iPhone… Cheaper Than The Sum Of Its Parts
Earlier today it occurred to me that the iPhone is actually a pretty good deal.
That may be a little hard to accept considering the 16 GB model is currently selling for $499, requires a two-year commitment to AT&T Wireless, and, unlike most every other AT&T cellphone, offers no subsidy, but when you step back and think about it, it actually is. And come June a good deal will get a whole lost better. Let me explain…
When we were first introduced to the iPhone to little more than a year ago we were told that Apple was introducing three new devices, a cell phone, a widescreen video iPod, and a Mobile Internet Device (MID). The hall at MacWorld exploded with applause when Stevo then announced that all three devices would come in a single, sleek package- the iPhone.
Yet while the device was far from inexpensive, especially at its initial premium price, when one took each component individually it wasn’t a bad deal either.
The breakdown might go something like this–
Smartphone-
$99-$299 (contract price)
Memory Card-
$50-$100
iPod-
$149- $349
MID-
$200-$500
In other words, if you were looking to purchase all three devices the LEAST expensive combination would still cost $500. So the iPhone wasn’t all that bad a deal after all.
In June, that “not a bad deal” will get a whole lot better. Why? Because in June the iPhone will no longer be three devices- it will be four.
In June the iPhone will be the best smartphone / video iPod / Mobile Internet Device / Handheld Gaming Device EVER!!!
And when you consider that a PlayStation Portable costs $150+ and a Nintendo DS Lite costs $120, $499 for a 16GB iPhone doesn’t seem outrageous.
Expensive? Yes.
Unreasonable? No.
So the equation looks something like this–
Super smartphone? $200
Memory for it? $75
Video iPod? $249
Mobile Internet Device? $400
Handheld Gaming Device? $150
Having them all wrapped up in one shiny Apple product? Priceless.
That’s assuming they can do a decent job with the iPhone games. I’ve really been unimpressed with non-console mobile gaming so far, but I would LOVE to be pleasantly surprised by 3rd party devs.
Cell phones are almost always sold cheaper than their cost.. hence the contracts
Ragart- personally that quickly produced space-fighter game that was shown at the SDK presentation looked GREAT to me.
To a large degree this only holds if you WANT all four devices. If you ONLY want a smartphone it is a pretty expensive way to go. If you ONLY want an iPod, $499 for 16gb is outrageous. If you ONLY want a portable gaming device $499 is super high. If you want a MID, the Nokia N810 is a lot cheaper (but you need to also buy SD cards for it). If, however, you want any two of the four it becomes a lot more reasonable.
Mike- you are correct BUT most other AT&T phones give you a steep discount as part of the contract subsidy.
I figured this out right after I bought my iphone. I bought a 16GB version for $499. I then sold my used Nokia 770 for $220. I sold my 8GB 3G ipod nano, my old cell phone (a crappy old slvr) and my “bonus” phone* on craigslist for $350. I ended up making about $70 on the deal by trading in things that I already owned but didn’t use. I realize not everyone has unused other devices laying around to trade for iphones, but in my situation I get 100 times more use out of my iphone than I ever did from the other items combined.
*Bonus phone = the free phone I got from an AT&T store for signing a 2 year contract with them 10 minutes after I bought my iphone, but 10 minutes before I activated it.
nacho
Great example of the point I was trying to make. And the especially great thing about the iPhone is that it is, in my opinion, better at the specific functions that each of those other devices performed. And that doesn’t even take the upcoming additional functionality that June will bring.
ain’t ebay the best!?!? As someone who frequently upgrades his devices I am a huge fan of the “online garage sale” site.
I sold both my 8gb iphone and a 4 gb iPod nano for a good price so few only a few dollars i got double the capacity, a brand new warranty and a brand new battery. Not a bad deal.
sorry … FOR only a few dollars.