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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

 

All I know is my T-Mobile BB Curve is great, with T-Mobile you don't have to get the data package with a BB phone, plus my phone also has WiFi. With the WiFi I get perfect signal at home plus free internet at home and work or anyplace with WiFi.

why don't they allow this device on the verizon network?

No matter what you buy you will pay and pay and pay..if you are a light cell phone user then just go with a prepaid plan

Kim, you are such a goofball!  Your comparsion sucks.  The difference between the phones you compared, is the cost of the phone.  Since each phone has different features, they will vary in cost.  For example, the tilt has a qwerty keyboard for easy texting, while the iphone doesn't.  Both are smart phones, has touch screen, 3G, and navigation.  The choice is simple - it depends on what features people are looking for.  On the other hand, you're such an idiot for comparing different phones from different providers, solely based on the costs of the plans they offer.  To make a fair comparion, you should also be looking at coverage area, network service, and other incentives that people consider before choosing a wireless provider.   So, if you're going to choose a provider based on the cost of the phone, why don't you buy a phone from ebay and aviod the hassle of signing a contract.

Note to Noah.... capitalism is a beautiful thing... go to one of the nameless other carriers, sign your two yr contract on some nameless phone not as cool as the iPhone and then get back on here and whine about how your getting screwed cause you don't have an iPhone. God bless America for freedom of speech and capitalism...

By the way Vitale your plan that is not on a 3G phone. That plan for one phone is $99 a month plus (any extras) and on your 2 yr contract with a comany that works half the time in half the places.. comes out at a minimal $2400. your right that is a huge savings.

Note to Noah.... capitalism is a beautiful thing... go to one of the nameless other carriers, sign your two yr contract on some nameless phone not as cool as the iPhone and then get back on here and whine about how your getting screwed cause you don't have an iPhone. God bless America for freedom of speech and capitalism...

By the way Vitale your plan that is not on a 3G phone. That plan for one phone is $99 a month plus (any extras) and on your 2 yr contract with a comany that works half the time in half the places.. comes out at a minimal $2400. your right that is a huge savings.

ID RATHER GO WITH SPRINTS INSTINTS @99 PER MONTH UNLIMITED EVERYTHING

Well, if you have a problem with the price just dont get the new iPhone... It's really that simple. Dont complain about the price of awesome new phone. There isnt a phone out on the market that can touch it.

Say what you want, but my monthly bill is around $150 with two AT&T Tilts, a Palm Treo, and a Nokia.  This includes unlimited texting for all four lines and rollover minutes, AND by the way, did I mention unlimited wireless plans for both TILTS?  Also, there's free mobilie to mobile (which is a given) and GPS for both TILTS.  Seriously, I don't understand what all the hype about the IPhone is when my TILT does all that and more.  It doesn't really matter what phone you get if you're not going to use all the functionalities and capabilities!  My phone is the bomb!  I have SEVERAL games including TextTwist, Sudoku, WordMojo, Bejeweled 2, and I have the weather on my today screen and photo dialing, and call block thru the SPB Suite, and the I-Phone boasts GPS, but all phones with internet can do that, because it's made possible through Google maps (that's all the iphone uses).  Not to hate on the phone or anything... it's cool, but I can pop my sim card in the TILT today and a razr tomorrow and i don't have to call anybody for activation!  I can also watch YOUTUbe from my phone, too!  JUST USE YOUR PHONES PEOPLE! FIGURE IT OUT! DON'T SPEND ALL THAT MONEY FOR A PHONE!  I got mine on special promotion from AT&T for $99!  Plus, if you go to college or teach, you are eligible for a 15% discount good for monthly bills and equipment online and in-store.  Sorry for the book, but I speak TRUTH, people!

We need to tell companies to go to H3LL. Have you guys notice that just about every thing you get now has some sort of multi year contract? Talk about separation anxiety.  They have all sorts of stuff making it very hard to get out of your deal without paying some crazy high fees. And the claim they are looking out for you…please, spare me.

Look if I pay full price for anything then that’s it. You don't get to force my loyalties.

I paid full price for my phone and I am on a month to month with T-mobile. Each time I go to add something they try to tell me that it will require me to change my plan to include 2 year contact… I guess they think their customers are stupid.

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