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the bofe blog

a twenty something IT professional with a few things to say

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iPhone? iMight

January 25, 2007 by bofe

I’m already a Cingular/ATT customer now. I’m okay with the iPhone forcing that.

What I’m not okay with is the total cost of the iPhone. $1936 for the first year? WHAT!? Let’s investigate!

I’m currently dropping about $756 a year on my phone (including fees/tax). Let’s see… I could buy a really nice iPod for $249. I could buy a nice GPS addon for $129/year, and a phone that supports it with a contract renewal for under $300.

iPhone

Total for year 1: $1936. Year 2’s total is $1296. TCO for two years: $3232.

iPhone, no data plan

Total for year 1: $1456. Year 2’s total is $816. TCO for two years: $2272.

Components, no Data Plan

Purchasing New Phone: (one time cost) – $300
Yearly Phone Plan: $756
Purchasing New iPod: (one time cost) – $249
Yearly GPS Fees: $119.88
Total for year 1: $1424.88. Year 2’s total is $875.88. TCO for two years: $2300.76.

Components, with Data Plan

Purchasing New Phone: (one time cost) – $300
Yearly Phone Plan: $756
Purchasing New iPod: (one time cost) – $249
Yearly GPS Fees: $119.88
Yearly Data Fees: $480
Yearly Fees: $96
Total for year 1: $2000.88. Year 2’s total is $1451.88. TCO for two years: $3452.76.

My choice is obvious – iPhone and no data plan, if I can afford it. Consider the iPhone’s one time cost versus the component’s one time costs — $549 vs. $640. Another thing to consider is using the iPhone without a gluttonous data plan. You’d actually be better off with an iPhone and No Data Plan than buying the components separately – the $9.99/mo for GPS is what gets you!

I’ll go ahead and do this for 5 years, because that’s how long I’ve had my existing phone (or the cheapest one available in case I drop my phone in KY lake again) … and in chart form:

cost comparison chart

The iPhone without a data plan may be the route I end up going.
I-may-have-screwed-up-the-numbers-but-I-dont-think-so-Disclaimer: It’s getting late and my eyes are getting heavy.

Posted in Personal | Tagged Geek, Personal | 4 Comments

4 Responses

  1. on January 28, 2007 at 10:22 UnluckyCat

    But will the iPhone-minus-data-plan still have all the functionality you want? Part of what I liked about the demo was how easy it seemed to switch between voice calls and internet– not so much the case with other phones. I really can’t wait to play with one, but I’m not sure I’ll be buying right away.

    I’m still annoyed with cingular’s data plan rates- about 4x what I believe sprint’s charging.

    And did you add in warranty/ drop-in-a-lake coverage?


  2. on January 29, 2007 at 13:49 bofe

    I already have a warranty on my phone. “Phone Insurance” is what Cingular calls it.

    Unless my data usage drastically changes, which is very possible with the addition of a web browser, I will still go for the plan without the data plan.


  3. on February 5, 2007 at 11:18 Evan

    Why couldn’t you get unlimited data, no/yes iphone and the free mobile google maps app instead of the garmin thing?
    Granted functionality could be a large draw back. But what more can a $10 a month service do verses a free… free… free… free one do?

    Interesting too look at the long run though btw.
    Reminds me of just how much money we all piss away every month on stuff.


  4. on November 15, 2007 at 22:41 sm

    is it really possible to get an iPhone WITHOUT the data plan? And is it really worth and usable without the data plan?

    AT&T shop said that it wont be possible to use buy the iPhone without the data plan …. and also that it wont be ‘any use’ without it



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