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$200 iPhone should I care

Posted June 14th, 2008 by Umesh

Apple announced the $200 3G iPhone. The price seems really attractive. However, if I dig deeper a different picture emerges. The iPhone will require a contracted 2 years data plan at $30 per month. That is $720 over the life of the contract. So overall cost of the iPhone+service is cost of voice service +$920.

At present I have regular voice only service. I would love to good data capable phone using which I can do occasional quick browsing. I don’t mind paying extra for the ad hoc use of the service. It is not worth $920. The alternative approach for is to buy Blackjack II. You can get Blackjack for -$50 at wirely. My understanding is that there is no contract for the dataplan. So I can purchase the device for -$50 and give up my plan in a few days. In effect I will have very capable device (not as capable as iPhone) and will pay for the service only for what I use. So is iPhone worth nearly $1000. At least I don’t think so.

att cell phone