So, I’m trying to work this out, and I figured here was as good a place to take notes as any other.
I really really really want a new iPhone. Really. I do not have a camera, my mp3 player is dying, and my current phone has extremely limited email/chat/browsing features (which is to say, none at all). So, I figure, for $199 I can just get me one of those hot little gadgets and kill all the birds at once.
So, here’s the question: How much will it actually cost me to switch to the iPhone?
The costs associated with switching are these:
- The phone itself: $199
- Monthly data service: $30
- Monthly voice service for 900 min*: $60
- 200 Monthly text messages: $5
- Early termination fee to get out of my current Sprint contract: $200
*I talk to my mom and my boss more than everyone else put together. They are both on Sprint, so I don’t pay for the time I’m talking to them. If I change to AT&T, then I’ll have to double my minutes to have enough time to talk without those nasty overage charges.
This means that the first year that I own it, my shiny new iPhone will cost me roughly $1670, including taxes. Okay, let’s look at the alternative now:
- The phone itself: Already owned
- Monthly data: Not applicable
- Monthly voice service for 450 minutes*: $40
- 500 Monthly text messages: Free because of my loyalty to Sprint.
So, for a year of staying with Sprint and keeping my non-browsing, non-mp3-playing, non-photo-uploading phone, it will cost me around $530 with taxes.
But wait! That’s WITHOUT the camera, the web browsing, or the mp3 player, so, let’s get real crazy and add these: an 8G iPod Touch does music and email/web browsing and costs about $323 (price with tax), and a Canon PowerShot 8mp Camera with 4x zoom for $250 (price with tax).
So, in corner #1 we have the new iPhone 3G: $1670 for a year.
In the opposite corner, we have a non-sexy but working phone, a really nice fancy new mp3 player and a pretty decent point and shoot camera: $1103 for a year.
Total difference is an estimated $567. Is it worth that much to have only one piece of hardware instead of three? Is it worth that much to have the fantastic conversation piece and status symbol of the iPhone?
And there are other factors. For example, the camera and mp3 player would not show up as deductions on this year’s tax returns, but the iPhone and associated costs would. Plus, there’s the obvious increase in photo quality from a phone to an actual camera. Not to mention the ease and benefit of having a browser in my phone. And also, how crazy is it that it seems like the unlimited mobile-to-mobile inside of Sprint’s network is actually the deal breaker?
In the end, it seems that Apple sort of sold their soul to AT&T. If the iPhone was open for any mobile provider, this would be a no-brainer for me. Bummer.
Just came across your sight, via Twitter (that sounds kinda spammy). I’m also in the Seattle tech scene and just wrote a blog post on this topic the other day.
I think the iPhone will actually pay for itself. It’s possible to justify it at least.
http://www.otiskimzey.com/2008/06/10/the-iphone-3g-will-make-you-money/
Resist the temptation! Really I just hate the whole trendoid mentality associated with Apple products.
But, if you must, you may be able to wiggle out of the early termination fee, if you play your cards right. Or consider all of the awesome alternatives that Sprint carries, and stick with Sprint? Unless you hate them.
But remember, ATT is worse. Much, much worse.
Have you thought about the ipod touch? My son has one and really likes it. True, you don’t have internet everywhere, but he is mostly in places where there is wireless and he avoids all the extra phone bill charges. Note also that with more than one appliance, you don’t lose everything if you break or lose one.