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True cost of the iPhone – CenterNetworks does the math!
Ever wonder what the iPhone will really cost? I decided to pull my accounting suit out of the closet (man it was dusty) and give it a shot. $599 for the device is just only the beginning. I still don’t believe the average American can afford this device, no matter how great the majority of bloggers believe it is. You have to factor in things like a phone plan, data plan, text messaging plan, etc.
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 doing the math, and looking at a year of usage on this device, the total comes to (ATT rate plans):
- 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
Now this is where it gets interesting… here are some other things to remember not included in my calculations:
- 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
So anyway there is my math. Enjoy it, sorry to bring you all back to reality on a Friday night. :)