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True cost of the iPhone - CenterNetworks does the math!
Written by Allen Stern - January 12, 2007
So let's take a look at the math.
- $640 Phone - $599 plus tax (~8%)
- $60/mo Voice Plan - cheapest plan with unlimited nights and weekends
- $40/mo MEdia Max 3000 Bundle - includes 3000 texts and unlimited MediaNet which I assume will work as the browse function on the iPhone
- $8/mo Fees - lovely fees
So what does that equate to in other items?
- 387 Starbucks grande drinks
- 2,129 McDonalds hamburgers
- 968 rides on the NYC Subway
- A round-trip ticket to Japan from the USA
- A new LCD 42" tv with enough money left over to buy all 5 seasons of 24 on DVD
- A Mac Powerbook
- 20% of a monthly ad on TechCrunch
- See this comment from a visitor who says that the plan for this phone will be $49 minimum and not the $40 I suggest
- As one commenter points out, the phone technically is a sunk cost, and so year two will be less expensive. But my numbers are for the first year of ownership and the phone is a one-time cost, not an amortized cost.
- This does not take into account any media purchases and naturally you will purchase media - tack on another $500-1000 for the year
- A good percentage of Americans have poor credit and will require a deposit to Cingular to get started
- If you are already a Cingular customer, the upgrade to the iPhone will cost a bit more. For example, when I inquired about the Blackjack, I was told it would be $600 to upgrade
- My voice figures are on a 900 minute plan, many use a lot more than that
- Comparisons are made to the iPod - how many iPods are owned by people below the age of 18, if so, say bye bye to the iPhone unless parent signs. Not sure how many parents outside of the MTV Super Sixteen crew will do this
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Reality. Hah! I was doing that math Tuesday afternoon and already have the money budgeted. It's not actually that bad when you consider I will be getting rid of an existing cell phone, and will be paying for the iPhone out of my tech budget. I do think Cingular is going to either offer a special iPhone all-inclusive plan, or drop the price of the iPhone. The last thing in the world they want is to be the company that killed the iPhone.
I read somewhere that Apple has asked Cingular not to drop the price of the iPhone at all. Apple tends to do this with all of their technology anyway. For example, anywhere you see an iPod for sale, you'll notice that its price is very very similar to the price of the product if you bought it directly through Apple. The "discounts" you see are rarely for more than 1-2 dollars. I don't quite recall the reasoning behind it, but I think the idea is that it makes the product into more of a commodity.
they wont drop the price
this is phone really is ment for people who are rich
its a cool phone but i can live with out it
its more of an image thing like hey look at her she has one
she must be rich. thats all the phone will ever be
plus it looks fat i like skinny phones better
no one here seems to be considering that this $500 is WITH a 2-year contract from Cingular. A RAZR costs $50 with a 2-yr, but without a contract, would come in at something like $400. Take that, and the iPhone could rise past $1000 unlocked!!! I could get a Black MacBook for that! Apple needs to lower the price of this phone to meet the average consumer's needs; dumb down the hard drive in favor of an SD card slot, take out the wi-fi (since we're paying for mobile internet anyways) or something along those lines, $500 is WAY too much to pay for a phone, especially with the 2-yr contract. Also, knowing Apple in another 6 months or so, an iPhone will cost $300, more affordable for the average consumer (such as myself)
Jake - believe me I know :) I didn't want to add that to this post because I didn't want to piss off the macheads anymore!
I do think that while this device might be unlockable, the actual features might not be available. For example, Cingular says they are the only one with visual voicemail.
I am guessing the unlocked ones will go for $2500 on eBay first month or two.
No chance, I work for AT&T (cingular) and i could tell you that the phone wont be sold unlocked. And as far as upgrade and new contract price, it will be the same. We dont really know what they are going to do with pricing or monthly contract so all those "accountants" out there you'll be in for a suprise.
i agree thats true
i think that the cost is insane all together
$300 for a phone even if the price is dropped
thats hard to believe
did u know that apple went to verizon but they couldnt come
to an agreement ment. i bet apple wanted more money. and if they did come to term then i think the iphone would have had more costumers
maybe im not sure.
cingular is just a weak service in my eyes . like they would
have said yes and to the demand because more people use verizon then there net work. so they wanted to make more money. so they said yes.
the iphone seems to target the rich crowed.
its just an image for a phone. but if the prices
did drop that would be great. but its not verizon we have a problem
The cheapest iPhone is $499, not $599.
