How does the iPhone stack up in total cost?
By Ryan Block 
posted June 26th 2007 3:43PM
posted June 26th 2007 3:43PM
It's no secret or surprise that Apple pushed AT&T into whipping up some new plans for the iPhone -- specialness aside, one look at AT&T and users can get lost in its myriad plans, 44 in all (including prepaid, data, etc.). Not exactly the streamlined customer Apple experience cherishes, so the iPhone just comes with just a few service options (and not a lot to configure) -- but is there really the "Apple premium" associated with buying an iPhone and using the iPhone plan with AT&T? Only one way to find out: let's look at the numbers.
A note on AT&T data plans
We know AT&T has a lot of data plans to choose from, and your average AT&T CSR would have told us that to match the iPhone's service features your average smartphone user would need to buy the PDA Personal plan (for $30 a month) with a $5 200 SMS add-on. (According to Apple, iPhone users can sign up for this, or any other data plan they choose.)
The reality is a lot of in-store reps will just give smartphone users the MEdia Max 200 bundle, which their non-smartphone unlimited data + 200 SMS plan -- but costs $15 less per month (at $20) and is a lot closer to what you'd be paying for the iPhone. We know this isn't the "official" way of comparing AT&T's listed prices, but it's certainly the most fair real world scenario. Ready to dig into the numbers that dig into your wallet?
All prices listed include current rebates and promos (where available), valid as of June 26th.
| iPhone 4GB | iPhone 8GB | 3125 | BB Curve | BB Pearl | Treo 750 | BlackJack | 8525 | |
|---|---|---|---|---|---|---|---|---|
| Base price | $500 | $600 | $350 | $450 | $400 | $550 | $325 | $600 |
| Price (2 yr) | $500 | $600 | $100 | $200 | $150 | $200 | $75 | $300 |
| Speed | EDGE | EDGE | EDGE | EDGE | EDGE | 3G | 3G | 3G |
| Data plan | iPhone plan | iPhone plan | MM200 | BB Internet | BB Internet | MM200 | MM200 | MM200 |
| Data cost | Included | Included | $19.99 | $34.99 | $34.99 | $19.99 | $19.99 | $19.99 |
| Base / month | $79.99 | $79.99 | $59.99 | $59.99 | $59.99 | $59.99 | $59.99 | $59.99 |
| Cost / month | $79.99 | $79.99 | $79.98 | $94.98 | $94.98 | $79.98 | $79.98 | $79.98 |
| Cost / year | $959 | $959 | $959 | $1,139 | $1,139 | $959 | $959 | $959 |
| Cost / 2 years | $1,919 | $1,919 | $1,919 | $2,279 | $2,279 | $1,919 | $1,919 | $1,919 |
| Total cost | $2,419 | $2,519 | $2,019 | $2,479 | $2,429 | $2,119 | $1,994 | $2,219 |
Plan cost comparison done with base iPhone plan contrasted with closest available AT&T minute plan and MEdia Max 200 bundle. Cost does not include activation fees.
