Its simple and it has been like this since forever with cell companys and phone upgrades.
You cant upgrade your device whenever you feel like it and expect the provider to pay for most of it. You either pay full price if you want a new phone earlier or wait till your time comes.
I'd argue that - although I admit that wasn't with an iPhone, by far. I had a phone that died once - just up and died after one year. I went to Alltel and told them I'd be willing to lock myself in to a new two year commitment in exchange for a new phone. They said - no go, I'd have to pay three hundred bucks for a cell phone because they need that time to recoup the price.
What a load of crap.
I asked them how were they going to lose money if I committed for a new contract - on top of the year I still owed them? (Stupidly she told me it "takes us a year to get our money" - which I promptly pointed out I'd completed a year of the existing contract!)
I also said if that's what they wanted, fine - how much was their early termination fee, because I'd rather kick them to the curb for $250 and walk across the street to AT&T or whoever, commit myself to them for two years, and let Alltel lose an outstanding customer with a spotless payment record who'd already completed one two-year contract with them.
I walked out with a new contract and a (at the time) spanky new phone, which still works fine.
IMHO, I think a lot of this cell phone pricing stuff is a corporate shell game anyway. (Especially when I see what the genuine article generally sells for overseas - and especially in Asia in the actual cell phone stores; I'm talking the real stuff and not fakes or knockoffs or even gray market phones.) I think this stuff is generally priced at what the market will bear - or what people are willing to pay when they think a product is hip, cool, or exclusive. Also, there is no company on the planet that is going to LOSE tons of money to gain sales - which is why I look at the whole AT&T subsidy thing with a bit of skepticism. What a poor business model. Sounds like a bit of spin to me. And I may be wrong, but I'm certainly entitled to my opinion on it.
It always seems to me that it boils down to no more than conspicuous consumption and we're all guilty of it.
That said, I'm not slagging iPhone users or buyers, because the only reason I'm still with Alltel is I'm waiting for the new iPhone.
😉 And it is purely because I want one, I think they're cool as hell, and I'm lucky enough to be able to afford one. Oh yeah - and because I'm a huge ApplePhile. And I'll admit it all freely.
😀