the reality is not that $50 is a problem. anyone that can afford and iphone doesn't see $50 as a problem. the issue is the average consumer has the attention span of a fly and when a commercial tells them they need something or their neighbor gets a toy and they covet it, they run to the store and buy it.
SINCE they have the attention span of a fly they are not able to take the time and do the simple math of a 2 year contract. If they knew that the iphone 4s with data plan over 2 years cost $2,600 and now it only costs $2,550, they wouldn't be waiting for these sales and would instead enjoy their phones.
But people are stupid, excuse me I mean they have the attention span of a fly and will always concentrate on the cost right this day and not the thousands they are paying over their contract.