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The psychology of spending less up front and getting dinged a bit extra every month is powerful stuff. “Look, it’s only $199!” Now, all of those that bought an iPhone 3G on a subsidized price get to meet the dark side of the deal. It’s up to your carrier to decide when you can get an update to the new iPhone 3GS at the subsidized price.
– James Duncan on The Downside of Subsidized Pricing
