Just pretend that they are only putting them out every two years. Ignore the 3Gs and when next years phone comes out, get it then. You’re no worse off than if they were only coming out with new models every two years

It’s so simple, I still can’t fathom why there’s been any debate (other than the passions ignited by those who simply can’t stand the idea of waiting for the latest thing)

ATT charges a monthly fee for it’s services. You may buy a full priced phone (or use one you already own) and cancel your service with them at any time.

However, you may want a different, more expensive phone but not have or want to pay the full price. In that case, ATT will take a loss on the sale of the phone in return for your agreement to stay with them at the same monthly rates as everyone else for two years AND forego upgrades during that time.

That’s not a loan, it’s marketing strategy. You get an expensive phone for less. They get your monthly dollars for two years. WIN-WIN.

And for g-d sakes stop whining if you have to wait – you got your subsidy, saved several hundred bucks and now you just have to wait until 18 months passes since you bought the last phone. Or pay full price, whatever you want to do. No one if forcing anyone to pay anything or do anything.

You could not be more wrong.

The cost of the iPhone 3G components was $174.33, according to iSupply in a study they did last summer (http://bit.ly/133BQc). They also claim that Apple pays $50 IP royalties for each unit, so the cost of just the unit is $224.33. If Apple did try to sell it at $199 without subsidy, they would lose a LOT of money because that price is only for the assembly. As Gizmodo points out, “This figure does not include additional costs like software development, shipping and distribution, packaging and miscellaneous accessories included with each phone.” It also does not account for the people who work for Apple, the costs of the retail locations, and other expenses associated with running a company. If you take all of that into consideration, I think $699 for a device like the iPhone is a pretty good deal. And unless you’re ready to pay that price, you need the carrier subsidies.

While I appreciate Apple’s efforts to enhance the product, the i-phone’s main deficiency is the poor quality of AT&T network. The primary purpose of any cellular phone is to connect two callers – something that continues to challenge AT&T.

the fact that there even has to be an article about whether or not this is a loan is evidence enough that people are up in arms and complaining. This simply should not be. it is a non issue. if one is not happy with the terms then find a carrier with terms that you are happy with and do not sign a contract that you are later going to try and complain your way out of. no one is forcing anyone into anything. they are enticing you with groovy, neat phones but if your a person of character you’ll be able to say NO THANK YOU, if you feel it’s unfair.

Blogs are beginning to suck…MM