The cheapest plan Cingular offers is $39, and their cheapest data plan is $9.99. People for whom cost is an issue will pick some of these options.
Your math boils down to "people who can't afford a cellphone will find it hard to afford this one - especially if they buy the most expensive model."
So people are going to drop $500 on this phone but then hobble it with a 450 minute monthly plan and a data plan that will *eat them alive* on usage fees if they try to actually *use* the phone's data features? That $9.99 data plan doesn't hand out a lot of data in a month -- it's trivial to blow past that limit on a device like this.
It's wifi, so you could restrict yourself to only using the data features when you're in a hotspot.
Its cellular data capability is slow; Edge. 2.5G. 128Kbps on a good day. So that will be frustrating in any case.
Also: wtf? No 3rd party software? That kills it for me right there.
Jobs is just too controlling. Woz had to fight him to get expansion slots in the original Apple and ][, and now that Woz isn't around, Jobs can do what he loves best: controlling everything closing the box.
What? No 3rd party software? That really does suck. I guess that means no Agile Messenger or Gmail or whatever app comes out in the future that I have to have. Have you seen all the cool apps google is making for phones? Why would apple deliberately lock this feature out, unless it's to force you to buy their apps from itunes osftware or something.
G-Mail is a terrible example of what will be missing from the iPhone. Jobs specifically pointed out that the iPhone will run a standards compliant web browser, so web apps are the phones "third party apps." (Those standards aparently do not include Flash though, yet.) Presumably apps like G-Mail are exactly what he's talking about.
This is disappointing, but debatably necessary in the short term to come up with a reasonably stable SDK as this lab-only UI evolves. You can't exactly just port some other, current piece of software, unless you know of some that are already based on a multi-touch system.
I imagine that third party apps will come, and hopefully sooner than later. What else is the point of having this phone run a "real operating system."
PEOPLE! again think about it....... Apple wont just let you pick what ever data plan you want, it will be locked to one or if your lucky two data plans looking at 40+
I'm a very light cellphone user, but love being able to browse web pages and check my email on the go when I'm not near a computer or don't feel like taking my laptop out of my bag.
So I'm a realistic customer for this device - I'll get a lot out of it - even though I rarely make phone calls and don't send or receive text messages that much either. (I really don't like phones, preferring email).
As a result, a viable plan for me would be like this:
* $39.95/month basic plan.
* $19.95/month unlimited data
* $4.95/month basic texting
This amounts to about $65/month. This is about the same as T-Mobile charges for the Sidekick II under similar conditions, and I think the data service I have for the Sidekick is considerably slower than EDGE.
D
thats the whole point
Glen yea, and people who buy a MB car go for the base model. Yea :)The 9.99 data plan will be worthless and the $39 might work but I doubt it.
Sorry brother.... I went into Cingular and inquired about the iPhone... I was told that the iPhone has a special data plan for $49.95 (in addition to voice and text plans).... and that none of the other data plans which do start @ 39.95 will be offered for the iPhone.
I'm sure some of that money will go to steve jobs for him "allowing" cingular to have the iphone exclusive.
You sound hot in your comment if you are e-mail me and we will talk
Yeap - thanks anon for confirming my suspicions... just another reason this thing won't work.
No cell phone price or plan is set in stone. You can always negotiate.
If one rep won't give you the price you want, hang up and try another.
I was able to get my treo 700p for about $150 because my contract with Sprint had expired (I now just wish I had negotiated a one year contract instead of two) as well as a cheaper plan with better terms with about the fifth customer service/retention rep I talked to.
I highly doubt that this will be negotiable. Apple basically never offers deals and this will be a hot product the first few months, they won't be able to keep them on the shelves.
I have the lowest plan $39.95 a month + $20/mo for unlimited media/internet-y stuff. I have been an AT&T customer for years. They aren't the best, but they aren't the worst. I live in SF and no mobile provider is good.
Isn't the cingular deal only for a year or two? As in, maybe after a year or two after this comes out, could we possibly see this phone an different carriers?
Yes Dennis it appears to be for 2 years... by then we will have 100 of these devices with other letters first :)
ephone
mphone
zphone
123phone
etc
Wow you did some math!!?!? Amazing!!! New phones are ALWAYS pricey give it up. When the Nokia 8801 first came out unlocked no plans connected to it, the price was about $800-$900. No one made a spaz about that phone. What about the Moto Razr when it came out. Around the same price as the iPhone. Get off your soapbox calculator and stop bashing the phone. So the AVG American can't afford it... and your point is??????? The average American coudn't afford those other phones either. Also Cingular does have other plans. Don't post this garbage without really thinking first.
