Why do journalists insist on saying the iPhone costs $2000?

[MacBytes]

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Category: Opinion/Interviews
Link: Why do journalists insist on saying the iPhone costs $2000? (http://www.macbytes.com/link.php?sid=20070710223545)
Description:: In order to reach this insane number, they factor in 2-years of service into the price. That is perhaps one of the stupidest and most misleading arguments a tech journalist can make. EVERY smart phone/PDA requires a service plan, and the iPhone’s is one of the cheapest unlimited data plans you will find. The iPhone costs between $499 and $599, period. You might as well add sales tax and the cost of the gas you used driving to the Apple Store to the “shocking” costs.

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[Sideonecincy]

"Yes we know the price tag of the car says $20,000. But it is actually going to cost you $60,000 with repairs, gas, oil changes and mechanical repairs"

[Genghis Khan]

ummm...because it does?

just like houses...cars (and phones) cost money in upkeep

[discodave]

ummm...because it does?

just like houses...cars (and phones) cost money in upkeep

You're missing the point. Everyone knows you need a service contract with the iPhone (well you don't actually, you can unofficially use it on ATT Pay As You Go).

The point is that every smartphone comes with a service contract. Therefore, the only 'premium' you pay for the iPhone is the $499 - $599 upfront. You would be paying the contract costs on any other phone anyway. Journalists are making it out that you are paying more for the iPhone in terms of your contract than any other handset. This is quite simply, BS. As has already been stated, the iPhone plans are actually very very reasonable indeed.

David

[iBlue]

pedantics.

[123]

The point is that every smartphone comes with a service contract.

Cancel the contract and use it with prepaid/pay as you go sim of any provider.

[siurpeeman]

pedantics.

did you mean semantics or pedants? ;)

for me, the cost of the phone wasn't something to consider. i've found myself replacing my phone roughly every six to nine months at about the cost of $100-200 per phone, because i've never been really happy with any phone i've owned. i'm really happy with the iphone, and i can really see myself sticking with this phone for the duration of the two year contract. so i figure the hardware cost will end up being somewhat the same. the real cost, for me, is the difference i pay in monthly bills each month. the cost of the data plan is only an additional $15/mo, since i already subscribed to 200 texts for $5. but as iBlue stated, "pedantics."

[AlmostThere]

As a non-US reader, reports of the real cost of ownership are good reports, I would go as far to say much better that the nominal unit price, which borders on meaningless.

I don't have an in-depth knowledge of how the US phone market works and the idea of paying (a significant sum) for any phone is alien to me, although I get the impression it is fairly normal for Americans.

Any phone cost tends to vary with how much you actually pay monthly, meaning that it is only the overall cost over the contract that actually reflects the real cost of the phone.

For example, the premium Nokia N95 varies from (approximately, 12 month contract) free plus £50 per month to £250 plus £20 per month. Both these options are around £500 per year, with the difference covering usage plan but diverging after that period. It's all in the contract, but this seems to be the sort of detail the author of this piece seems to want to hide ... maybe he works for AT&T ;)

As I know what I pay over the same period, the TCO gives me a realistic value to compare.

(These comments reflect my own phone buying habits - I know there are other options available in the UK, contracts need to be matched to usage and of course, will have to wait and see what actually happens when the iPhone touches down over here).

[SPUY767]

What they fail to mention is, that with the more expensive data plans on other phones, you're actually paying less with the iPhone over the long haul if, say, your phone costs more than $144.00. because at&t data plans for phones other than the iPhone are more expensive, by $19 to be exact. And it's about the same with any other provider. My GF's Verizon was 79/mo before fees and other tripe for here RAZR net phone.