Filed under: iPhone
We know the iPhone isn't cheap, but Billshrink shows the numbers
It's no secret that in addition to the initial price for the iPhone, that there's also months upon months of service plans to pay as well. BillShrink.com gave us some perspective yesterday, showing just how much of an Apple tax we really do pay for the iPhone. In a very easy-to-read infographic, the site pits the entry level iPhone 3G S against the Palm Pre and Android G1 to see what you exactly get and how much you're paying for it when you sign up with the exclusive US carrier for each device (AT&T, Sprint or T-Mobile respectively).
The winner, when it comes to storage space and features, is the iPhone 3G S. But, it's also showing that the Android G1 isn't that bad of a deal either. Its 3.2MP camera just squeaks by the iPhone and it has both a lower subsidized cost and price without contract.
But where Apple really loses is the overall cost of ownership. By far, the cheapest phone to own over a two-year period is the Palm Pre, which clocks in at $2,400. The cost calculated is based off of a service plan with two years of unlimited voice, data, and messaging services. The Android G1 follows with $3,240 and finally the iPhone 3G S at $3,600 -- not including tax for any of them.
Edit: There was some confusion on the back-end of TUAW about whether or not those numbers are for the service plans alone, or if they include the initial cost of the handset. As originally stated, the final totals in the graphic DO NOT include the cost of the headset. For example, the iPhone plan is $99.99+$30+$20 x 24 months = $3599.96 -- rounds to $3600, that matches what's in the graphic. The same holds true for the Android G1 and Palm Pre as well.
![TUAW [Cafepress]](http://www.blogsmithmedia.com/www.tuaw.com/media/tuaw-cafepress-promo.png)
Reader Comments (Page 1 of 2)
HTCMogul.Info said 4:48PM on 6-10-2009
So does the price include the handset cost? In the last paragraph you say it does, then later you say it doesn't.
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Brian said 4:49PM on 6-10-2009
And buying a Ferrari is more expensive per mile than a bike. Not sure what the point is here except the obvious but I think people already knew that.
If we went for the cheapest option every time life would be a sh**ty place. Some times it's fun to waste money.
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bluemonq said 4:53PM on 6-10-2009
...Are you seriously saying that the Pre is a bike compared to the iPhone's Ferrari? Seriously?
Anyhow, I'd say, sure, it's fun sometimes to SPEND money. I don't know about WASTING money though.
Brian said 5:03PM on 6-10-2009
Ok Ferrari -v- Ford
And by waste I mean buy something that we could live without. I know my house is full of electrical gadgets some of which seldom get used.
Life is for living and you cannot take anything with you when you go....
punkassjim said 5:18PM on 6-10-2009
@Brian — I'm with you, but I'll actually go ahead and say I can't live without this device (OG iPhone) after having one for two years. It's just way too much a part of my life now, and I'm also trailed by a string of fancy devices that I eventually just didn't use. This one's different (and I'm sure you agree).
@bluemonq — sure, he was exaggerating, but he wasn't wrong. The Prē was only slightly faster than the 3G, but now it's really a good bit slower than the 3G-S. To my mind (and, granted, I'm an iPhone EDGE user), my time is worth the money.
Sprint's 3G package price apparently can't be beat, but I really do place an enormous amount of value on all that the iPhone affords me. I've played with a Prē, and it's a fantastic device. But it simply doesn't compare. Apple's head-start is just too great.
Logic said 5:34PM on 6-10-2009
These numbers are meaningless. Does it cost less to have a non-iPhone on AT&T with the same minutes, text, and data plans? No.. In fact, I pay more ($45/mo for my "PDA plan" instead of $30) for less (my handset only has EDGE) on AT&T.
Granted, AT&T needs to become more competitive on price, but that's not a function of the iPhone, since there's nothing stopping you from buying the unsubsidized version, unlocking it, and using it on Sprint or T-Mobile. You won't get the iphone-unique services, but those aren't priced anyway.
bluemonq said 5:37PM on 6-10-2009
Ford? Well, I don't know. I've had a chance to play around it for a couple work days (courtesy of a co-worker); I would think calling it an Audi might be a little more charitable :)
In any case, that's a pretty harsh definition of waste; I'd say you should go easy on yourself and say "waste" is anything completely pointless!
@punkassjim: I bought an original iPhone the day after the price drop (unlocked it and used it on T-Mobile). It was a pretty good phone, I'll agree. I'm not sure how exactly (note that I'm NOT saying you're wrong) you're coming to the conclusion that it's a lot slower than the 3G-S.
I do worry about the battery life though. On the weekend, a lot of folks were complaining about horrendous runtime; at the same time, by Tuesday/Wednesday a large portion of *those* folks reported better battery time. We'll see; I plan on getting a one-month trial of both the Pre and 3G-S. That's the only way to be sure!
bluemonq said 5:38PM on 6-10-2009
@Logic: Actually, there is a little something that would stop you from using the iPhone on Sprint: the iPhone is GSM; Sprint is CDMA :)
Randal Santia said 4:58PM on 6-10-2009
your last paragraph says;
"The cost calculated includes the initial price of the handset combined with two years of unlimited voice, data, and messaging services."
then
"Those totals are for the service plans alone, not counting the initial cost of the handset as well."