No one made a spaz about that phone because Nokia fanboys aren't as loud, obnoxious, and overbearing as Apple fanboys, who are the ones responsible for the spaz in this case.
Actually, the initial price for the RAZR was $800 - which didn't even possess 1/5 of the functionality of the iPhone. In this industry, introductory prices need to start high, so that they can be lowered, creating an incentive for all sectors of the consumer market. It is silly to claim that $500 is too much to ask for a phone/iPod/RealtimeWebBrowser/computer. Had Apple asked $1200 first, people would be clamoring for it as soon as it was dropped to $700.
I am glad someone on here actually knows what they are talking about, when the razr 1st came out it was actually $800, and it sold, and then they were able to drop the price, and that was just for a razr, this phone has a ton of stuff that the razr cannot even touch and the price is a lot lower. I think it is a GREAT deal!
as a member of the under-18 crowd, my parents pay my phone bill. however, I'm going to have to buy the iphone with my own money - get a job, etc. I'm not a super sweet 16-er, and that's how I'm going to afford it...
good point anon... i know i worked for everything i had when i was a teenager - i was talking more about the ability to get a contract - looks like you have that worked out - pretty cool!
hey my contract doesnt end 4 a while but my mom will pay 1/2 of the price of the phone alone but the contract is goin to kill us i already have the m,oney i need but my mom doesnt no the price
Besides the fact that $1200 dollars of that would be spent no matter what phone you bought...
I currently have Cingular and I can tell you that the MediaMax 200 Bundle is $20/mo for UNLIMITED data and 200 text messages. I use the $60/mo voice plan which includes 900 anytime minutes free mobile-mobile calls (within Cingular customers) and unlimited nights/weekends.
You are also forgetting about rollover minutes! I could have actually gone with a cheaper plan because I only average about 700 minutes a month of actual anytime usage. Everything else gets "rolled over" to the next month. Currently I have 621 overtime minutes! This was what pissed me off on my past carriers (Sprint and Verizon) I literally had several monthly phone bills in the $500-$600 range because of overages!
The other thing you got wrong is "taxes and fees". Figure about 30-40% for this! My bill is only $79 before taxes and fees but it is ALWAYS $108+ after those! SUCKS BIG-TIME!!!
Also, it will NOT cost more for a current Cingular customer! This completely depends on what kind of deal you made on your CURRENT phone. Comparing the above comment about the Blackjack does NOT count. OBVIOUSLY that customer is already in a contract which offered him a discount on his current phone and the Blackjack is VERY seriously discounted with a contract. You have to pay off your current contract before you can expect to get spifs on a new one. They aren't stupid, you're paying for the phone one way or another.
I don't know why everyone is acting like this is the most expensive phone to ever come out. There are hundreds of phones in this price range or higher, and many aren't nearly as nice! You seem to forget that because most American carriers only carry the crappy last generation phones. I bought my phone unlocked from a phone retailer and it cost $400 at a discount shop. From the Sony store it would have been almost $600 and it's not anywhere near as nice as the iPhone!
WHy on earth is a bog standard tariff so expensive? And the texts not included? Bizarre that the US is so backwards...
Cor, you Americans get ripped of even more for your mobiles than we in the UK do!
Its pretty amazing how mobile usage is so much cheaper here in India than in the US, where the technology actually developed. I guess, we guys in the developing countries have some things much better than anyone in the (so-called)developed world.
You've included the complete price of the phone into your one-year cost:
$640 Phone - $599 plus tax (~8%) (One time cost)
+
$1296 ($60/mo Voice Plan + $40/mo MEdia Max 3000 Bundle + $8/mo Fees x12)
=1936
But the price of the phone should be a two or three year cost, shouldn't it? Like this:
$214 Phone (640 / 3 years)
+
$1296 ($60/mo Voice Plan + $40/mo MEdia Max 3000 Bundle + $8/mo Fees x12)
=$1510 / year
Man u americans get ripped off.... even adjusting for exchange Aussies get a better Deal =
iPhone = 673.00 AuD (i Rounded + this is for the $499 model)
Plan = depending on Carrier - say the major one Telstra (if/when released here thats who it will be with i would say - which saddens me) $60 PM AuD (Can get Cheaper)
Data = included in Plan
Fees = Included in Plan
Total = $1393 AUD = $1090.00 USD (min 1 year)
or being telstra it will more likely be a bundle for like $80 Pm for 24 Months... they dont make us buy the handset outright here.... it becomes part of your plan...
