iPhone Version 2.0 NOT Cheaper
June 9th, 2008
With the information that is currently available, the second version of the iPhone will not be cheaper. Yes, you pay less on day one. However, the planned rate increases will cost users more over the price of the contract.
Without a plan, iPhone Version 1.0 was about $400.
Without a plan, iPhone Version 2.0 will be about $200.
Day one savings of about $200.
Data plan for iPhone Version 1.0 was about $20 with some text messaging.
Data plan for iPhone Version 2.0 will be $30 probably without text messaging.
$10 per month over the mandated two years yields an extra $240 dollars. With SMS will probably at least cost $5 more a month.
Over a two year plan, the new iPhone version will cost users at least $40 more than the old iPhone.
For somebody buying an iPhone for the first time, it may not be a killer cost. $40 more to get GPS and 3G speeds is not bad. However, many users will not fall into 3G coverage even if they have a 3G capable device.
I am not saying that the new iPhone is not worth it. I am certainly impressed with my original version. The press, however, should not just swallow Apple’s PR that the new iPhone version is ultimately cheaper.
(Oh, and it would be a mistake to think that one could buy one and unlock it without signing up for an AT&T account. Devices will not be sold without activation anymore.)
June 9th, 2008 at 5:20 pm
US problem. Will not apply to the rest of the world.
June 9th, 2008 at 6:16 pm
Even though it won’t be cheaper, I’d still like to get one! As for the press, my bet is that they swallow the PR without doing the research.
June 9th, 2008 at 8:47 pm
Actually, you’ve got some false advertising going on here. You just compared the price of an iPhone 2.0 WITH a plan, to the price of an iPhone 1.0 WITHOUT a plan…lost some respect points in my book…
June 10th, 2008 at 2:45 am
Read the article again, Amir. The $240 quoted is the INCREMENTAL cost over two years (contract period) of iPhone 2.0 OVER iPhone 1.0: ($30-$20)*24.
June 10th, 2008 at 3:09 am
Un, so where’s the source on this bit of “news”? Granted, Apple has taken down the pages on their site that have rate plans, making it highly likely that a price change is in the works, but I’d still appreciate some sources to make this appear more than speculation.
June 10th, 2008 at 4:35 am
The Apple PR is even worse now.
It looks like their ad campaign is going to be “Twice as fast. Half the price.”
Sure it is half the *initial* price… but costs more over the two years than the older version.
June 10th, 2008 at 6:24 am
On a Verizon Wireless phone that uses windows mobile I am paying $44.99 for unlimited internet and $79.99 for the minutes with unlimited SMS.
$40 dollars over 2 years for a faster better featured phone? Regardless I am making out on this deal.
June 10th, 2008 at 8:09 am
It’s called 3G, not G3.
It’s like Apple users have never used a phone before. Yeah, 3G internet is more expensive than 2G. Last year it was shock and awe about the fact that you have to pay for international roaming.
June 10th, 2008 at 8:43 am
Is 3G more expensive than 2G in the US? That’s totally insane. I guess you can charge anyone for anything in the US.
In Europe mobile phones work with both 2G and 3G, without additional costs.
June 10th, 2008 at 9:02 am
in the usa coverage is very wide and cost a lot to operator (the country is so big) so they charge for network upgrades.
sucks but also understandable somehow (somehow only, because at the price of the different plans, they can afford upgrading all they want..)
June 10th, 2008 at 9:56 am
@eli Thanks. I’ve changed the typos. I expected it to be more expensive. I just think the apple PR is being less than honest, and the main stream press is swallowing it hook, line, and whatever.
@bob I agree with you completely.
I don’t blame people for buying this phone. I just wish everybody was saying that it is cheaper. It is a marketing gimmick.
June 10th, 2008 at 11:51 am
As an American living in Europe all I can say is this: deregulation WILL hit Apple in Europe - they just don’t like monopolies. That means an open phone where one choses their own provider. Even if they don’t get hit by a European lawsuit, the iPhone simply rocks. No other phone has compatibility with a Mac like an iPhone. Period. Are you willing to pay for that? That’s the question! Cell/mobile coverage in Europe and Asia has always been superior in these places in contrast to the US, which is hard for me to accept considering the US (Motorola) INVENTED the cell/mobile phone. That’s one BAD example of TOO MUCH competition (the US not settling on GSM phones). C’est la vie. Viva la iPhone! Viva Europe!
June 10th, 2008 at 12:47 pm
Source on the plan price increases please?
June 10th, 2008 at 1:01 pm
@ran Price Plan Increase Press Release from AT&T
June 11th, 2008 at 2:35 am
Since most people will be wanting SMS the cost for the new is another $120 to $240 more.
I guess being in the public eye subjects you to various criticisms, i.e. Amir’s misunderstanding on costs and a couple of others happy they live in another country because they may have cheaper cell phone service and can’t resist the opportunity to critize another.
I for one want to thank you for your articles and keeping busy people up to date with your research. Keep up the good work! You are appreciated!
June 11th, 2008 at 2:48 am
@Michael. Thanks for the kind words.