| Individual plan | ||||||||
|---|---|---|---|---|---|---|---|---|
| iPhone 450 | Nation 450 | iPhone 900 | Nation 900 | iPhone 1350 | Nation 1350 | |||
| Minutes | 450 | 450 | 900 | 900 | 1350 | 1350 | ||
| Unlimited data | x | $19.99 | x | $19.99 | x | $19.99 | ||
| (Visual) voicemail | x | x | x | x | x | x | ||
| SMS | 200 inc | 200 inc | 200 inc | 200 inc | 200 inc | 200 inc | ||
| Nights + weekends | 5000 | 5000 | unlimited | unlimited | unlimited | unlimited | ||
| Rollover | x | x | x | x | x | x | ||
| Unlimited M2M | x | x | x | x | x | x | ||
| Activation fee | $36 | $36 | $36 | $36 | $36 | $36 | ||
| Monthly service | $59.99 | $39.99 | $79.99 | $59.99 | $99.99 | $79.99 | ||
| Total cost per month | $59.99 | $59.98 | $79.99 | $79.98 | $99.99 | $99.98 | ||
| Cost for 1 year | $719.88 | $719.76 | $959.88 | $959.76 | $1,199.88 | $1,199.76 | ||
| Cost for 2 years | $1,439.76 | $1,439.52 | $1,919.76 | $1,919.52 | $2,399.76 | $2,399.52 | ||
| Individual plan (with extended minutes) | ||||||||
|---|---|---|---|---|---|---|---|---|
| iPhone 2000 | Unity 2000 | iPhone 4000 | Unity 4000 | iPhone 6000 | Unity 6000 | |||
| Minutes | 2000 | 2000 | 4000 | 4000 | 6000 | 6000 | ||
| Unlimited data | x | $19.99 | x | $19.99 | x | $19.99 | ||
| (Visual) voicemail | x | x | x | x | x | x | ||
| SMS | 200 inc | 200 inc | 200 inc | 200 inc | 200 inc | 200 inc | ||
| Nights + weekends | x | x | x | x | x | x | ||
| Rollover | x | not inc | x | not inc | x | not inc | ||
| AT&T unity minutes | not inc | x | not inc | x | not inc | x | ||
| Unlimited M2M | x | x | x | x | x | x | ||
| Activation fee | $36 | $36 | $36 | $36 | $36 | $36 | ||
| Monthly service | $119.99 | $99.99 | $169.99 | $149.99 | $219.99 | $199.99 | ||
| Total cost per month | $119.99 | $119.98 | $169.99 | $169.98 | $219.99 | $219.98 | ||
| Cost for 1 year | $1,439.88 | $1,439.76 | $2,039.88 | $2,039.76 | $2,639.88 | $2,639.76 | ||
| Cost for 2 years | $2,879.76 | $2,879.52 | $4,079.76 | $4,079.52 | $5,279.76 | $5,279.52 | ||
| Family plan | ||||||||
|---|---|---|---|---|---|---|---|---|
| iPhone 700 | Nation 700 | iPhone 1400 | Nation 1400 | iPhone 2100 | Nation 2100 | |||
| Minutes | 700 | 700 | 1400 | 1400 | 2100 | 2100 | ||
| Unlimited data | x | $19.99 | x | $19.99 | x | $19.99 | ||
| (Visual) voicemail | x | x | x | x | x | x | ||
| SMS | 200 inc | 200 inc | 200 inc | 200 inc | 200 inc | 200 inc | ||
| Nights + weekends | unlimited | unlimited | unlimited | unlimited | unlimited | unlimited | ||
| Rollover | x | x | x | x | x | x | ||
| Unlimited M2M | x | x | x | x | x | x | ||
| Additional lines | $29.99 | $9.99 | $29.99 | $9.99 | $29.99 | $9.99 | ||
| Activation fee | $36 | $36 | $36 | $36 | $36 | $36 | ||
| Monthly service | $80.00 | $69.99 | $100.00 | $89.99 | $120.00 | $109.99 | ||
| 1 line per month | $80.00 | $89.98 | $100.00 | $109.98 | $120.00 | $129.98 | ||
| 2 lines | $109.99 | $119.96 | $129.99 | $139.96 | $149.99 | $159.96 | ||
| 3 lines | $139.98 | $149.94 | $159.98 | $169.94 | $179.98 | $189.94 | ||
| Cost for 3 lines, 1 year | $1,679.76 | $1,799.28 | $1,919.76 | $2,039.28 | $2,159.76 | $2,279.28 | ||
| Cost for 3 lines, 2 years | $3,359.52 | $3,598.56 | $3,839.52 | $4,078.56 | $4,319.52 | $4,558.56 | ||
| Family plan (with extended minutes) | ||||||||
|---|---|---|---|---|---|---|---|---|
| iPhone 3000 | Nation 3000 | iPhone 4000 | Nation 4000 | iPhone 6000 | Nation 6000 | |||
| Minutes | 3000 | 3000 | 4000 | 4000 | 6000 | 6000 | ||
| Unlimited data | x | $19.99 | x | $19.99 | x | $19.99 | ||
| (Visual) voicemail | x | x | x | x | x | x | ||
| SMS | 200 inc | 200 inc | 200 inc | 200 inc | 200 inc | 200 inc | ||
| Nights + weekends | unlimited | unlimited | unlimited | unlimited | unlimited | unlimited | ||
| Rollover | x | not inc | x | not inc | x | not inc | ||
| Unlimited M2M | x | x | x | x | x | x | ||
| Additional lines | $29.99 | $9.99 | $29.99 | $9.99 | $29.99 | $9.99 | ||
| Activation fee | $36 | $36 | $36 | $36 | $36 | $36 | ||
