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	<title>Comments on: The myth of the cheaper iPhone</title>
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	<link>http://www.edbott.com/weblog/2008/06/the-myth-of-the-cheaper-iphone/</link>
	<description>I write stuff. Mostly about Windows. Sometimes I get paid for it.</description>
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		<title>By: Dylan</title>
		<link>http://www.edbott.com/weblog/2008/06/the-myth-of-the-cheaper-iphone/comment-page-2/#comment-168909</link>
		<dc:creator>Dylan</dc:creator>
		<pubDate>Thu, 12 Jun 2008 08:38:16 +0000</pubDate>
		<guid isPermaLink="false">http://www.edbott.com/weblog/?p=2009#comment-168909</guid>
		<description>A workmate of mine told me the iPhone will be available in Australia on pre-paid.  I don&#039;t know how true this is (I&#039;ve also read it on a few websites), but it would make the iPhone more attractive to the teen market where they don&#039;t or can&#039;t get into a monthly contract.  I&#039;d not sure how data access fits into the pre-paid model.
I&#039;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&#039;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</description>
		<content:encoded><![CDATA[<p>A workmate of mine told me the iPhone will be available in Australia on pre-paid.  I don&#8217;t know how true this is (I&#8217;ve also read it on a few websites), but it would make the iPhone more attractive to the teen market where they don&#8217;t or can&#8217;t get into a monthly contract.  I&#8217;d not sure how data access fits into the pre-paid model.</p>
<p>I&#8217;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&#8217;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.</p>
<p>- Dylan</p>
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		<title>By: Ed Bott</title>
		<link>http://www.edbott.com/weblog/2008/06/the-myth-of-the-cheaper-iphone/comment-page-2/#comment-168885</link>
		<dc:creator>Ed Bott</dc:creator>
		<pubDate>Wed, 11 Jun 2008 19:36:18 +0000</pubDate>
		<guid isPermaLink="false">http://www.edbott.com/weblog/?p=2009#comment-168885</guid>
		<description>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 &quot;push&quot; e-mail on supported devices like Windows Mobile and Blackberry handsets. Since the iPhone didn&#039;t do that, a buyer would have been much smarter to get the $20 data plan. Which they all did, I&#039;m sure. Although the willingness of Apple partisans to overpay is legendary.</description>
		<content:encoded><![CDATA[<p>Sigh.</p>
<p>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 &#8220;push&#8221; e-mail on supported devices like Windows Mobile and Blackberry handsets. Since the iPhone didn&#8217;t do that, a buyer would have been much smarter to get the $20 data plan. Which they all did, I&#8217;m sure. Although the willingness of Apple partisans to overpay is legendary.</p>
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		<title>By: Tim F.</title>
		<link>http://www.edbott.com/weblog/2008/06/the-myth-of-the-cheaper-iphone/comment-page-2/#comment-168884</link>
		<dc:creator>Tim F.</dc:creator>
		<pubDate>Wed, 11 Jun 2008 18:13:13 +0000</pubDate>
		<guid isPermaLink="false">http://www.edbott.com/weblog/?p=2009#comment-168884</guid>
		<description>&quot;But since it clearly means a lot to you, go ahead and claim that as a win. I’m moving on.&quot; You brought it up, Ed.</description>
		<content:encoded><![CDATA[<p>&#8220;But since it clearly means a lot to you, go ahead and claim that as a win. I’m moving on.&#8221; You brought it up, Ed.</p>
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		<title>By: Ed Bott</title>
		<link>http://www.edbott.com/weblog/2008/06/the-myth-of-the-cheaper-iphone/comment-page-2/#comment-168882</link>
		<dc:creator>Ed Bott</dc:creator>
		<pubDate>Wed, 11 Jun 2008 17:04:42 +0000</pubDate>
		<guid isPermaLink="false">http://www.edbott.com/weblog/?p=2009#comment-168882</guid>
		<description>Craig, the original contract for the iPhone (I got Judy&#039;s in December) was for a two-year commitment. Early termination fee is $175, with $5 off for every month.</description>
		<content:encoded><![CDATA[<p>Craig, the original contract for the iPhone (I got Judy&#8217;s in December) was for a two-year commitment. Early termination fee is $175, with $5 off for every month.</p>
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		<title>By: Johan R</title>
		<link>http://www.edbott.com/weblog/2008/06/the-myth-of-the-cheaper-iphone/comment-page-2/#comment-168881</link>
		<dc:creator>Johan R</dc:creator>
		<pubDate>Wed, 11 Jun 2008 16:53:58 +0000</pubDate>
		<guid isPermaLink="false">http://www.edbott.com/weblog/?p=2009#comment-168881</guid>
		<description>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&#039;m from Costa Rica, Why Not Costa Rica or Panama?
