Tag Archives: communications

Can you buy an iPhone for $199?

iphone1 iphone2

Apple’s iPhone 6 has been a bit hit, selling roughly 10 million units in the first few weeks after launch. But do you really think the new iPhone 6 can be bought for $199? Really?

If you have been watching the new iPhone ads, the $199 does sound encouraging – after all, Apple stated the price was “from $199.” However, that’s not quite the total price; the base price for the new product is actually $649 or more. But stating it that way doesn’t really encourage consumers to go out and buy a new phone.

In reality, upgrading an iPhone every two years using the 24-month service contract will not cost $199. The $199 is a down payment on an iPhone 6 with 16 GB of storage. The down payment rises to $299 for the 64 GB model, and $399 for the 128 GB phone.

The real price ranges from $650 – $920 (depending on carrier) for the 16 GB model, and up to $1,030 for the 128 GB model. Why? Every carrier offers the option to buy or finance by dividing the full price into installments over a two-year period, adding at least $25 to the monthly fee, and sometimes more. To find out, an educated consumer needs to read the fine print and then decide on the value based on the real cost over time.

Group Activities and Discussion Questions:

  1. Start by showing the new iPhone on apple.com. Make sure to show the price options and ask students their impression of the pricing strategy.
  2. Divide students into groups. Have each group research how much the phone would cost when buying both (1) outright, and (2) on a monthly payment plan.
  3. Do this for each of the iPhone carriers: AT&T, Sprint, Verizon, and T-Mobile.
  4. What other additional charges are there?
  5. Write the prices on the board and debrief the exercise.
  6. Pricing chart can be found at http://www.zdnet.com/how-much-does-an-iphone-6-really-cost-hint-its-way-more-than-199-7000033801/

Source: New York Times, ZDNet, Wall Street Journal, other news sources

 

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“The Fighting Sioux” – branding and tradition vs. racist concerns

Names and brands represent a significant investment for all organizations, no matter if they are for-profit corporations, private organizations, or higher education institutions. The University of North Dakota has resurrected its moniker – “The Fighting Sioux.” For decades the school has been of two minds about its nickname and logo. Some supporters view the name as traditional, while opposition characterizes the name as offensive to Native Americans. The logo features a Native American warrior with feather headdress. Merchandise with the logo is popular throughout North Dakota and neighboring areas.

UND had officially dropped the Fighting Sioux nickname in 2011, but after local residents collected 17,000 signatures to put the issue to a state-wide vote, the school was required to reinstate the logo back into effect.

The issue continues to cause problems for UND. The University of Iowa rescinded an invitation to an April track meet due to the school’s nickname. Iowa policy does not allow athletic departments to schedule competitions with schools using Native American mascots, unless the mascot is approved by the NCAA. In a related topic, the women’s hockey team from UND was not able to have their team photo included in the tournament guide due to apparel with the Fighting Sioux logo.

Group Activities and Discussion Questions:

  1. What are the essential elements of this issue?
  2. What have been the experiences of other schools in similar situations?
    1. Have students research the number of schools (high school and college) with similar nicknames that could be detrimental to a race or ethnical group.
    2. What have been the implications?
    3. What is the impact of a university logo on sales of apparel? On other aspects of campus life?
    4. How important is brand to universities?
    5. What could UND do to resolve the issue?

Source: Brandchannel.com, Associated Press, 2/28/12, CNN

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