| Monthly service | $160.00 | $149.99 | $210.00 | $199.99 | $310.00 | $299.99 | ||
| 1 line per month | $160.00 | $169.98 | $210.00 | $219.98 | $310.00 | $319.98 | ||
| 2 lines | $189.99 | $199.96 | $239.99 | $249.96 | $339.99 | $349.96 | ||
| 3 lines | $219.98 | $229.94 | $269.98 | $279.94 | $369.98 | $379.94 | ||
| Cost for 3 lines, 1 year | $2,639.76 | $2,759.28 | $3,239.76 | $3,359.28 | $4,439.76 | $4,559.28 | ||
| Cost for 3 lines, 2 years | $5,279.52 | $5,518.56 | $6,479.52 | $6,718.56 | $8,879.52 | $9,118.56 | ||
The bottom line
Shockingly enough, iPhone users actually stand to save a decent chunk of change if they're on family plans -- but for the most part the significantly higher cost of the device will offset that savings there as well as in comparable individual plans. It's just really hard to argue with a $75 BlackJack, you know?
But to put this another way: those worried that your iPhone will cost you a lot more in service fees than you'd pay otherwise, worry not. You're (obviously) going to pay more for the device itself, but the iPhone plans are totally fair, based on AT&T's current pricing scheme.
P.S. -We're sincerely hoping we didn't fudge any of those numbers, but please let us know if they don't quite add up!
The numbers for the family plan are not correct.
AT&T's basic 700-minute Family Plan is $69.99 for the first two lines. Each additional line after the first two is another $9.99. The chart is incorrect because you added $9.99 for the second line, but that is included.
The question is whether adding a second non-iPhone, non-data line to the iPhone Family Plan will also cost $9.99, or whether that price is included in the iPhone's $80 Family Plan rate. The information on Apple's website is inconclusive, because it says that the $80 price includes "one line," and that adding an additional "iPhone line" costs $29.99. But does the base price include a regular line and an iPhone line or just an iPhone line?
AT&T updated their website. Adding a second line (non-data, non-iPhone) will cost an additional $9.99. So the total cost for a Family Plan with two lines (one iPhone, one regular) will be $89.99.
"They made a mistake. For 3G phones you usually have to get the $40 data package. "
Wrong. $20 Media Max is for any regular (not smartphone) cell phone, 3G or 2.5G. I know that for a fact because I have it for my 3G CU500.
The iPhone is getting regular cell phone pricing for its data instead of smartphone pricing.
I currently have a beaten up e815 with Verizon's internet service, so I'm thinking about the iphone because I have to upgrade anyway. Can anyone give me an objective perspective on what the actual speed is of EDGE, and whether it's going to be *that* bad. I know slingbox doesn't even have an app for this yet, and may never, but if they do would it run decently on EDGE speeds? Will the recent AT&T EDGE bolstering help the speed? I know people are going crazy about the lack of 3G, but as long as it's tolerable, I don't mind a bit of slowness to access the internet. If I need something that fast or a file that big, I can always use my actual computer. Thanks for any insight.
Problem is it cost the same as a computer
I was just thinking about the division of equipment and service under this new paradigm. Does anyone know if that means AT&T has no "early cancellation" fees for the iPhone plan?? I can't see them passing up the opportunity to ream anyone for leaving, but the early termination fees are usually to get back the cost of the equipment the carrier "gave" you for cheap/free.
I highly doubt AT&T would actually let people out of iPhone contracts for free, but you never know. It only seems right that they can't bind you, since you are paying for the equipment. I suppose we'll find out in a couple of days...
For what it is worth, the pure value of a better interface is priceless. I hate my Treos, Palm OS sucks, windows mobile sucks even harder, and I've yet to see another OS peak my interest. The cost of easy user interface (once proven) is worth my $600!
