According to STUFF (who rated iPhone as no.1 gadget of 2007), iPhone users pay £180 more for their mins/text package than users of other phones pay for the same amount (over 18 month contract). So that's £180 for unlimited internet usage for 18 months. That works out at £5.80 per month for unlimited internet.
i'd say that wins the OS X Dude FAV (FRIKKIN' ACE VALUE) Award for 2007
Is that
really true?
Firstly those on other phones get theirs free, so add £270 onto that £180 for a start. And do those other contracts come with 200 mins and 200 texts? I highly doubt it, they come with substantially more as all other phones use standard O2 contracts, ie: about 1000 texts and 700 mins for £35.
That comparison seems really slanted in favour of the iPhone. A more apt comparison would be to compare the sim only deals with the iPhone contracts (as you have to buy the phone). In that case the iPhone contracts come off pretty bad.
The channel 4 piece said that you needed to take out a £45 a month contract for a decent amount of texts/mins (compared to even £20 a month normal contracts). Which is true. For most people 200 mins and 200 texts will not cut it, and few average people will be willing to pay £45 a month just to get enough mins and texts to make the phone usable.
Basically you're paying over twice the tariff for the unlimited internet, and also paying for your phone on top of that. Also remember that the EDGE network only covers 20% of the UK and that you'll only be using it when you're not at home.
EDIT: For example for £30 a month you get 400 mins and 1000 texts and a FREE n95. I'm not saying that the n95 is as good as an iPhone, but we're talking purely about the contracts here and even without unlimited internet you can see that's a much better deal.
The iPhone = fantastic
The iPhone tariffs = piss poor
iPhone £35 tariff = 200 mins, 200 texts, unlimited internet
O2 SIM only £35 tariff: 1200 mins 1000 texts
So you're getting one sixth of the minutes and one fifth of the texts, but unlimited 20% EDGE cover. You can try and validate the iPhone contracts with "unlimited internet" but the price is so steep it still doesn't stack up. The iPhone is not a subsidised phone, so why can't that offset the "unlimited data" rather than having rip-off contracts as well as an unsubsidised phone? Or isn't £270 enough to cover mobile internet (which, let's face it, wont eat huge bandwidth) for 18 months?
I expect sales to drop drastically over the next few months. Most people will be interested in the iPhone but balk at the price of the contracts and then be told they have to buy the phone as well. If the iPhone is simply too expensive for me to justify (being a huge iPhone/Apple fan who can afford it) then it most definitely is not an option for 90% of the public.