Thoughts On The iPhone 3G Pricing
Now that the blogokleinbottle is coming down from the WWDC keynote crack-hits, some of the denizens of blogoland are realizing that the iPhone 3G isn’t actually the second coming of Jesus (gasp!) One of the biggest themes that I’m picking up surrounds the pricing changes. I’m not going to link to any of the various posts breaking down the price; because, gods know, I’m lazy and you can’t swing a dead hobo without hitting someone blogging about it. The bottom line is, the price of the two iPhone 3G models come down by $200; but the data plan and SMS charges have gone up. In the end, as a few sites have pointed out, you will end up paying more for the iPhone 3G over the life of the 2 year contract.
My view on this is: So what?
I’m betting that iPhones are still gonna fly off the shelves like Marina Sirtis blow-up dolls at a Star Trek convention. What the vast majority of the blogtards fail to get is, pricing is all about perception. Why else are the prices “$199″ and “$299″? It’s been shown time and again that consumers latch on the the first digit in the price, not the rest. Also, a one time savings of two hundred clams is far more of an incentive to many people than a two hundred dollar savings spread over 2 years. I know that my wallet will be screaming slightly less when I pry it open in a few weeks.
Posted on June 11th, 2008 under Posts • Tags: Apple, blogorama, iPhone. • 
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June 11th, 2008 at 10:50 am
Which is also one of the arguments Mac users have used on people who say Windows is cheaper: long term, when you add in stuff like virus software (and sometimes cards for video, sound or networking), and put a price on your time solving problems, you’ll probably be better off with a Mac.
Also, I’ve never understood this line of thinking. it’s like people who tell you to adjust your withholding so that you’re not giving the government a free loan just to get a rebate check when you file. Most people would blow that money if they were receiving it amortized over a year; get it in a lump sum and you’re much more likely to do something a little more constructive with it, like put it away or pay down some debt.
June 11th, 2008 at 2:18 pm
@joecab:
Not sure whether you’re agreeing or disagreeing
All I’m saying is that your average consumer ranks TCO somewhere below “what the guy down the street will think” in terms of importance.
June 12th, 2008 at 12:23 pm
Oops — I was agreeing
June 12th, 2008 at 2:04 pm
@joecab:
No need for “oops.” Part of my confusion is that this is a complicated topic, more so than the link-bait babble from the blogosphere gives it credit for.
Arguably, as consumers, we should be looking at things like TCO and environmental impact, and a dozen other costs not easily summed up in a single price point. Unfortunately, marketers learned long ago that consumers are lazy.
My frustration is in the inconsistency on the part of the media. Why is TCO suddenly a big deal with this particular cell phone out of all the cell phones ever released in the history of cellphonedom?
July 25th, 2008 at 3:39 pm
“I’m betting that iPhones are still gonna fly off the shelves like Marina Sirtis blow-up dolls at a Star Trek convention.”
Yes, they did.
“Why is TCO suddenly a big deal with this particular cell phone out of all the cell phones ever released in the history of cellphonedom?”
Yes, it does smell of some kind of conspiracy… but its too wide-spread it can’t be organized. I guess it just shows how many different vested-interests feel threatened by such a game-changing device.