While the price of a acquiring a cell phone and associated service is going down, the cost of using a cell phone and associated service is going up. What do you think is meant by this statement?
I think this statement is reflecting how dependent we're becoming to our mobile devices. In my opinion, our phones and computers have a life span of 2 years before they are considered "out-dated". Just as televisions and computers first came out, phones were extremely expensive and large. But since cell phones have pretty much replaced the traditional phone, we are using them for more than just talking.
Phones such as the iPhone and Droid are our mini-computers. They allow us to access our e-mails, Facebook, bank accounts, etc., and phone companies realize how we are using these devices. The money isn't in the actual hardware of the phones, but in the services they can give to the user. Since phones allow us to stay mobile, people are willing to pay the fees that keep them connected.
I agree, as we become more dependent on our mobile devices the cost of usage will increase. The phone companies offer low initial prices and incentives to entice the customer into signing more and more lengthy contracts.
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