Comparing the iPhone's 'true' price
Posted
Jun 12 2008, 12:41 PM
by
Kim Peterson
Rating:
Oh, sure, Apple's new 3G iPhone sounds great at $199, but AT&T is going to pile on a two-year contract, a voice plan that starts at $39 a month and a data plan that adds $30 on top of that. And if you want text messaging, it'll cost you another $5 a month. It all adds up to $1,975 over two years, and Gizmodo takes a look at how that compares with other phones.
Turns out the price isn't that bad. The original iPhone costs $160 less, at $1,815 over two years. But three other 3G phones cost more. AT&T's HTC Tilt costs $2,075, Sprint's HTC Mogul costs $1,955 and the XV6800 by Verizon comes in at $2,175.
Gizmodo's takeaway? "If you don't need 3G at all (or GPS), you might not need to upgrade if you've got an old one. Otherwise, $160 is a small price to pay -- for us at least -- over the course of two years to drastically increase your email and browsing speeds."
Apple shares are down more than 4% today to $173.06 at last check.
Mark Evans says: "The big flaw Gizmodo is missing is the economic model has changed with the carriers now having complete control over pricing, which means they can raise prices any time they like."
Disclosures: I don't own shares of any companies mentioned in
this post. And while Microsoft owns this blog, Microsoft does not
control, censor or otherwise have any editorial influence over what I
write.
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