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.