November 14, 2012
University of Phoenix
A Decision of Uncertainty Paper
Decision: To buy or not to by the new Apple iPhone 5.
Just recently, this past spring my cell phone contract recently expired after a continuous extension of over lapping contracts for over ten years. I have decided to finally upgrade my cell phone. The saturated cellular device industry can meet various consumer needs just depending on how sophisticated of a device is needed. The new and advanced iPhone 5 is a huge investment for a cellular phone. The retail price for iPhone 5 ranges from an additional $199 with a two year contract and $500 compared to the contract price AT&T offers. If a consumer signs a two-year contract plan to purchase the phone at a reduced price and incentive. Due to financial restrictions and the holidays, I decided to purchase the phone and my contract price for the phone during the 2012 Christmas holidays. “Through my research and compliance with my constraints, the most opportune time to” (UOP, 2010, Week Three Supplement) upgrade my phone is reasonable during the holidays. Most cell phone companies such as AT&T and Sprint offer huge savings when multiple agreements are made. An iPhone investment could be costly because the standard warranty does not cover accidental damage. The accidental damage insurance, for an additional 48% one-time fee off the contract price, provides consumers with a peace of mind by providing two year coverage for hardware repair, drops, fumbles, slips, and water damage. Purchasing a high costly device means comes with the decisions on whether to purchase the contract price iPhone and not worry about accidental insurance; thus risk purchasing a replacement phone at retail cost or purchase the contract price iPhone and pay an extra 48% insurance fee, which adds to my spending and reallocate my budget for this phone.
To decrease my decision of uncertainty; I have...