iPhone Price

iPhone price, cost of ownership and maybe price tweaks?

There are two main methods of calculating the total cost of owning an iPhone over the two-year commitment period:

total cost and marginal cost.

Aen entry level $59.99 personal plan will cost $1,439.76 over 24 months (prior to adding taxes and FCC fees). This places the total cost of iPhone ownership at $1,938.76 for the 4GB model, or $2,038.76 for the 8 GB model.

(The 2-year cost of the no-contract option described above is around $2,075, for a total ownership cost of $2,575 or $2,675 depending on iPhone model.)

However, with the overall cell phone penetration currently at 77% in the US, it's realistic to assume that mos,t if not all iPhone buyers are already mobile phone users and therefore switchers. Marginal cost may appear to be a better way to calculate iPhone's price. The data portion of iPhone's cost, which is what makes iPhone distinctive from a Internet-free mobile phone, is $480 over 24 months. This puts the marginal cost of upgrading to an iPhone $979 or $1,079, depending which GB model you choose.

However you figure it, iPhone is not an inexpensive device, gadget, cell phone, mp3 player or widescreen video player.

Finally, it's worth nothing that new customers can cancel their AT&T service within 30 days of activation. This makes iPhone a WiFi-only device. Many think this removes much of iPhone's value; products such as the Nokia N800 Internet Tablet offer more Internet functionality (though less elegance and ease of use) at a lower price. But the option is there. Nokia have a massive market, but Apple do have that valuable, almost cult-like following. Mny see Apple as pioneers in their product division, and it would be hard to disagree with that notion.

There have been rumours of price tweaking funneling around the internet lately, leading to much speculation in which format would the cost tweaks be. Perhaps a cheaper, simpler veersion of the iphone, maybe an iphone nano? Time will tell, but iPhone seems to be here for the long haul. Prepare for a turbulent but enjoyable ride!