PS- As was already mentioned, don't forget the expense of getting anyone of the "smart" phones loaded up with 4GB of memory.
I don't think they care if you cancel the fee they use to "makeup" for the subsidized price of the phone. Since you are paying full value they aren't "losing" and since you have paid activation and probably at least one month they have nothing but profit. Plus the phone I still believe have no SIM card so what do you do with you 500-600 i Phone, especially if like a few posts said before the ipod function only works when the iPhone is activated on an ATT line.
I'm not being a hater or a fan boy but no one can seriously expect to pay less overall after paying on average lets say $300 more for the phone allow. I looked at a few of the numbers and I have had Att/Cingular for a bout a few months, they charge fees allot, a lot more than my Verizon phone but that’s not even the point. When I did have Cingular I had a Black for data alone and while my bill was supposed to be 19.99 with my company discount they charged 34.99 this was January. Have things changed that much or am I the only one with access to the regular media plan and free BB Pearl? And since when was the BB plan more it that just another discount I have. I'm not going to be an iphone hater but don't with a straight face try to convince me that it is going to be this money saving miracle second coming. it will be an expensive nitch luxury toy ala the PS3 which people will buy be stuck with for 2 years less they toss the 500-600 dollars and $175 termination fee out the window particularly since to my understanding it has no SIM card to swap out.
Paying 300 dollars more for a phone does not equal saving in the end lets be serious and use common sense.
stop with the no sim card thing. go to david pogue's review on nytimes.com. there's a very obvious slot right on top. there's a graphic on the review to confirm it. and check out those pics. much better than any camera phone i've had, short of maybe the n80.
All talk of pricing aside, Windows Mobile 5 is a heap of crap. Windows Mobile 6 doesn't look much better. Add on the cost of a second phone for WM-induced phone rage that results in the first getting crunched against the wall.
It looks like ATT is not bringing anything special to the party. The $20/month unlimited data per iPhone plan is much the same as the existing $19.99 smart phone plan. The rest of it is the same old ATT plans, except they don't allow the lowest level family plan. Also, with real email and internet, SMS becomes worthless. True apps would further allow VOIP making even voice minutes almost worthless. The visual voice mail is all Apple, and should help cut your minute usage as they can send it ahead as data and store it on your phone. The requirement for a 2-year plan may be based on the rummored $8/month that ATT must pay Apple, otherwise they should have a corresponding discount when you responsible for bringing your own fully paid phone. The true cost of the phone should be fully covered by the purchase cost as parts cost estimates are in the $250 range. The rest is just building an income stream based on what the market will bear. With ATT doing nothing special to take advantage of this op,ortunity the possibility of huge market share gains are limited.
It remains to be seen how useful the iPhone is as a computer. Safari on the PC does not let you browse local files as other browsers do while on the Mac it switches to Finder. Without the Finder/File Manager function it does not really have the most fundamental characteristics of a real computer. Server resident, web based file management and creation apps may be the only way to get this functionality.
Other questions remain unanswered:
Can external devices be hooked up and controled through an adapter as you can with an iPod?
Will it tether to a laptop to bring EDGE to a real computer?
actually if you are a student, its much cheaper to just buy an unlocked phone (e.g. nokia n95,
or sony ericsson w960), go for pay as you go, and mostly call through wi-fi (the campus and home is wi-fi covered) basically for free.
the total for me (based on previous expenses) would be around 1200$ for 2 years.
I'm excited about the phone but regardless of the plan cost (even with family), it's still going to be quite expensive for some. We need to see more mobile companies offering an incredibly low monthly rate for unlimited data access. Then we will see the mobile net truly expand.
How much to make my sms text limit 1000 or more?
Great chart! Is there anyway you can do a comparision against Sprint and Verizion (for example the new 6800 (you can get it on ebay for $99 with a 2 year - so that would be the lowest price).
I have several people asking me (who have the 6700 and are looking at the iPhone). I told them it would be about $400 more than Sprint over a 2 year? Am I misleading them?
