iPhone 3G: $199 price is good, $60 monthly bill not so much

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That's my analysis of the iPhone situation.

A dramatic price drop for what is admittedly the coolest gadget out there is a significant breakthrough.

But paying AT&T $60 per month or more, even with the promise of unlimited 3G Web access, is just too much — for the likes of me, anyway.

For those willing to pony up the $720/year (plus whatever fees and taxes can be sneaked in), 3G represents a significant performance boost for iPhone users.

And it's still the coolest device out there.

Drop the monthly fee to $30, and I'll be a whole lot more interested.

Lower the price of the iPod Touch (like an iPhone without the phone) to $199, or even better, $99, and me and my money will soon be parted.

My predictions:


  • The iPhone 3G will kill off what little is left of the Palm platform, and every other handset maker is going to be in a whole new world of hurt.

  • Expect cell carriers that are not AT&T to be clamoring for the opportunity to offer the iPhone. Hopefully a price war of sorts will ensue.

  • Look for Google to either put a full-court press on its Android platform or begin offering a Google-branded handset.

4 Comments

Julia Scott Author Profile Page said:

You are holding out for $30 a month for cell service - does anybody even offer that?? If so, sign me up! I thought most plans start at about $50.

Most of the cell-phone service plans seem to start at $40 for voice (no data).

I guess if you don't have a land-line telephone, spending $80 for two cell phones might be warranted.

There are $30 cell-phone plans. Not many, but some.

I continue to think that this kind of thing is just too expensive.

I have Web service at home for $20 a month.

I don't have cable or satellite.

Every time you put out between $20 and $100 for a monthly service, those things really add up.

Like I say in my column coming out this Saturday, I'd rather get an iPod Touch and use it for Web when I can get a free WiFi signal. I don't need all-the-time/everywhere connectivity, especially at $70-$100 a month.

Tom Gapen Author Profile Page said:

Don't expect any other carriers to be competing with ATT to offer iPhones any time soon since the Apple/ATT contract gives ATT exclusive rights for the first five years, which we are almost exactly one year into.
Ugh!

Steven Rosenberg Author Profile Page said:

AT&T must be kicking a lot of that money back to Apple and trying to make it up in volume.

Even with the data plan going from $20 to $30, which is what everybody else pays, the fact that you can get an iPhone for $199 — the same price as a Blackberry — means that Apple is really playing to win in the smartphone space.

About the only sticking point I can see is hard-core e-mail users preferring the Blackberry keyboard to the iPhone touchscreen.

And will Windows Mobile and Palm OS even be here (or relevant) in six months?

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Steven Rosenberg on iPhone 3G: $199 price is good, $60 monthly bill not so much: AT&T must be kicking a lot of that money back to Apple and trying to m ...

Tom Gapen on iPhone 3G: $199 price is good, $60 monthly bill not so much: Don't expect any other carriers to be competing with ATT to offer iPho ...

Steven Rosenberg on iPhone 3G: $199 price is good, $60 monthly bill not so much: Most of the cell-phone service plans seem to start at $40 for voice (n ...

Julia Scott on iPhone 3G: $199 price is good, $60 monthly bill not so much: You are holding out for $30 a month for cell service - does anybody ev ...

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