iPhone Cost Analysis

[msharpmu]

I ran some numbers with ATT.

To have 2 iPhones on a family plan with 700 minutes it would cost $3,896 for 2 years (including the purchase of the phones).

To have 2 blackberries on a family plan with 700 minutes it would cost $3,320 for 2 years (including the purchase of the phones).

To have 2 "flip-phones" on a family plan with 700 minutes it would cost $1,880 for 2 years (including the purchase of the phones).

How can someone justify this price difference? How can Apple?

 

[gauchogolfer]

Are you sure that the blackberry data package is accurate? I thought they were quite a bit more expensive.

Also, this just in: new tech costs more than old tech.

 

[TEG]

To justify, you must also weigh the extras you get with the iPhone.

To compare BlackBerries, you must add an iPod Nano. To compare flip phones, you must add a PDA and an iPod Nano.

TEG

 

[JCastro]

Are you sure that the blackberry data package is accurate? I thought they were quite a bit more expensive.

Also, this just in: new tech costs more than old tech.

I was thinking the same thing. That may be priced with out the unlimited data plan though.

As far as, how can AT&T/Apple do that? Well, they can only charge what people are willing to pay for. And so far, people are lining up to pay for the technology and service. So, they will continue to charge what they charge. It is the law of suppy and demand. As long as there is a demand they will continue to supply. If you don't like it don't pay. If enough people decide that it isn't worth it at that price then they will drop the price or the product. I don't see that happening though.

I like the technology and am willing to pay for it.

 

[aerospace]

Not everyone needs to have the cheapest phone on the market.

Its worth 49/mo to have access to my email, internet, stocks, weather, maps, phone, alarm clock, etc 24/7.

 

[BOSS10L]

Well, using that logic msharpmu, we should all be using the free phones that come out when we re-up our contract.

Do I absolutely, positively have to have an Iphone? No, I don't. But the convenience of not having to carry around a cell, my Palm T|X and an iPod is worth the extra money for me.

I mean, if we wanted to argue semantics (which I'm not, just making an observation), we could all survive just fine without cell-phones at all. Up until summer of last year, I never had mine powered on unless I was making a call. To me, they were little more than emergency communication devices. I carried it for nearly a decade, using it on average maybe 2-3 times a month.

The iPhone has changed that though. While I'll be the first to admit that I feel that technology is somewhat distancing us from each other, the simple fact of it is that technology allows us to be more productive. If I can save a total of 10 minutes a day not switching between 3 devices, that's great. Add in the fact that with the iPhone I may be able to leave the MB at home some days, and woo-hoo, I'm a happy guy. Being a full-time student, employee as well as husband and dad, each minute I can shave from one thing to use on the next is more time I get to spend with my family, and that, my friend, I cannot put a dollar amount on.

 

[BlueCan]

Apple doesn't need to justify it. They're selling a tool that works very well for the intended users.

Here's how I justify it...
Cost of the phone to me was free. It was a gift.
I was already on AT&T, so I carried my plan over.
I added the "iPhone Data Plan" for a grand total of $20 a month. I get to remove the 4 calls to "Directory Service" I used to make every month (isn't the web great?!). Net cost to me: $13/month==$312 over the 2 year period over my previous "clamshell" phone.

I've spent more $ on seating upgrades on airplane flights in a similar time period and gotten less utility from them on a daily basis.

Even if you count the $400 on the phone, I've gotten more (and will CONTINUE to get more) utility from it than my previous phone.

 

[drchipinski]

you are getting off easy, my iphone was going to cost me at least $3300 for the 24 month contract.

ATT had a meeting and we decided their coverage and service does not live up to my expectations, so I no longer have their service.

 

[Rspaight]

I ran some numbers with ATT.

To have 2 iPhones on a family plan with 700 minutes it would cost $3,896 for 2 years (including the purchase of the phones).

To have 2 blackberries on a family plan with 700 minutes it would cost $3,320 for 2 years (including the purchase of the phones).

To have 2 "flip-phones" on a family plan with 700 minutes it would cost $1,880 for 2 years (including the purchase of the phones).

How can someone justify this price difference? How can Apple?

iPhone vs. Blackberry (especially a 3G Blackberry, if ATT sells 'em yet) is an interesting question and one that you could justifiably go either way on. The iPhone definitely has a better web browser, better screen, and better media playing abilities -- the Blackberry has better email, data syncing and keyboard. (You could argue ease of use all day, but I'll go with the iPhone.) Pick yer poison. If the Blackberry meets your needs/wants better for less money, then congratulations, the decision is obvious.

But using price as the only criterion to decide between an iPhone and a bare-bones cell phone is ludicrous. A "flip-phone" costs far less because it does far less. You might as well compare a Mac mini to a Mac Pro and ask how Apple justifies the difference...

 

[BOSS10L]

I've spent more $ on seating upgrades on airplane flights in a similar time period and gotten less utility from them on a daily basis.

That's what I'm saying. People constantly rag about one thing and are totally frivolous in another. I was getting breakfast the other day and a woman about had a coronary when she found out that the cost of her daily cup of joe and a bagel went up 20 cents. Of course, she proceeded to storm out in a huff to her '3rd World Country sized' SUV, and sped off.

Yep. 10 miles to the gallon she's getting (at 3.60+), but she's gonna complain about 20 cents. Then again, I'm sure she's the type that would never consider toasting her own bagel and brewing her own joe at home in order to save a buck or two.

Humans are st00pid (misspelling for emphasis).