Why Apple doesn&#039;t want to deal with our Only Provider &quot;I.C.E&quot; ?
Should it because &quot;I.C.E&quot; doesn&#039;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&#039;s Keynote and they way he paints new iPhone is Awesome and makes anyone to decide to get a new iPhone intermediately.
I don&#039;t want an iPhone since I have a 3G Sony Ericsson K850i (Great Everything)   but what about all other fellas who want one?</description>
		<content:encoded><![CDATA[<p>Hello Ed.</p>
<p>As you might see, the iPhone is going to be sell in 70 Countries now, Including Central-Americans Honduras, El Salvador, Guatemala and Nicaragua.</p>
<p>I&#8217;m from Costa Rica, Why Not Costa Rica or Panama?<br />
Why Apple doesn&#8217;t want to deal with our Only Provider &#8220;I.C.E&#8221; ?<br />
Should it because &#8220;I.C.E&#8221; doesn&#8217;t require a phone Locked to the Network? (that means all 1.5 million cell services here in CR uses unlocked phones)</p>
<p>Here many Tech-Enthusiastic people are waiting for an iPhone/iPhone 3G, but the only way to have it JailBreaking it.</p>
<p>I watched Job&#8217;s Keynote and they way he paints new iPhone is Awesome and makes anyone to decide to get a new iPhone intermediately.</p>
<p>I don&#8217;t want an iPhone since I have a 3G Sony Ericsson K850i (Great Everything)   but what about all other fellas who want one?</p>
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		<title>By: craig moynes</title>
		<link>http://www.edbott.com/weblog/2008/06/the-myth-of-the-cheaper-iphone/comment-page-2/#comment-168880</link>
		<dc:creator>craig moynes</dc:creator>
		<pubDate>Wed, 11 Jun 2008 16:48:28 +0000</pubDate>
		<guid isPermaLink="false">http://www.edbott.com/weblog/?p=2009#comment-168880</guid>
		<description>Didn&#039;t the original iphone force you into a three year contract with AT&amp;T at $20/month, which is $720, the same as a 2nd gen iphone two year contract at $30/month?</description>
		<content:encoded><![CDATA[<p>Didn&#8217;t the original iphone force you into a three year contract with AT&amp;T at $20/month, which is $720, the same as a 2nd gen iphone two year contract at $30/month?</p>
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		<title>By: Ed Bott</title>
		<link>http://www.edbott.com/weblog/2008/06/the-myth-of-the-cheaper-iphone/comment-page-2/#comment-168875</link>
		<dc:creator>Ed Bott</dc:creator>
		<pubDate>Wed, 11 Jun 2008 13:14:16 +0000</pubDate>
		<guid isPermaLink="false">http://www.edbott.com/weblog/?p=2009#comment-168875</guid>
		<description>Tim, how many iPhones have been sold to businesses? (Maybe zero? There won&#039;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&#039;m moving on.</description>
		<content:encoded><![CDATA[<p>Tim, how many iPhones have been sold to businesses? (Maybe zero? There won&#8217;t be a reason for them to use this option until September, when support for Exchange is added.)</p>
<p>But since it clearly means a lot to you, go ahead and claim that as a win. I&#8217;m moving on.</p>
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		<title>By: Tim F.</title>
		<link>http://www.edbott.com/weblog/2008/06/the-myth-of-the-cheaper-iphone/comment-page-1/#comment-168874</link>
		<dc:creator>Tim F.</dc:creator>
		<pubDate>Wed, 11 Jun 2008 13:08:49 +0000</pubDate>
		<guid isPermaLink="false">http://www.edbott.com/weblog/?p=2009#comment-168874</guid>
		<description>A specific example of your bias: &quot;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.&quot;
So it IS cheaper! You observe that the business plan hasn&#039;t increased in price, zero change. You don&#039;t compare it to other plans which may be (they often are) more expensive. The sensible conclusion is: that the iPhone got cheaper for business users. But you need to say: &quot;But it&#039;s a lot of money.&quot; Even though it isn&#039;t compared to past plans and competing plans.</description>
