The new iPhone is actually -$400
Stock traders understand this price psychology pretty well.
In the case of the iPhone, the initial price of the device when it was released last year was $599. Then it dropped to $399…
“It establishes a reference price of $600, and now when it comes down — that’s very, very exciting,” said Dan Ariely, a Duke University behavioral economist and the author of “Predictably Irrational,” a book about how we make decisions. “We compare it to the higher price. I don’t know if Steve Jobs planned this or not, but if he manipulated based on anchoring, he did a very nice trick.”
If it weren’t for Android, I definitely would buy one of the new iPhones. I’m trying to hold out for an Android phone, even with the delays.
I am very excited about the future of mobile applications. With GPS there are so many possibilities. It is going to change the world.
