iPhone 3G: The "Total Cost of Ownership" Argument
News Type: Event — Tue Jun 17, 2008 3:58 PM EDT
Brian Ford
So, Apple announces the iPhone 3G (does that make the 1st Generation iPhone the 1G iPhone or the iPhone 2.5G and is the iPhone 3G the 2G iPhone 3G?) and alongside the new look, the new software and other improvements, a svelte-looking Steve Jobs confirmed early reports that the price would drop to an unbelievable $199 for the 8GB model and $299 for the 16GB model.
Predictably, the price drop is due to a new subsidy deal with AT&T, as noted in this recent CNET article:An update toward the end of the same article makes note of a concern that has been dominating the technology blog circuit for the past week or so, starting from about t-minus one second after Jobs announced the price drop: Due to the upgraded 3G network, AT&T will no longer offer iPhone specific service plans, and (gasp!) data service rates will go up by a minimum of $10 a month. As a result, the total cost of ownership of an iPhone 3G will ultimately go
up over the course of a two-year contract when compared to a 1G iPhone utilizing the slower EDGE network. To add insult to injury, 200 text messages will set you back another $5 a month. Read more…
[Via Newsvine]
This article is only for the mentally unchallenged people out here though, so you might skip it if you do not consider yourself one among that group. In particular, I want to point out the last few words (though the whole article makes a lot of sense too):Earlier, since AT&T wasn’t subsidising the price of the phone, got to be the exclusive carrier, didn’t have a proper 3G network in place and the iPhone didn’t do 3G anyway, they were offering iPhone users the data plan cheaper at $20 per month. Rest of AT&T’s customers paid $30 per month. Now that they have 3G set up and iPhone users will be utilising it the most, they’ve just upped it to match what all their other customers have always been paying. I don’t see anything wrong anywhere with that.
Like Brian Ford said, “That $160? It could have been $460.”
Think about it. (Again, only the mentally unchallenged people need to reply. I know what the responses from others will be.)