Ok. First off, i work for Cingular/AT&T currently. Officially you are not supposed to have the MEdia Max plans on PDA's with touchscreens. In the real world the phone works the same with PDA or MEdia Max plans. I have signed a friend up with an 8525 on the MEdia Max 200 (19.99) and he downloaded over 1gB of data for 3 consecutive months and his plan was never switched (he hit 1.8 gigs on one month). The blackberry rate plan is 29.99, although the brochure says 34.99 it also lists a $5 discount. So the iPlan is the exact same as the other plans, and you can use those other plans anyway for it. So this whole comparison could be chopped down to just the cost of the phone and save column inches and a tremendous waste of time.
So all you need is a 3G phone and MM200 and you get 3G? I thought you would only get 2G u8nless you pay more. Also, do you have to do something special to tether or does it work out of the box? WEB on little screen=lame
if upgrading your current plan will we get to keep our rollover minutes?... will the plan have rollover minutes?.... will it have a service plan?...what about microsoft office applications? i havent seen any of these questions yet.
75 dollar blackjack boo to that i paid 25 for an N75 from amazon
Wtf 60$ a month AND you have to pay for the iPhone as well. In europe most deals are 20 - 30 euro a month and then the (top of the line) phone is FREE.
So much iPhone bash in these comments! And in the article picture too, har. Bad pun intented.
So an iPhone /w Plan - costs as much as a fully featured,
Quad Core Mac Pro ?!?
Now that is salesmanship!
The mighty Jobs does it again!
I keep seeing random posts about what the iPhone has (software-wise) and what it doesn't. What most people don't seem to recall is that this phone is built on OSX... It's very possible and very foreseeable that Apple will implement a whole new slew of features (via updates) as sales start to wane or as wants/needs begin to increase.
You can also expect a helluva lot of accessories that will make the iPhone do insane things. Take a look at the massive iPod accessories market and you'll have no doubt.
It's not difficult to expect something similar to Remote Desktop via iPhone in this or future generations. Imagine browsing all your files on your home computer/server with ease. Your Mac and iPhone will know each other intimately so security becomes that much stronger. There is potential that Leopard and future iPhone updates may include such a feature. Leopard's iChat will include "Screensharing" which will allow remote sharing of a desktop. This could lay the groundwork for remote desktop control via iPhone. (*all speculation)
**In theory, you could access your files using the iPhone and OSX's built-in web server (Apache).
This is not a PDA. It is a small, mobile Mac running OSX (one of the best OSs on the market), and it happens to have a phone. The comparisons are Apples to Berries... Literally.
Hope for the European customers that the costs for the 2y contract will be a little lower, cause this isn't going to do any good for the extensions of the contracts
They added it up wrong!!!! If you notice in the last 2 tables designated family plan and family plan extended. For all of the Nation plans, it cost 9.99 to add an exta line. How ever for each additional line the added 29.99 instend. This dramatically overestimates the cost for 3 lines over 1 to 2 years. So in actuallity the nation plans are far cheaper than the iphone plans. I hope you guy/girls can see what I mean.
FYI, another iPhone cost to factor in is a potential $250 deposit AT&T Wireless is starting to ask of some customers before allowing them to activate the phone. You won't know if this applies when you buy the phone in the store, since they don't tell you. You'll have to bring it home and try to activate it before you'll know if you have to cough up another $250 on the spot before activation.
Details: http://www.essistme.com/2007/07/23/beware-of-possible-250-extra-expense-when-buying-the-iphone/
I had an ATT 8525. I got it off of Amazon for $80 for two years. The way I calculate it, over the course of two years, the total price of the phone plan without tax, activation or anything, including the phone, would be $2000. ($80 dollars a month times 24 months plus $80 for the phone) That's with a $40 voice plan and a $40 data plan. However, the iPhone plan including the phone would be $2040. (60 dollars a month for 24 months plus $600 for the phone.) So, for me, theoretically, the iPhone would be $40 more expensive after two years. That's not much of a difference is it?
P.S. I'm just rounding the prices to the nearest dollar because it's easiest to use. And most prices are within one cent.)
Any chance you guys can update these calculations with the new prices announced today?
Not sure if anyone has already mentioned this, but you also forgot to include the upfront cost of a equivalently storage card for non-iPhones.