		<content:encoded><![CDATA[<p>A specific example of your bias: &#8220;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.&#8221;</p>
<p>So it IS cheaper! You observe that the business plan hasn&#8217;t increased in price, zero change. You don&#8217;t compare it to other plans which may be (they often are) more expensive. The sensible conclusion is: that the iPhone got cheaper for business users. But you need to say: &#8220;But it&#8217;s a lot of money.&#8221; Even though it isn&#8217;t compared to past plans and competing plans.</p>
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		<title>By: Tim F.</title>
		<link>http://www.edbott.com/weblog/2008/06/the-myth-of-the-cheaper-iphone/comment-page-1/#comment-168873</link>
		<dc:creator>Tim F.</dc:creator>
		<pubDate>Wed, 11 Jun 2008 13:04:15 +0000</pubDate>
		<guid isPermaLink="false">http://www.edbott.com/weblog/?p=2009#comment-168873</guid>
		<description>Ed, if you didn&#039;t realize I said we aren&#039;t that far apart. I have no problem saying the cost of owning an iPhone has increased (by $40, let&#039;s add). I have no problem saying stories which ONLY say the iPhone is cheaper are not telling the whole story -- but I&#039;m seeing very few of those except at blogs that also have a ton of iPhone stories and are breaking out each element of the iPhone story into separate articles.  But your headline is just as misleading.
It&#039;s pretty straightforward: some people refuse to pay for an expensive device because other phones are being subsidized but they may be already paying high subscriber fees; some people are willing to pay more for a device but not the service. Other people fall in between or or are not concerned. If the goal is to properly educate people trying to make a decision, stating that a cheaper iPhone is a myth is just as misleading.
You claim you always analyze phones this way, that you aren&#039;t trying to be misleading. Yet you refuse to cite any mention by you of applying this methodology, of treating a subscription as a device cost, of looking at how expensive 3G data plans are.</description>
		<content:encoded><![CDATA[<p>Ed, if you didn&#8217;t realize I said we aren&#8217;t that far apart. I have no problem saying the cost of owning an iPhone has increased (by $40, let&#8217;s add). I have no problem saying stories which ONLY say the iPhone is cheaper are not telling the whole story &#8212; but I&#8217;m seeing very few of those except at blogs that also have a ton of iPhone stories and are breaking out each element of the iPhone story into separate articles.  But your headline is just as misleading.</p>
<p>It&#8217;s pretty straightforward: some people refuse to pay for an expensive device because other phones are being subsidized but they may be already paying high subscriber fees; some people are willing to pay more for a device but not the service. Other people fall in between or or are not concerned. If the goal is to properly educate people trying to make a decision, stating that a cheaper iPhone is a myth is just as misleading. </p>
<p>You claim you always analyze phones this way, that you aren&#8217;t trying to be misleading. Yet you refuse to cite any mention by you of applying this methodology, of treating a subscription as a device cost, of looking at how expensive 3G data plans are.</p>
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		<title>By: Aaron</title>
		<link>http://www.edbott.com/weblog/2008/06/the-myth-of-the-cheaper-iphone/comment-page-1/#comment-168852</link>
		<dc:creator>Aaron</dc:creator>
		<pubDate>Wed, 11 Jun 2008 11:17:31 +0000</pubDate>