Harro, I think you are being a bit optimistic here with Telstra's pricing. (Not to mention the fact that we won't see the iPhone for 12 months at least). I bet, there is no way that this phone is going to sell in Aus for under $1000 because of comparable smartphone pricing. My bet would be $1199. (Forget the exchange rate they don't work it like that).
Telstra may include the phone as part of the plan but you only then get less call credits for example an $80 plan includes $70 in call credits, (in Aus we pay around 15-30c per 30seconds with a 20-30c call connection fee depending on what plan level you are on - the higher the plan the lower the fee per 30seconds, and some companies charge per second which is even better. We don't have a concept of buying minutes here.)
The Telstra $80 plan on the NextG network (HSPDA) includes only $10 of data, and their highest plan of $350 includes only $15 of data. I would go through that in 2 days. So to say Data is included is not correct. PC Authority did a great article in their December issue about Mobile Data rates in Aus and they basically said there is nothing out there yet that is reasonably priced. Maybe the next 12 months may see some differences with the competition from Vodafone and 3 in the HSPDA arena.
To cap it off the minimum spend on the $80 telstra plan for 1 year based on the Telstra website and based on a $1299 smart phone is $1920 (or US$1505). This does not include much Data which is around $49 per month for 400MB. Which would bring the total to $2508 (US$1966) so I reckon comparitively to the US, and to CN's calculations we are going to be much worse off.
It will be interesting to revisit this topic in a year when we actually know the figures and see what the other players do with their rates. At the moment Telstra is a BIG rip off.
i agree with you Jeremy.
Thank you for the math - I *knew* I didn't want a mobile phone.
I didn't realize quite how much you millions (billiions?) of people are getting ripped off on mobile telephony. You pay for every little thing you use. It reminds me of the shock of arriving in the UK to find that there was no such thing as flat rate internet access. (My first month I spent hundreds of pounds on dialup - haha - it was tallied in fractions of a second. Gee, can I afford this sentence? I think broadband is now cheaper than dial up, although who could ever calculate such a thing.)
While it's an impressive device, the mobile networks and the privatization of WiFi by pay2pay* networks make the iPhone rather less than revolutionary. I guess I'll stick with my current plans to wait for the mobile networks to collapse before getting an iPhone. I expect the mobile networks will go the way of the music cartel. Granted, this will take some time, as you've now given them so much money they can afford to buy their way into friendly legislation that artificially ensures their survival whether they've become obsolete or not.
*pay2pay - for example, WiFi is practically free, but the billing service is expensive to build and maintain, thus, WiFi is expensive, which forces one into all sorts of stupid decisions about the value of tiny things.
its too bad cingular sux...
its also too bad that phones dont really work as phones anymore..
Using the numbers above, the amount for three years ($640 one-time cost for the phone, the rest as recurring costs -- an iPhone user will pay $3888.
For my wife and I, sharing a pool of minutes, pay about $100 a month for our two-phone account with Sprint:
PCS Free & Clear Plan
For three years, that's $3600 -- but keeping in mind that is for two phones, we'll compare it to Cingular's plan that adds $10/month for each additional phone (so that my wife wouldn't have to give up hers just so I can afford an iPhone!). That makes the original three-year iPhone cost of $3888 jump to $4248.
If I were to add the cost of my simple bare-bones phone ($6 on eBay plus shipping was a total of $19) and my wife's more state-of-the-art model ($22 with a commitment to keep our plan for two years) that's $41 for hardware plus the $3600 in service fees. So the final numbers are:
$3641 = two cheap no-frills phones using Sprint
$4248 = one iPhone and one cheap no-frills phone on Cingular
For a difference of:
$607 = what it would cost to switch my family plan to Cingular and put an iPhone in my pocket.
That's for three years, though -- meaning a difference of $202 per year, or less than $17 a month -- which looks pretty reasonable when considering how much a data plan costs for a Treo or Blackberry user.
However, we were quite displeased with our Cingular service before we switched to Sprint; so we probably won't be switching back for a while. Besides, Sprint is nearly done integrating their Nextel/SprintPCS networks -- and I anticipate being able to get a PTT ('push-to-talk') phone soon that will let me chat with Nextel users and still get free Sprint-to-Sprint minutes between my wife and myself.
Add to that the unfinished motorcycle I'm trying to rebuild in the garage, and you can bet that $607 is not coming from our walkin'-around-money any time soon.
