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 […]
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iPhone… Cheaper Than The Sum Of Its Parts

Earlier today it occurred to me that the iPhone is actually a pretty good deal.

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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.

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