When the Toner Costs More than the Printer

Yes, I know that the new printer comes with “starter” toner with limited use, but a brand new b/w laser printer priced at $59.99 and a replacement toner priced at $89.99 really is quite ridiculous.

The strategy to drive deferred revenue through consumables is one that all printer companies use, but some consumers may believe that when the ink runs out, it might make sense to buy a new printer; other consumers will just get a refurbished toner kit.  All-in, people see the printer manufacturer as the devil for “ripping them off” on toner.  So this is all old news, so why am I talking about it?

Phone pricing:  I was recently the purchaser and then returner of the new Motorola Droid phone serviced through Verizon.  In the end, I really didn’t need it, but looking at pricing for the Droid plans and comparing it with Apple iPhones on AT&T made me think.

With the new Apple 3GS iPhones the retail price with plan has dropped (assume $100) while the price of the AT&T plan increased (assume $30 x 24 months = $936).  I am not sure what percent of that increase is going straight from the consumer with AT&T as a passthrough to Apple, but it’s probably enough to guarantee Apple some fat margins.  All of the consumer awe and love goes to Apple for phones that start at $99, while the high monthly charges and failed data network and taxes to be paid get blamed on AT&T who is responsible for keeping billions of dollars of wireless infrastructure up and running.  Whether AT&T is making a profit on servicing high-data, high-demand customers, I feel that they are improperly(or properly) getting beaten by the ugly stick of missed consumer expectation.

What’s the best option for an original Apple iPhone user who finished their intial contract?  I guess it’s to buy a new printer (a new smartphone or iPhone with 2 year plan) or go for some off-brand toner (jailbreak and go T-Mobile).  In my case, the longer I stay with Sprint PCS, and the more customers they lose, I should keep getting better connections since I’m competing with less phones for the same infrastructure.  This holds until Sprint starts cutting cell base stations, and then it will be a good time to not be under a phone contract.