I’ve been putting this off, because I really don’t want to clash horns with The Macalope. Mostly because he’s got, well, a nice rack. And I don’t. But a recent tweet by the horny one meant I have to get this off my chest.
I live in Canada, so I only wish I had the prices and plans available that AT&T offers. But even then, I note an interesting consequence to the way the new iPhone costs you money:
Assuming the Macalope’s numbers are right, sure, the iPhone 3G is $40 more expensive. But that’s over two years! On the day you sign the contract and leave the store with a nice, shiny box on your way to your “unboxing!” photo shoot, you’ve got an extra $300 in your pocket.
All of which begs the question of what you’re going to do with that extra $300 until then. I suggest that instead of blowing it on a Wii you consider how to turn it into $340 by the end of the contract. That’s only 13% over two years. I’m no financial whiz and I’m not even sure how to spell “whiz,” but I bet even I could manage that one. If you don’t think you can, maybe you should step away from the computer long enough to think of something.
Sure, it isn’t cheaper. But if you play your cards correctly it may turn out to be to your benefit anyway. For the record, I don’t give credit to Apple for that. I’m sure no one there said “Hey, let’s hike the price, but we’ll make them pay the extra over two years. Our customers will be able to invest the money they save on the initial purchase and end up ahead!” It’s just the way the numbers work. Hooray for math!