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apple007
BANNED
I am worthless beyond hope.
 
Join Date: May 2006
 
2007-06-23, 18:01

Quote:
Originally Posted by spotcatbug View Post
By forcing you to get a plan when you buy it, they are able to quote a discounted price, without having to tell you the real price. I mean, an iPhone does not cost $599 (or $499), right? It costs $599 (or $499) plus a 2-year contract. Those are not the same.
No, iPhone costs $499 or $599 plus a $175 early termination fee. Whether a buyer continues to subscribe to AT&T is entirely up to the buyer.

Quote:
Well, I thought a little more. I suppose it's possible that none of that 2-year contract money makes it back to Apple, in which case those quoted prices would be the real prices. However, seeing how the cell phone industry has worked up until now, that just doesn't seem to fit, and why would they then force a 2-year contract? If Apple doesn't get any of the money, you would think they'd be happy to sell the phone without a contract of any kind.
That's just naive. AT&T has an exclusive on the product so they're using that exclusive to their maximum advantage (e.g., requiring a contract, charging an ETF for a non-subsidized phone, possibly charging higher data rates, etc.). And again, no one is forced to stay with AT&T, at least in principle. A person can simply plop down $499 or $599 and then pay the $175 ETF on the spot.
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