news, history, culture and fraudulent meaning

so recently i noticed a news article which said a 16GB iphone 5c is only $50. and i was like :O i might have to pick one up after all!

for those technologically illiterate, 16GB or memory is a bit on the small side, (especially cause it excludes how much of the memory is required for the OS), but if you see it as a medium rather than a storage device it is only 4 or 5 times the cost of the memory, and it also has processing. meaning you get more dynamic interaction with the memory, and can use it far more efficiently and effectively.

both best buy and walmart are engaging in this deal thing and because i have minor issues with wallmart, so i went to  the bestbuy site.

and guess what i saw. (link which expires october 7th       )


With 2-year contract extension
that is before the $50 rebate, and they have a bunch of other expensive stuff, like adding a line, or special replacement product price.
then i looked at the promotion details also shown below

“Valid 10/3/2013–10/7/2013. Offer available in store or online for store pickup only. If purchasing in store, Gift Card may be redeemed towards the purchase of your iPhone 5c. For online purchases, gift card will be valid towards a future purchase. Contract phone customer must be eligible for a new two-year agreement to receive Gift Card for this promotion. Gift card must be returned if the phone is returned. You will be required to agree to the Terms & Conditions. Valid only on iPhone 5c. Carriers, coverage and products may vary by store. Taxes and any applicable surcharges due at time of purchase and taxes are applied to price of phone prior to the gift card credit. Carriers, coverage and products may vary by store. Available in New Jersey. Carrier requirements may include select plan subscriptions, additional data add-ons, credit approval, usage fees and termination fees. Same price new and upgrade unless otherwise noted. 4G LTE not available in all markets. See a Mobile Phone Specialist for details.  


so right now, the phone is $99 and you get a $50 coupon making it $49, that is a damn good price even undercutting the ipod touch by 3/4 of price. and the condition of the contract is a two year extension of any present contracts, which as someone without contracts is fine. 2 years longer of paying nothing to anyone is a fine conditional agreement, i’m surprised though that they would be able to do that, as all my contracts aren’t terminal- they don’t expire like leases. but sure, you know, w/e if they have an aggrement with bankers to unconditionally allow people to get immersion in the system, as long as they extend the duration of residual payments by 2 years- sure that doesn’t effect me.


nope. that isn’t what they meant. it is what they explicitly said, but not what they meant. the price drop mechanically comes conditionally with the adoption or extension of a cell phone contract, afore mentioned as residual payments. and it is no where in the literature.


and here we get into culture and fraudulent meaning… colloquial fraud. where there is an ingroup which may presume some unstated thing and an outgroup which doesn’t presume anything.  it is the outgroup, not the ingroup, which is third party and impartial.

the costs of a phone could be financed in such a way that the cost is spread out over a number of months, with prince increased by interest. but the larger the cost due to bundling the longer and less clear the pricing. if you have one item, and you spread the cost over 6 months it is 1/6 per month. if you have 2 items and you spread it out over 6 months it is 1/6 of each (and both) for the same period. and if you have instead a service which is required to facillitate the upkeep of the device, you can spread the costs in similar normalized pricing teirs for the individual, or demographic, or geographic group.

however you can also obfuscate the real cost by geometrically expanding it out to numberless smaller bills or fees; colloqueally called ‘nickel and diming’. which means that the customer who often can’t be hassled to read the small print of the ledger, just blindly approves it, this can be twisted back into major fees so the layperson can get charged more for not knowing the costs of the goods. 

allowing for example a cell phone company to charge disproportionate interest through regular fees to effectively function as a micro-loan company charging similar interest- though disguised by fees, or residual contract, to allow a return on the loan of the capital in the form of a phone.

and now we get into profit vs non-profit and why profit is better. profit is better because your loans are tacit, and comparable. it is relatively difficult to compare fees by companies which bunch up their managerial processes different so when you get a cost breakdown you aren’t able to directly compare the completion.

now we get into residuals. residuals are payments which are generated by, and earned from, assets. a common residual is profit earned from working land; ie a gold miner mining gold from a plot he owns. in the example, the gold is a direct residual (aka derivative) while the profit from selling gold- exchanging one medium for another- is also a residual.