I think its funny reading all these adds about people bashing the Iphone and saying Ooooh its going to be a flop and oooohhhh I wont get one....I bet half of those people think its awsome and will be getting one on the release date...
They say its too expensive well consider the Razor that was 500 when first released and sold like hotcakes....This will do the same!! If you think not then your fooling yourself...
I have used Pocket Pc's for many years including 6 different Ipaqs 3 different Treo 650's and those were flops too....Sure you can get several appplications on them, but lets see a show of hands who have lost data due to soft and hard resets...How about the battery life on those units...Its about 1-2 hrs with heavy use if that...Many of them are touch screen also...
I see where there is a large market for PDA's but this unit in my mind is not designed for the same functions nor has it been avertised to do such......
Its been advertised to do Movies, Music and Phone and Internet along with Photos....It does all of this...
Some say its memory is low but I have over 1000 songs on my 30gig Ipod with only 4 gigs taken up....half those songs i never even listen tooo...Never have I come close to filling up my 30 gig...I dont plan on replacing my Ipod with this device but it would be nice to have another device when I dont have my Ipod with me...
My 30 gig is a video Ipod and the screen on that sucks so the larger screen is a nice added plus...However I am concerned about the screen scratching...
As for not having keys that will take time to get used to and I wish it had 3 gig but Im not going to be surfing on such a device and why would you really want tooooo....Alot of that is a fad and I would do quick look ups for movies and email but that is about it...I would venture to say many do the same when it comes to so called surfing...A 17 inch monitor notebook works much better....Now to have the phone work as a 3 G modem would be the ticket...
Internet surfing on the Ipone does however look easier than the Pocket PC and the Treo with the ability to have several different web pages open at once and also the ease of zooming and navigation...the other devices are difficult to use at times.
I have cingular already and dont really mind paying the price for this phone with some of the features I will use it for...Plus there is that added cool factor of having one first...When the second generation comes out I will buy that one also so no big worries...In my case my budget can afford it so no worries...
If its a worry for you then you should not be switching your cellphones all the time anyway and stick to the plans that give you a free phone..
i guess i would add that this seems to be going after the blackberry/treo market, and lets face it, this isn't that much more AND who pays for their own blackberry service anyway?
Unless of course your use http://www.Cellswapper.com - they get you out of any cell phone contract without having to pay ANY early termination fees!
I agree about the SDK, and it will be fascinating to see what happens with widgets, if at all?
I’m just not anxious to sign on to Cingulars pricey data plans.
I’ll def get it for the mp3, movie, photo, contact and everything else, non web-related.
Thanks for the insights.
http://www.iphone-converter.org/
Perhaps its different in the UK to the US, but we generally get our phones for free. I pay about £25 a month ($50 or so) and get a free phone every year with the usual 300 odd minutes, data and SMS. Which makes the iPhone as easily obtainable as any other newish phone.
This is gonna be great. Now we can use a $600+ device to drop calls every 5 minutes on America's crappiest cellular network provider, a.k.a Cingular.
Apple at least should've chosen a half decent and reliable network if they're going to overprice this thing so bad.
I will preface my comments by saying that I am in the minority of tech users, so please realize that I only speak for myself and those few who agree with me.
The first and most glaring problem for me is obviously the price in and of itself. I can't stand the thought of paying $50 for a phone, let alone $600. Now I know, the 4GB is $500, but I am the kind of person who not only has to have the best model available, but sees the sound financial sense in paying and extra $100 dollars for twice the data capacity. Having said that even $500 is an insane amount for a phone.
Second, some say it is so expensive, and worth the expense, because you get several devices in one. This is true, but I already have 2 iPods, what do I need with a phone that has one.
Third, is me. This is where I differ so much from the average tech user. I want a phone that makes phone calls. I don't want a phone that plays music, or checks my email, or surfs the web, or watches movies/TV shows on a tiny little screen. I am a firm believer in disconnecting, so the extra cost associated with all these extra capabilities that "connect" me are completely moot.
Lastly, and maybe least important is the fact that all the snazy clear plastic and highly polished surfaces will be scratched beyond all recognition in a years time. I know first hand. After spending $500 on a 60GB iPod video, it is all scratched up, even though I am meticulous in my care of it, including protective cases. I admit it has a very high "eye candy factor" that makes me want it even though it would be completely useless to me, but for $600 dollars, I would want something a little sturdier so as to maintain it's aesthetic appeal.
