Friday, October 3, 2008

True cost of the iPhone 3G

$200 for the slick iPhone 3G looks like a steal. But if you look deeply the true cost is much higher. 

I did a very simple calculation by comparing rate plans between a normal phone with email capabilites and iPhone both on AT&T. The cost you would pay on an iphone for 900 mins of talktime, unlimited data and messaging is $50 higher than the same for any other phone. Which means that over a 2 year contract you would pay an extra $1200 for the iPhone. 

Even if you discard the difference for data as the iPhone is on the 3G network, the difference in voice itself is $30 per month. Which translates to an extra $720 over the two years. 

In essence you are buying an iPhone with a down payment of $199 and then are on a payment plan of $50 (or $30) per month for two years. Is it still worth it?  I sure do think so. 

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