$60/year x2 = $120. Isn't that $120 more than you would pay with the first gen, hence, higher TCO?I mean, I think I can certainly affored it but it is technically more. Actually, if you REALLY want to get technical, if I kept my current iPhone for 2 more yrs, then I would still pay $59.99/mo instead of $69.99/mo, hence I would save $240 + cost of new iPhone if I stay with my current one.
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Well, my understanding of "Total Cost of Ownership" is that it includes the cost of the hardware AND the plan - so $120 MORE for the Plan, and $200-400 LESS for the hardware (based on $599 or $399 original iPhone price) is a NET savings over the original iPhone.
Also, don't forget that when you compare the cost of staying with your current iPhone vs. upgrading, you should allow for some recovery on the cost of your original hardware when you sell your old phone on eBay or Craigslist. i'm not saying it's a better deal, only that it's not as bad as some say.