I forgot to add that I also don't want to switch to Cingular.
And anyone who think the price will come down on these things is fooling themselves. The only way the price will drop is if no one is buying them, and even though I don't want one, I have a feeling they will sell just as well as the iPod has, meaning there is no incentive for Apple or Cingular to offer deals on the cost of the phone.
i have a 60 gig video ipod. i treat it like shit. never scratched the screen...
actually if i turn it off and look at it closely its scratch up pretty bad...but its bright enough where u cant see it. if i were to get the iphone i'd certainly dig up my cheap little ipod cloth case and hope it fits.
The screen on the iPhone is glass so it resists scratching. If you do not believe me, go to Apple.com it says so there
Ok, Lets do the math for any new Treo or any other smart phone that comes out.
* $640 Any new smart phone - $599 plus tax (~8%)
* $60/mo Voice Plan - cheapest plan with unlimited nights and weekends
* $40/mo MEdia Max 3000 Bundle - includes 3000 texts and unlimited MediaNet which I assume will work as the browse function on the iPhone
* $8/mo Fees - lovely fees
So doing the math, and looking at a year of usage on this device, the total comes to:
$1,935
o, look the same price. You people are idiots. Think before you post stuff like this that dosent make any sense.
Ill buy the iPhone if Cricket sales it, if not then f*** it, Im gonna have to step my rock selling game up. Hahaha! Im Rich Bi**!! Haha!
I like the iPhone multi-touch technology for easy navigation. This will be the next PDA generation.
iPhone is cool
Get iPhone Converter
http://www.iphoneconverter.com/
you are a good for nothing punk who knows nothing of the iphone. Never post on this site again, you are a disgrace to humanity.
if this is the price of the phone is it for america or australia...well if it is american ausies will be beond broke...also if i think that it is gay that i have to pay $20 dollors every 2 months, then this would almost pay off mu house...lol...sarah
Ok, so it seems that you added all the regular payments and fees that every cell phone user already has to the cost of the iPhone. So basically, I'm getting a phone that uses a better and free internet for $640 plus a boat load of other perks. By the way, if your service provider is charging you $60 per month for the lowest plan, I suggest you shop around. I'm doing about $35 including fees and I have unlimited calls from 7pm to 7am and on weekends and to other users. I'm not trying to rag on you, but only fix the situation by telling you I think you're on drugs.
Wow that is a bummer that is way too much for my pocketbook. When I saw the iPhone commercial today for the first time I thought hmm I bet that will be $500 I might actually buy one since my phone broke in half, I would love internet on my phone, and even though I have an ipod I wouldn't mind having one on my phone! But now that the birdie comes out of the house and I see the real cost...very very disappointing..How could you Apple..?
This article doesn't calculate that most people are spending @ $100/mo for their current cell package. So for my free phone, I spend around $1,200/year. Add $640 to that and you're right back at your "shocking" number listed here. The iphone is basically a blackberry matched with an ipod. So add the cost of each of those and you're saving money at the end of the day. Plus, the convenience of just having one device to keep up with is nice. I think the iphone is super cool and there's nothing you can say to make me think otherwise. Unless you tell me it will cause cancer, nosebleeds, irritable bowel syndrome, etc. Maybe then I'll think twice about purchasing one the day they go on sale.
It is a little silly at all the voices saying it'll flop, no one will buy it, etc.
There is a tremendeous amount of wealth. Not only in the world, but in the united states (and western europe) specifically.
8.1 million millionaires controlling more then 30 trillion dollars in financial assests.
I... am not one of them.
Not even close.
I am middle class.
I have a nice car. Live in a great apartment.
Make a decent wage.
And yes, I'm buying an iphone. So is nearly everyone in my office.
It's barely a blip on our expenses radar.
We're not ultra wealthy. I'm at least single and don't have kids to consider. But even my co-workers with them aren't sweating the costs.
As the old saying goes, "if you're happy with what you purchase. with the amount you purchased it for, you got a good deal".
And to me? 600 for the phone is a fair price. Could it be cheaper? sure, but then everything could be cheaper.
I love the iphone. I can't wait to get one. I have to have it and I will buy it.
I earn less than $80,000 a year. I am not wealthy and in NYC, where I live, I'm almost poor, but I am going to buy this phone. (I know there are others like me who will budget their money in order to afford this phone.)
I was going to buy an ipod video anyway, now I don't have to. I needed a new cellphone anyway, now I can have them both in one unit. Saves space and considering the cost of the items purchased separately, the price works out to be a little high, but within the range of prices in today's market.
