lucius:

…

So if I really wanted the new iPhone 4S, it would be cheaper to pay the $195 early termination fee and switch to Verizon than to pay an extra $250 to stay with AT&T. As to why I think AT&T knows exactly what they’re doing, I think there was at least one high-level meeting on the pricing, and they figured that they could profit from people who want the new iPhone but won’t or can’t switch carriers, maybe because AT&T is the only carrier with service in their neighborhood. Price it just high enough above the termination fee so that the increased revenue offsets the people switching.

Rafer sez:
Contrasting this with Amazon’s comment on pricing last week.