another couple far more common sources of residuals are intellectual property, and labor. both of which ply,  through contract with, an authority. intellectual property ply the state against non-self industry. and contracts allow formal obligations, generally fiscal, to allow conditions for the facilitation of business; they both endow a member of the work force with entitlements (like being paid), and obligations (like tasks which if not done allow violation of entitlements). there are some non-contractual cultural norms/pretense which help facilitate the paradigm, like having contracts allow people to be gainfully employed. but they aren’t always as resilliant as people be wish to believe.

circling back to cell phone contracts specifically. cell/data carrier companies will discount phones because the phone is necessary for their service- and their monetization strategy. it is like restaurants serving their food upon plates- or rather within viable containers. you don’t hear people saying the mcdonalds are good guys because they give wrappers free. you don’t hear teachers charging parents to enter the school for ‘open house’, or car sales people saying “you opened the door, so it is a deal, which car are you leaving here with”.

why? because those acts facilitate their sale of their primary good/service. and you are the object to work upon to get that sale- that derivative.

it is shameful that the news has become such sensationalistic tripe that people report price drops making the reporters nothing more than shameless free-lance marketers- who abuse their 3rd party status to spew and sew half-truths. it is like historians biasing their accounts to favor the side who one because they know that positive esteem will both help faccillitate the sale and might grow exposure to the work they have labors upon. “so is it so bad to fudge a few facts?” yes. it is. 

the reason the company subsudises the phone to $50 is because that also happens to be the monthly cost of recrual for the data. it allows the company to basicly have a pay wall which functions in similar manner to a renter’s deposit, showing they have cash on hand equal to the monthly charge, implying they have that much discretionary income.

however those aren’t apple(r) iPhone(r), they are carrier brand iphones. phrased another way, it is like apple is selling the phone to the carrier, and the carrier is the one finalizing the sale with standard middle man markup. which is almost identical to pharmacudical companies advertising on television to try getting random people to bully their doctor into prescribing under-needed meds which then gets health insurance companies to prop up the pharmaceuticals.

apple iphone 5c are now $50… my ass. it isn’t apple who is trying to increase representation, which would be a dumb idea as it would depreciate their brand, but microsoft did nearly the same thing with win8. wallmart and best buy are deceptively acting on behalf of carriers- the carriers are the authoritative party. and it irritates me is the actual value of an iphone 5c is roughly $100. but what really pisses me off are the journalists who try to make this seem like a huge discount. they try to make it seem like it is half price rather than an at best 1/11th price drop, and it isn’t even a real price drop as the carriers will just shift the cost as overhead and pad it away within some fee. the premise that someone is taking a loss in favor of advertising is true, but it is the end consumer who is taking the loss- the cost.

what irritates me is how short sighted the ‘reward’ is. and how it is so false for the journalists to say it is nearly fraud. and the other part is that the actual companies facilitating the lie aren’t presenting a tacit deal. i get it, they want the foot and web traffic as people who enter a store often feel obligated to buy something as it is base human interaction.

the entire “iphone 5c price $99 *with two year extension” is also deceptive, thought better than a pure “get $50 off”.

it isn’t “with” as in you can have it or not without penalty, but “requires”. and it lacks the real price/consequence. apple does it best by having the prices presented,

but best buy, nope. and they don’t even cover their asses to the degree they can say “well we put it up there somewhere” the full read through of the full terms had no greater obligation than “Contract phone customer must be eligible for a new two-year agreement to receive Gift Card for this promotion.” eligible doesn’t mean you have to have any form of agreement/contract with the party. if rather than buying just a couple phones i was thinking about buying enough for a business, i’d potentially be thinking about a suit if they didn’t honor the contract they made.



points are several fold:

  • don’t be a journalist who resorts to sensationalism. “if it bleeds it leads”, no, if it bleeds don’t fuck with it. accuracy matters more to your legacy than incredulous appeals to emotion.
  • don’t commit slander or libel. by proclaiming a 3rd party product has an attractive feature or cost model or price point- when they do not- that is, don’t commit advertising fraud for other parties.
  • have all of your options available, not just the one which looks best.
  • make sure your fine print is sufficient to communicate what you mean, and don’t make contractual pledges which you can not keep.
  • fine print is not fluff, don’t bs it. explain your conditions and requirements in a COMPLETE manner. do not omit a detail because you believe it is obvious, when your entire position is based on recognizing it. “it wasn’t in the contract” shouldn’t be the fault in what you advertise.



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