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Jeff said 4:52PM on 6-10-2009
really, Sprint's service prices are unbeatable, and the Pre looks freaking slick.
...but you'll have to pry the iPhone out of my cold, dead hand. few hundred more dollars every few years be damned.
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Joseph said 5:32PM on 6-10-2009
work is on sprint and getting pres all around. Unlimited internet for $15/mo. insane.
i got my wife a iphone 2g because it was only $15/mo more than her current text plan. She loves it.
virgil said 4:58PM on 6-10-2009
Who the hell uses unlimited voice? Unlimited data I can understand, but with skype, who needs more than a few hundred minutes a month?
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Mike K. said 5:00PM on 6-10-2009
Refurb unlocked 1G iPhone on T-Mobile FTW! iPhone direct from AT&T before they made you sign up for a plan before activation for $250. Less than $60 a month for my rate plan with the t-zones (now unavailable) data plan. No way I'd buy a new one and switch to AT&T. So what if I don't have 3G. There's enough free wifi around, I don't really worry.
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Joshua Brickner said 5:02PM on 6-10-2009
iPhone may not be the cheapest but it beats or matches Pre and Android in every category listed. Plus the App Store is much larger than Android or the Pre.
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Craig said 5:01PM on 6-10-2009
I was thinking about this: As a Verizon customer with Blackberry and the lowest minute family share plan plus unlim data, where does that stack up next to a new iPhone? Storm on VZW with 700min w/ unlim data is just a little bit cheaper than an iPhone on AT&T with the same plan.
Besides, VZW will hit me with an early termination fee $175+/- been six months since I re-up'd my 2 year contract, got activation fee for AT&T (same across all carrriers in US), cost of an iPhone 3GS $199 or $299. So I am looking at $500+/- just to leave VZW and join AT&T.
Lastly, seeing what I am spending over a period of two years on VZW has me seeing sticker shock! I got to say BIG thanks to Billshrink. I am going to sell my Storm on Ebay and pick an LG ENV2 on Ebay. Time to spend less on my cell!!! In this economy someone should take this info and hand it out in front of mobile carrier stores and show the customers how much money these greedy bastards are making!
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Woggledog said 5:05PM on 6-10-2009
TCO of an iPhone isn't anything like what's been quoted.
"iPhone 3G S at $3,600"
Rubbish. For that money, you could fly from europe or north america to HK, pop into a hutch telecom shop, buy a contract free and unlocked iPhone, enjoy a night in HK, and fly back all for less than $2K, and then pop in a PAYG SIM when you get back.
Articles like this really aren't relevant....
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mattbequette said 5:09PM on 6-10-2009
"Those totals are for the service plans alone, not counting the initial cost of the handset as well."
So, if I'm reading the last paragraph correctly and all they are doing is comparing the plans themselves, this article is basically saying that Sprint is cheaper than AT&T and has nothing to do with the phones themselves.
Well done.
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Slappy said 5:11PM on 6-10-2009
These comparisons really don't add any value to the conversation. I understand that affordability is a key metric for some people but that means they get the free phone with a $40/month plan, like I have. I cannot afford ANY smart phone. Those that can, should focus on how well that phone meets there needs and buy it.
And it's not an "Apple tax" it is an "AT&T tax."
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Brandon said 5:12PM on 6-10-2009
This whole thing makes no sense at all.
1) You were not clear about whether or not the phone is in the total price.
2)Why do you include unlimited voice? I work for AT&T and almost nobody has the unlimited voice package.
3)The unlimited data package can not be factored into the price of the phone because it is simply internet on the phone. These devices were created to be all-in-one media devices, if you didn't have data access.... there would be no reason to buy these phones.
and finally.... Can you really compare the G1 and iPhone 3GS? The G1 came out in October of last year, and with the rapidly evolving technology plus the fact that the 3GS is coming out shortly you would have to factor in the evolution of the G1, which cannot be done. To say that the iPhone 3GS wins in all categories is a collosal fail.... it is a good 8 months newer than the G1. The hardware in the 3GS is laughable compared to what it could be.... and should be.
Just MHO
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gamemacster said 5:17PM on 6-10-2009
Since the Pre has come out, it seems that the press (unfortunately including this fine site) has been completely taken in by the Sprint marketing plan - only talk about and compare the "unlimited" plans. It's a valid point of comparison, but far from the only one. The basic plans are a more useful data point for many, and there things are much closer: $70/month ($f1680/2 years) for the Pre and iPhone, $65/month ($1560/2 years) for the G1
In my case (lots of data but less than 100 minutes a month of voice and 0 SMS/MMS) the unlimited plans are all more than I need. Even the basic plans are overkill, especially with gimmicks like Rollover, Friends, M2M, etc. Paying $30 a month for data doesn't bother me, but paying $40 a month for voice does. The first carrier to offer prepaid voice at a reasonable rate (say $0.20/minute) with one of these killer smart phones will earn my business. Until then, my iPod Touch and cheap T-mobile prepaid phone will do the job.
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