The myth of the cheaper iPhone
I’m seeing a bunch of headlines today that say things like The iPhone Gets Faster and Cheaper.
Well, maybe. if all you look at is the initial cost. I paid $399 for Judy’s iPhone last December, and the new model would be only $199. So, that’s $200 less, right?
Not if you look at the total cost. Here, do the math with me:
An iPhone without a data plan is worthless. In fact, you are required to purchase a data plan from AT&T with your iPhone. The iPhone data plan on our current account is $20 a month for unlimited use plus 200 text messages. But the data plan for the new phone is $30 a month (in addition to a voice package of $40 per month or more) and requires a two-year contract. So, at $10 a month, times 24 months, that’s an extra $240 you’re required to pay over the life of the contract, which wipes out the $200 savings and then some.
Update: Kevin C. Tofel points out that the 200 included text messages go away as well. Judy and I actually use that capability a fair amount. At 20 cents per message, we might rethink it.
If you’re a business user, the unlimited data plan in the U.S. costs $45 a month. That’s not a price increase. But it’s a lot of money.
And when the new iPhone comes out on July 11 you will be able to buy it only in retail stores (no more mail order sales), and activating the thing will be possible only in brick-and-mortar stores as well. Presumably this will cut down on the number of unlocked phones in circulation, or at least make them more expensive.
Tim, how many iPhones have been sold to businesses? (Maybe zero? There won’t be a reason for them to use this option until September, when support for Exchange is added.)
But since it clearly means a lot to you, go ahead and claim that as a win. I’m moving on.
Didn’t the original iphone force you into a three year contract with AT&T at $20/month, which is $720, the same as a 2nd gen iphone two year contract at $30/month?
Hello Ed.
As you might see, the iPhone is going to be sell in 70 Countries now, Including Central-Americans Honduras, El Salvador, Guatemala and Nicaragua.
I’m from Costa Rica, Why Not Costa Rica or Panama?
Why Apple doesn’t want to deal with our Only Provider “I.C.E” ?
Should it because “I.C.E” doesn’t require a phone Locked to the Network? (that means all 1.5 million cell services here in CR uses unlocked phones)
Here many Tech-Enthusiastic people are waiting for an iPhone/iPhone 3G, but the only way to have it JailBreaking it.
I watched Job’s Keynote and they way he paints new iPhone is Awesome and makes anyone to decide to get a new iPhone intermediately.
I don’t want an iPhone since I have a 3G Sony Ericsson K850i (Great Everything) but what about all other fellas who want one?
Craig, the original contract for the iPhone (I got Judy’s in December) was for a two-year commitment. Early termination fee is $175, with $5 off for every month.
“But since it clearly means a lot to you, go ahead and claim that as a win. I’m moving on.” You brought it up, Ed.
Sigh.
Yes, Tim, I brought it up in the interests of presenting a complete set of facts. A business person would of course have been brain-dead to pay the $45 per month business data plan fee up until now (in fact, until September) because the benefit of this plan is that it allows use of “push” e-mail on supported devices like Windows Mobile and Blackberry handsets. Since the iPhone didn’t do that, a buyer would have been much smarter to get the $20 data plan. Which they all did, I’m sure. Although the willingness of Apple partisans to overpay is legendary.
A workmate of mine told me the iPhone will be available in Australia on pre-paid. I don’t know how true this is (I’ve also read it on a few websites), but it would make the iPhone more attractive to the teen market where they don’t or can’t get into a monthly contract. I’d not sure how data access fits into the pre-paid model.
I’d really like a Nokia N96 instead of an iPhone as I really like the Symbian OS interface that the Nokia N-Series has. But most of the N9x series were quite expensive (until now where Three are almost giving away the original N95 model) and I don’t think I could justify the $1000+pricetag if the iPhone was only a few hundred dollars. Maybe I just not comparing apples and apples.
- Dylan