I just hope Apple has produced enough iphones to meet the demand. I also hope I can figure out how to use the thing before the next best thing is invented.
I think people are missing the point. It will be Mac users who buy this phone. Mac users who are photographers, musicians, songwriters and all kinds of creative people. They will have the calendar, browser, email and everything else they are used to. They will send their work from their phones. The other phones are complicated.( That's the only reason I haven't bought a treo.) This phone is much more user friendly and speaks to your mac. Plus of course it has google maps right there for easy access for those of us who don't want to spend money on a navigation system but are always getting lost.
You are forgetting Iphone supports EDGE speed only, which is about 256kbps. That's 32kb per secs. Now, a photographer takes a 5MP camera (simple P&S) compressed JPEG, which is about 1MB. That'll take about 30secs. to upload. An eternity.
Now, I imagine Mac users are more savvy, photographer type, probably sporting at least a DSLR. Now take the RAW file and upload it. Good bye Iphone.
actually the Iphone supports WiFi and Edge.. the phone is equiped to pick up any availbe wifi so 70% of the time you will be on wifi like i am now using at work!
If you add those costs in for the iPhone, shouldn't you add the cost of the LCD TV, the cost of cable, the cost of the DVD, and the cost of any cables, etc?
Your math is REALLY flawed. Consider the cost of what you're already paying...me, I have a Blackberry - so that $95/month bill is already in place. Essentially, all I need to do is pay for the device. I'll sell the one I have, maybe for $200, so the iPhone only cost me $400 (more than I would have spent if I kept my current phone).
Also, existing Cingular customers WILL be allowed to get the iPhone at the going rate of $499 or $599 respectively. They will need to sign a new two-year contract, which I'm sure isn't an issue.
i agree, the math is totally flawed, it is only correct under the assumption that people don't have cellphones at all before buying the iphone. this is such an oblivious assumption that i think the nature of this post is strongly biased.
with that being said, i am not goin to buy an iphone, because of 2 reasons. 1)it's apple's first attempt on a phone, there for it's bound to have flaws, both with software and hardware. 2)i commute with car, so there is no need for internet browsing on my cellphone, granted that i do take public transportations, i run the risk of being robbed, as american inner cities aren't the safest.
So.
I'm paying $1,400 a year for crap phone - it's NOT like 99% of iphone users have NEVER used or budgeted for a phone BEFORE - so the real cost is the DIFFERENCE. If the iphone lives up the billing - is $500 more a year worth it? Is $2 a day worth it? You decide
another ripoff from apple, like their computers. Very expensive, battery replacement will be a problem. Just look good, nothing else. Like their computers, at first, it looks nice, then we realize those damn things cannot do anything. Now my daughter wants to dump his mac for a cheap PC.
I still prefer a plain normal cell Phone, no camera, no video. no GPS. I'll just buy whatever features I need for a separate gadget. at least when one feature is F!. I dont need to throw away the whole thing.
Overated and Expensive, thats my verdict.
danny
despite the high cost, you just KNOW people will HAVE to have this phone, especially when USWeekly gets a picture of Paris Hilton yaking away on it.
I hate telling all the people looking for an excuse to grip and complain, but the blackberry and other similar handsets are expensive and have a higher cost monthly plan than a normal phone. When you look at the iPhone in relation to these platforms, it is nothing different - still a high cost of ownership.
The iPhone is a status symbol - it will fly because we are a society of excessive.
Othere need not purchase. (and complain and bitch)
Phone, iPod or PDA, this is the first version *product* from Apple. (Real working people, not peeps standing in line at Starbucks looking for a 10 amongst 100's...lol) People who know Apple and have been buying know the Apple product cycle. 1st release, cleanse, 2nd release....These people know the 2nd version will be the big rush not this first one. 30% less $$$ with double the RAM and all the bugs fixed and hopefully a new cell carrier.
This first version are for the early adopters. (http://en.wikipedia.org/wiki/Early_adopter) Nothing matters on this except raw sales in the market and market share.
damn that a good deal.. i really need to upgrade my nokia 4120 since i got it back in 1993.
holy crap is this jackie chan? damn you still have the nokia 4120, wow that is an antique. Does it still work? Does chris tucker still call you on that phone? yeah jackie i think its time for the iphone...
