3G iPhone Pricing
The Apple iPhone released in 2007 at $400 per unit. This was a very high price for a phone that did not even have 3G capability, with faster phones selling for as little as $299. This was one of many criticisms that were laid on Apple's phone, however this did not deter consumers from buying them up like hotcakes, and now the company has released information on a 3G version of the phone. This new version will have several improvements over the 2G standard version released last year. Things like a non-recessed head phone jack, faster speed, more storage capacity, GPS functionality, and a new white color scheme make the 3G a significant improvement over it's predecessor. One place that Apple is improving upon is price, or so they say. As stated above, the original iPhone cost $400 per unit, and the new 3G version is supposed to cost $200. This would make the new one cheaper.
The problem lies in the fees AT&T is charging to use the device on their network, the exclusive network in the U.S. For the iPhone. The cheapest voice plan available for the 2G iPhone sits at $39 a month for 450 minutes, and this stays true for the 3G model, however that's where the plan's similarities end. The original iPhone has a $20 data plan, and 200 SMS messages per month included. Compared to the 3G, which has a $30 data plan and no included messages, you are losing money. To compensate for the lack of included SMS messages, you can get a plan for $5 that gives you 200 messages a month. This means that the 3G plan costs $15 more than the original iPhone per month. Over two years it will end up being $160 more for the 3G phone than the original, with the 3G coming in at $1,975 after two years and the original costing $1,815 after two years. While this may not be that much over a two year period, it is still substantial, however most will agree that the increased speed is well worth the increased price.
