P.T. Barnum, who coined the term, “a sucker is born every minute,†is saluting AT & T bean counters right now. The Consumerist is reporting that the new $199 iPhone will actually cost more than the $399 old model. Over the life of a two year contract, there is the extra ten buck monthly fee and new fees for texting.
AT & T even tricked Apple's CEO Steve Jobs, who promoted the new phone as being, “more affordable.â€
Math Tricks
$199 iPhone Costs $560
Trend Themes
1. Hidden Fees Trend - The increasing use of hidden fees with the rise of technology products provides disruption opportunities for innovation in fee transparency and communication.
2. Misleading Marketing Trend - Instances of companies misleading their customers for profits show a need for disruptive innovation in marketing practices that prioritize customer honesty and communication.
3. Contractual Obligations Trend - Companies should innovate their contractual agreements to ensure transparency and that customers understand the fine print in their agreements to avoid issues with hidden fees and other unexpected charges.
Industry Implications
1. Technology Industry - The technology industry should explore new ways to provide customers with transparency in pricing and fees during the purchasing process.
2. Telecommunications Industry - The telecommunications industry must address concerns related to hidden fees and misleading advertising that could impact consumer trust and loyalty.
3. Consumer Advocacy Industry - The consumer advocacy industry has an opportunity to provide valuable services to help educate customers on the importance of understanding contracts and fees associated with technology products and services.