The prices in bold are only for the first 12 months

So an $800 phone costing $60 a month for 2 years ($93 per month) gets advertised as 'free iPhone at just $30!'

Not sure if it works on our generation. On the one hand, obviously it does to some extent, else they wouldn't do it. I know I always made spreadsheets of monthly-average-costs (taking into account resell value of the phone) everytime I got into a 2-year contract. I know a few friends operate like that, too... In any case I think the fake advertised rate may not convince anyone in and of itself, but it does grab the attention, and that's such a key facet of marketing. For example here I'm sure plenty of people would be interested in paying $200 for the helicopter trip, but they probably wouldn't have immediately paid attention to it or had friends tell them about it or have it stuck in their minds if it wasn't priced $99.