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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

 

I pay 99 bucks for my Sprint plan with unlimited data, talk and texting. I have had my TREO phone since the 600 model about 4 years ago. I paid about 600 and change for that phone with a 1 year contract and since then, I've been "free upgraded" to the 650 model, 700 model and now the 755p. I have NEVER renewed my contract and can go wherever I wish.

With regards to Sprint, they are not conducive to FREE SPEECH. A friend sent me a SLIGHTLY off color joke last week and when I tried to forward it to 3 pals, they rejected it based on content!

I have begun shopping for a new service which does not use Big Brother censorship policies. I am surprised that being an American citizen using an American (I thought at least) cellular provider, that I am subjected to brutal 3rd world censorship for a simple joke you'd hear in the barbershop or on HBO!

With T-Mobile.  The BB data plan unlimited is $20 and voice plan starts at $39.99 and unl text is $15.  So you get everything for $75.  The also have unlimited talk and text for $100 and additional lines (family plans) are $49.99.  That is a deal.

My Apple IPOD Nano is riddled with software glitches and I'd hate to rely on it for anything other than music and recreation, I'd never rely on Apple for an integral part of my business like a cellular phone and smartphone! Too unreliable.

The touchscreen feature is very cool , but  it's all about glitz and glamour. I currently  have an unlimited plan.  Text, Voice, Data, ( no roaming) for $99.00.

Why  do you need an i-phone. when you can use your phone for calling and mylo  for internet use, a gps for finding your way  and a note book for doing your work. If you have all n one and you iphone goes down you are stuck. I really don't like putting all my apples in one basket.

if it didnt have the apple sign on the back of it,all of this price's wont be added at all it would be just an other phone on the shelf

I can call my friends in Saudi Arabia and talk about the price of oil and dancing girls on my iphone... I am definitely getting the new one I will be emailing John  with my tips on how to run the war with Iraq and dealing with the enonomic situation in the good ole USA!!! I want to invite everyone that commented here to a BarBQue... my treat!!!

You guys need to check out Helio.  Their best phone is $149(web only) and their 500 minute plan is $65.  That's $1560 over two years.  The plan includes unlimited instant messaging, picture, video, high speed 3G, web browsing, GPS-enabled google maps, Buddy beacon, file transfer, My space mobile.  It also includes mobile to mobile, unlimited evenings and weekends.  Their "Ocean" phone is solid.  Go to www.helio.com and check it out for yourselves.

on my SERO plan from Sprint, my 24/mo deal will only come out to about 960 bucks (with tax i pay about 40/mo). i have unlim data, unlim txt, only 500mins but i use so few it's not a biggie to me.

yeah I have a Mogul which is WinMo, but it does the job (for now).

Kim Peterson better take another math class.  How can you arrive at the conclusion that three other phones cost more to operate over the new iPhone's supposed operating cost of $1975 over two years when one of the comparables actually costs less?   According to the report, "Sprint's HTC Mogul costs $1,955."  Does anyone else think this story has a slant?  Hummm...

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