These threads piss me off.... Just wait to see how it sells and dont speak for Americans... I am kid and have a limited income but I can upgrade to this phone if I saved a little and came to an agreement with my mom... Dont speak what cant be proved... It is like politics... You will not change an opposing debaters view on a topic... With this you can see the facts... For all of you who think that this is too expensive get off your ass and get a job instead of arguing about something you cant prove online... OkayOkayOkay.... New topic you will all enjoy... Is Jesus the son of God??? Have fun
I hate when people are figuring out the cost of the iphone and the monthly charges and what it will cost you over the 2 years, as if you dont have a phone payment now! What you should be doing is subtracting what you are currently paying and posting that difference, in the end its not much more.
I have a phone that i paid $500 for a year ago and I have 3000 anytime minutes and unlimited text messaging but no data plan whatsoever and still paying almost $90 so stepping up to $100-$110 is not that much!
And sorry no phone out there looks and works as good as the iphone from what i have seen. Everyone's interface and functions I dont care what phone you have, have been using the same mold for years, It took someone that is not in the phone business to break the mold!
And even though we might pay a little more for what they have created, they deserve it, this will only make other companies start thinking outside the box!
Props to Apple.
Majority of people who will buy this phone will be doing so just to meet that cool look, and that wonderful feeling of being ahead of everyone...purchase for business, sorry bout your luck but wont sell those stocks for you, unless of course ya want some tech grad that has grasp of computer programming doing this for you, and for play well it aint really play if you have to protect your purchase like its new car.
Really believe a very few of those who buy will take full advantage of all the features, and sad thing is, sometimes one end of technology can get ahead of the rest. You might wait long while before all those things you have now are available in a way to suit you.
Phone, computer whatever is only as smart as person who programmed it, and add in some money hungry people hoping for that big pension and nice bonus to boot. End up with technology that seems way ahead of it's time but has probally been planned and operated 5 years earlier.
It's marketing genius on how to use human mind against itself, why do ya think computer bought today is outdated in 6 months...not cause they suddenly got new ideas, its cause they know they can give you everything inbetween first which in turn takes your money and gives them time to come up with next 10 years of technology.
Regardless of price, only purchase something that works for you, to get stuck in world of upgrading is a terrible and costly experience, unless of course you have a trust fund to play with.
Half of americans now wont be able to afford it, but in 6 months when new model comes out they will now have 2 models going...those for less willing to part with their money but price drop will make it available(1st), and of course ones who live to spend, new phone every other day as long as you people have an open account. These companies just cover all their basis and are always 5 years ahead. Those who arent do not last.
Ruined. By the release of official ATT service costs today.
You are an ass!!!
Your rate estimate was totally off!!!!
This topic is now out of date, with plan pricing out (see apple.com/iphone)
I'm a bit confused by this 'MediaNet' thing...where did that come from?
According to http://www.wireless.att.com/cell-phone-service/specials/iPhoneCenter.html, the data is already included for the $60 a month. The price goes up for more sms and minutes, but you already get data. If you are an existing customer, you can keep your own minute plan and tack on the data package, but that actually makes no sense.
The iPhone costs are in my case MUCH cheaper than what I already pay. My phone is $60 a month and my data is $60 a month for my WM phone...so, to me this is actually a good deal!!
It was so sad to see all of those teens and 20-somethings waiting outside to buy an iPhone. The likelihood is that they were there with their parents' blessing, that their household is already in credit card debt heaven, but, most importantly, $1,936 will pay for tuition and books at many excellent state universities where these customers might just learn to read, write and think and secure a good living. Some trade off parents! You should be ashamed.
Thanks for the concise cost analysis that you have put together. Lots of good comparison data on the comments, as well.
I would add that most PDA phones are used in businesses. Treos and Blackberries all have proven capabilities in a corporate setting; they tie in well with corporate EMAIL systems. They are often supplied by the employers. Thus, the cost is not an issue to the end user.
The iPhone is going to be the corporate standard at only one company that I am aware of... Apple.
You amortize intangible assets like a loan. In case of an iPhone, you would depreciate it.
I WOULD LOVE TO HAVE AN IPHONE...BUT WHY WOULD I PAY $1,936 FOR A PHONE?...NOW, IF THEY LOWER THE PRICE AT LEAST TO $1,000 THEN i WOULD SAVE THE MONEY TO BUY IT....BUT $1,936 I WOULDN'T BE ABLE TO HAVE THIS KIND OF MONEY EVEN IF I TRY...
The battery in the iphone is soldered in. Guess who is making more $ when it comes time to replace it? Add a ~ $75-$100 charge over life of unit.