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Comparing the iPhone's 'true' price

Posted Jun 12 2008, 12:41 PM by Kim Peterson
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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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Comments

 

what jailbroken?

mzz (Posted 06.13.08 8:03 PM) Report Abuse

BTW, "AT&T" is basically the former venal Southwestern Bell Company aka SBC, which reconstructed the national phone monopoly and then bought AT&T, a wreck of a company, to convey some sort of longstanding reputation and value.  SBC offers neither.  Its greatest asset isn't its tech or service; it's its lobbyists.  It pays to have put a President into office.  I wonder what it costs when he retires....

Part of your $2,000-plus each two years helps keep not just AT&T's CEO and shareholders in office, it funds right-wing lobbyists and insane politicians.  A good buy!

(Not.)

Bobbo (Posted 06.13.08 8:09 PM) Report Abuse

who cares right. everyone always has to cry and moan about everything.

tc (Posted 06.13.08 8:57 PM) Report Abuse

Well i am an american that lives in Japan..  If you only knew what kind of phone technology is over here.  There are so many phones here that it would blow your mind..  An IPhone for what.  They have phones here that can do way more for less money than an i phone.....

CT (Posted 06.13.08 9:12 PM) Report Abuse

I work for global company that develops software for quite a few of the major telecoms companies. It cost an average 1.456 of a cent to transmit a simple text message through a single server which is usually a Sun V210 or a HP DL360 or depending on the customers choice of server.

Keep your text cause your paying my salary, oh try video voice mail. You think text is exspensive? (Posted 06.13.08 11:44 PM) Report Abuse

Although i'm a 30 something, what in the world did everyone do before cell phones?  My GOD you used to have to call them from home, see them in person.  Really do people need to talk on the phone all the time?  The world has turned into a bunch of 16 year old girls who can't get off the phone.  Stop wasting your money.  Do you pay by the minute with your home phone to call a local number?  If you want to "text" someone....send them an email for free or write them a letter for the cost of a stamp.  Quit b%$^#&*g about how high the prices of cell phones and their plans are.  Have you forgotten that there are alternatives to a cell.  You were all alive and well before cell phones came about, if you don't have one YOU WILL NOT DIE!!!

sara (Posted 06.14.08 3:42 AM) Report Abuse

I just bought a new I- phone best phone I ever had. I was not very interested in this phone but it has worked well for me and who cares if they bring out a new phone this happens all the time. Those people who complainong about your bill. Well years ago their were no cell phones get over it and pay up!!  

Bobby 73 (Posted 06.14.08 5:10 AM) Report Abuse

From all of the unintelligent ramblings and mispelling of words that we learned in third grade by these so called iPhone or Apple geeks putting in their two cents, I' ll stick with my Blackberry and my PC. They can have the Apple and its "coolness". Any person can see the Apple is more expensive but Apple drones will always find out a way to make you see things their way. Thats the Apple and Steve Jobs way....

Curtis (Posted 06.14.08 8:44 AM) Report Abuse

How do you spell "OVERPRICED"?

AT&T Cell User (Posted 06.14.08 8:54 AM) Report Abuse

I work for a major cell phone company and there are plans, combining both voice and data for $45. We require a minimum $15 data plan with a $30 voice plan.

Cheeky (Posted 06.14.08 9:29 AM) Report Abuse

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