		<guid isPermaLink="false">http://www.edbott.com/weblog/?p=2009#comment-168852</guid>
		<description>Based on Apple&#039;s continuous stream of new Ipods that everyone must have, how long till the 3G iPhone is made obsolete by the new &#039;3G iPhone, Now with Hat&#039; and everyone dumps the old for the new.</description>
		<content:encoded><![CDATA[<p>Based on Apple&#8217;s continuous stream of new Ipods that everyone must have, how long till the 3G iPhone is made obsolete by the new &#8217;3G iPhone, Now with Hat&#8217; and everyone dumps the old for the new.</p>
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		<title>By: Baron</title>
		<link>http://www.edbott.com/weblog/2008/06/the-myth-of-the-cheaper-iphone/comment-page-1/#comment-168842</link>
		<dc:creator>Baron</dc:creator>
		<pubDate>Wed, 11 Jun 2008 07:03:36 +0000</pubDate>
		<guid isPermaLink="false">http://www.edbott.com/weblog/?p=2009#comment-168842</guid>
		<description>I agree with Joe on this,
&quot;- you pay $879 total for iPhone v1 on EDGE
- $919 total for iPhone v2 on 3G (and GPS…)
- (for early adopters, it’s $1079 total for 2 years…)&quot;
I do not think the added price from iPhone 2G v1 to iPhone 3G v2 is very steep.
However, the 2 year contract (which I detest) and the activation issues (which apple had to implement to protect att) are putting me off from going from my iPhone 2G 8gig (Unlocked) to a iPhone 3G 8/16 gig .
I received my iPhone from my company and I do not have a contract with att.
I have a t-mobile contract w/edge and if t-mobile had a 3G network I may consider switching to the new 3G iPhone.  ;-)
3G would be nice but I will not sign a 2 year contract with att
I wonder if anyone will figure out how to get around the activation process to unlock the 3G iPhone somehow.
Thoughts?
:-D</description>
		<content:encoded><![CDATA[<p>I agree with Joe on this,</p>
<p>&#8220;- you pay $879 total for iPhone v1 on EDGE<br />
- $919 total for iPhone v2 on 3G (and GPS…)<br />
- (for early adopters, it’s $1079 total for 2 years…)&#8221;</p>
<p>I do not think the added price from iPhone 2G v1 to iPhone 3G v2 is very steep.</p>
<p>However, the 2 year contract (which I detest) and the activation issues (which apple had to implement to protect att) are putting me off from going from my iPhone 2G 8gig (Unlocked) to a iPhone 3G 8/16 gig .</p>
<p>I received my iPhone from my company and I do not have a contract with att.</p>
<p>I have a t-mobile contract w/edge and if t-mobile had a 3G network I may consider switching to the new 3G iPhone.  <img src='http://www.edbott.com/weblog/wp-includes/images/smilies/icon_wink.gif' alt=';-)' class='wp-smiley' /> </p>
<p>3G would be nice but I will not sign a 2 year contract with att</p>
<p>I wonder if anyone will figure out how to get around the activation process to unlock the 3G iPhone somehow.</p>
<p>Thoughts?</p>
<p> <img src='http://www.edbott.com/weblog/wp-includes/images/smilies/icon_biggrin.gif' alt=':-D' class='wp-smiley' /> </p>
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		<title>By: Joe</title>
		<link>http://www.edbott.com/weblog/2008/06/the-myth-of-the-cheaper-iphone/comment-page-1/#comment-168838</link>
		<dc:creator>Joe</dc:creator>
		<pubDate>Wed, 11 Jun 2008 04:34:29 +0000</pubDate>
		<guid isPermaLink="false">http://www.edbott.com/weblog/?p=2009#comment-168838</guid>
		<description>Well, the service is different... You get 3G connectivity instead of EDGE. How much is that worth to you? I&#039;d agree with Tim: the new iPhone is cheaper (50%), but the 3G service is more expensive (50% too BTW). All in all with your reasoning Ed (and for 2 complete years of service):
- you pay $879 total for iPhone v1 on EDGE
- $919 total for iPhone v2 on 3G (and GPS...)
