Total cost for the folks who bought the iPhone before the price drop:If you think it is fair for a company to raise your cost 75% overnight, then you need the education, not me..
$599 - $100 + ($20 x 24 months) = $979
Total cost for the folks who bought the iPhone after the price drop:
$399 + ($20 x 24 months) = $879
Total cost for the iPhone 3G:
$199 + ($35 x 24 months) = $1039
For the first group of people, the iPhone 3G ends up costing 5.7% more.
For the second group of people, the iPhone 3G ends up costing 15.4% more.
You stated a fact that most everyone would agree with. 75% is a large price hike.$20 Data on 7.10.08 to $35 on 7.11.08 is a nice price hike. I do not care if you agree with my opinion, but the price hike is a large one based on %
What you didn't state was that the $399 device cost on 07.10.08 switching to a $199 device cost on 07.11.08 is a nice price cut. A large one, based on both $ and %.
... and the net cost increase between the two is nowhere near 75%.