We’ve had the iPhone on all of our major carriers for a few years now here in Canada, and this is great news for my American friends.
T-Mobile’s new contract-free pricing makes a lot of sense, but it might not be successful for the same reason that JC Penney’s new “fair and square” pricing isn’t working as well as you’d think: the perception of a deal is often stronger. Other carriers bundle the monthly cost of the phone into each bill; T-Mobile will be showing the two separately. Even though it will be much less expensive over two years than competitive plans, the breakdown will make it feel more expensive.
Put another way, this pricing strategy is such a radical shift for a consumer base so dependent on advertised sales, deals, and bargains.