Wednesday, October 05, 2011

iPhone: Free Means $400

"Leopard" Icons in BlackImage via WikipediaNow that Apple has a new iPhone it is going to give you the old one for free. That is the word. But is it really free? You get saddled with a two year contract, and an old phone. Free means you don't have to pay that first $200. But your monthly bill does not come down, as it would if the phone were really free. Money collected from that two year contract, well, Apple lays claim to part of it.

An iPhone costs around 600 bucks. But you don't feel the pain because you get tricked into thinking it costs 200 bucks, the upfront money you pay. But Apple gets 200 from you and 400 from the carrier.

From a "free" phone Apple will keep getting the 400 from the carrier. 70 bucks per month over two years is 1680 bucks. Apple gets 400 of that. Your monthly bill would be more like 55 bucks per month if the phone were truly free.
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