but smartphones with GPRS (the slower speed network bearer, since you ask) don’t make much sense.