- (for early adopters, it&#039;s $1079 total for 2 years...)
That makes the new iPhone 4.5% more expensive after 2 years ownership and service with AT&amp;T... in exchange for slimmer phone, faster connection, GPS and what not... not too bad.
Also, the analogy with the car isn&#039;t right, because with the car you are talking about a loan (and you do end up keeping the car after you finish paying it). With the iPhone, it&#039;s really the phone + service that end up being slightly more expensive (and better...). After 2 years of ownership, you still have to pay the same $30 per month...
I don&#039;t have an iPhone BTW and I&#039;m already an AT&amp;T customer (with a 2+ years old RAZR). I do find it pretty slick, I was waiting to see v2... Am considering it, I want to see what the new Samsungs and others are worth before deciding what to change my RAZR with.</description>
		<content:encoded><![CDATA[<p>Well, the service is different&#8230; You get 3G connectivity instead of EDGE. How much is that worth to you? I&#8217;d agree with Tim: the new iPhone is cheaper (50%), but the 3G service is more expensive (50% too BTW). All in all with your reasoning Ed (and for 2 complete years of service):<br />
- you pay $879 total for iPhone v1 on EDGE<br />
- $919 total for iPhone v2 on 3G (and GPS&#8230;)<br />
- (for early adopters, it&#8217;s $1079 total for 2 years&#8230;)</p>
<p>That makes the new iPhone 4.5% more expensive after 2 years ownership and service with AT&amp;T&#8230; in exchange for slimmer phone, faster connection, GPS and what not&#8230; not too bad.</p>
<p>Also, the analogy with the car isn&#8217;t right, because with the car you are talking about a loan (and you do end up keeping the car after you finish paying it). With the iPhone, it&#8217;s really the phone + service that end up being slightly more expensive (and better&#8230;). After 2 years of ownership, you still have to pay the same $30 per month&#8230;</p>
<p>I don&#8217;t have an iPhone BTW and I&#8217;m already an AT&amp;T customer (with a 2+ years old RAZR). I do find it pretty slick, I was waiting to see v2&#8230; Am considering it, I want to see what the new Samsungs and others are worth before deciding what to change my RAZR with.</p>
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		<title>By: Ed Bott</title>
		<link>http://www.edbott.com/weblog/2008/06/the-myth-of-the-cheaper-iphone/comment-page-1/#comment-168832</link>
		<dc:creator>Ed Bott</dc:creator>
		<pubDate>Wed, 11 Jun 2008 02:10:32 +0000</pubDate>
		<guid isPermaLink="false">http://www.edbott.com/weblog/?p=2009#comment-168832</guid>
		<description>Tim, you say:
&quot;I just find it silly that no one says WinMo devices cost 3 grand.&quot;
My post started with this premise: &quot;I’m seeing a bunch of headlines today that say things like The iPhone Gets Faster and Cheaper.&quot;
Not a word about WiMo. Interesting how some people think.
