The new iPhone 3G is cheaper, right? The Wall Street Journal is reporting that the Apple iPhone 3G smartphone may cost $200 less, but you'll pay $40 more by the end of the contract. The new iPhone 3G's $199 price makes it much easier to get a new iPhone but it also makes it easier to sign up for a 2 year AT&T contract. AT&T is charging an extra $10/month for the data plan with the 3G, thus the additional $40 iPhone users pay over the 2 year period (($10x24 months) - $200 savings).
I say, what's the big deal? In the end it's a great deal for the iPhone user. Twice the data network speed with the 3G. Add GPS capabilities of the new phone. An improved battery. The up front cost to get the iPhone is $200 cheaper. All for paying an extra $40's over the life of the contract. So what. Sounds like a winner to me. I don't see what's the big deal here. And it took Columbia Business school professor, Eric Johnson (not the EJ guitar player, btw) to figure out that math. Hmmm. Sounds like a slow weekend news cycle.
Now, I do wonder if we'd see that extra $10/month charge if more carriers than just AT&T sold the iPhone. If there's a reason it's costing customers more, that's more likely the cause.
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Mitchell Ashley is principal consultant at Converging Network LLC where he provides product, technology and social media consulting to emerging technology companies. A successful CTO and product innovator, Mitchell has created many successful, award winning products in the networking, security, convergence, Internet and IT industries. In addition to blogging for NetworkWorld, Mitchell regularly blogs at TheConvergingNetwork and co-hosts the widely popular StillSecure After All These Years podcast.
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apple is as much to blame as ATT
Mitchell - don't blame ATT on this, apple is as much or more to blame. First of all I think they get a piece of that 10 bucks a month. Second they choose to do an exclusive with ATT in exchange for a good deal from ATT. Apple is making revenue streams every which way from iPhone.
It is like Apple to do that, isn't it.
No doubt. Like so many other things, Apple knows better. That's why they sealed the battery and only allow you to download applications from their online store. Lol, I love the guy who wrapped Apple in the open source flag in a comment this weekend.
We shouldn't question Apple. If they decided we only need AT&T and no others, then that should be good enough. Apple does no wrong.
Mitchell Ashley
Converging Network, LLC
Personal blog: http://theconvergingnetwork.com
Personal podcast: http://www.clickcaster.com/ss
Your are missing the point
The issue here is not wether $40 dollars extra is a lot of money, because, believe it or not many people think that the new iphone is way cheaper than the last one even when it's not; remember when the iphone first came out and they went from 599 to 399? now that's a real price cut where people were really getting a better deal, but this? it's just a smart marketing move that I'm sure is going to pay off for them
Apple can't keep you locked down!
Luckily you can always pay the full price of the unit and get the pre-paid phone with no contract, head over to iPhone Hacks unlock your iPhone for free then use it on any carrier you want!
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