It&#039;s not cheaper. Period.</description>
		<content:encoded><![CDATA[<p>Tim, you say:</p>
<p>&#8220;I just find it silly that no one says WinMo devices cost 3 grand.&#8221;</p>
<p>My post started with this premise: &#8220;I’m seeing a bunch of headlines today that say things like The iPhone Gets Faster and Cheaper.&#8221;</p>
<p>Not a word about WiMo. Interesting how some people think.</p>
<p>It&#8217;s not cheaper. Period.</p>
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		<title>By: Tim F.</title>
		<link>http://www.edbott.com/weblog/2008/06/the-myth-of-the-cheaper-iphone/comment-page-1/#comment-168831</link>
		<dc:creator>Tim F.</dc:creator>
		<pubDate>Wed, 11 Jun 2008 01:54:38 +0000</pubDate>
		<guid isPermaLink="false">http://www.edbott.com/weblog/?p=2009#comment-168831</guid>
		<description>&quot;Tim, I can only describe how AT&amp;T/Cingular works.&quot;
Which is how? AT&amp;T didn&#039;t have an unlimited data plan until the first iPhone approached, and for non-iPhones it ranged from $35 to 40 before 3G was introduced while the iPhone was $20.
&quot;As for your item #2, any sane person factors in the full cost of a phone when they are buying a subsidized model.&quot;
I have never heard anyone say, &quot;This RAZR cost me $1500.&quot;
&quot;If you buy an unlocked phone, you pay extra but can take it to any service.&quot;
And? Who&#039;s talking about unlocked? How many unlocked phones are sold in the US? Certainly, nowhere close to the majority. 10% being generous?
&quot;And when I analyze this deal I see that Apple is delivering an improved product for a slightly higher price than it charged before.&quot;
And I see Apple delivering a slightly improved product at a much cheaper price and AT&amp;T delivering a much improved service at a higher price.
In the last statement I quoted, we are much closer to being in agreement. I just find it silly that no one says WinMo devices cost 3 grand. If you do, that&#039;s cool, I&#039;d love to see a link.
Your car analogy that has no service is absurd, and no I wouldn&#039;t say it&#039;s cheaper because it&#039;s not ANALOGOUS.</description>
		<content:encoded><![CDATA[<p>&#8220;Tim, I can only describe how AT&amp;T/Cingular works.&#8221;</p>
<p>Which is how? AT&amp;T didn&#8217;t have an unlimited data plan until the first iPhone approached, and for non-iPhones it ranged from $35 to 40 before 3G was introduced while the iPhone was $20.</p>
<p>&#8220;As for your item #2, any sane person factors in the full cost of a phone when they are buying a subsidized model.&#8221;</p>
<p>I have never heard anyone say, &#8220;This RAZR cost me $1500.&#8221;</p>
<p>&#8220;If you buy an unlocked phone, you pay extra but can take it to any service.&#8221;</p>
<p>And? Who&#8217;s talking about unlocked? How many unlocked phones are sold in the US? Certainly, nowhere close to the majority. 10% being generous?</p>
<p>&#8220;And when I analyze this deal I see that Apple is delivering an improved product for a slightly higher price than it charged before.&#8221;</p>
<p>And I see Apple delivering a slightly improved product at a much cheaper price and AT&amp;T delivering a much improved service at a higher price.</p>
<p>In the last statement I quoted, we are much closer to being in agreement. I just find it silly that no one says WinMo devices cost 3 grand. If you do, that&#8217;s cool, I&#8217;d love to see a link.</p>
<p>Your car analogy that has no service is absurd, and no I wouldn&#8217;t say it&#8217;s cheaper because it&#8217;s not ANALOGOUS.</p>
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		<title>By: Alleg23</title>
		<link>http://www.edbott.com/weblog/2008/06/the-myth-of-the-cheaper-iphone/comment-page-1/#comment-168830</link>
		<dc:creator>Alleg23</dc:creator>
		<pubDate>Wed, 11 Jun 2008 00:39:46 +0000</pubDate>
		<guid isPermaLink="false">http://www.edbott.com/weblog/?p=2009#comment-168830</guid>
		<description>@ al, I wish someone would look into that. why exactly are touch users paying while iphone users dont?</description>
		<content:encoded><![CDATA[<p>@ al, I wish someone would look into that. why exactly are touch users paying while iphone users dont?</p>
]]></content:encoded>
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