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Archive for November, 2008

A Siren’s Call, The 3G iPhone – Part 1 of 3

November 18, 2008 5 comments

I remember the awe that I felt when they released the 1st generation iPhone and my ferocious desire to own this piece of technological history. Not so much a phone, but a personal computer that fit in your pocket, could cuddle with you at night and complete you in a way a significant other never could. My maddening desire was compounded by the lack of availability in Canada.

After pleasuring myself (numerously) to its sleek lines, internet everywhere capability and natural functionality I put it into the back of my mind until news came of a Canadian release.

My fervour returned with a vengeance when the news finally came that Rogers was going to be selling the iPhone in Canada this summer!

A month before release date something extraordinary happened: The Analyst inside me punched The Consumer inside me in the face and insisted that I think long and hard before spending our hard earned money. Fearing a similar fate as the The Consumer I promptly got to taking a second look at the 3G iPhone offer for Canadians.

My analysis revolved around three topics: (1) True Cost, (2) Functionality, (3) The Future

(1) Dolla, Dolla Bills

Money is a precious commodity and influences many (if not all) purchase decisions in the average person’s life, so true cost is a good place to start my analysis.

There are two costs associated with the iPhone – one time costs and monthly fees. Note that this analysis takes place during the summer when Rogers reluctantly offered a 6GB of data option when consumers lost their minds at the initial pricing plans.

One Time Costs

iPhone – $300
Activation Fee – $35

The total is $335.00 and when you add 13% in taxes it comes to $378.55.

Monthly Fees

$25 – Current Rogers Voice Plan
$30 – 6 GB Data Plan option
$15 – Visual Voicemail option
$6.95 – System Access Fee
$.50 – Emergency Access Fee

The total is $77.45 and when you add the 13% in taxes it is $87.52 per month.

But WAIT! I would have to get locked into a three year contract to get the iPhone; so over three years I would pay $87.52 x 36 = $3150.72.

I currently pay $48/month (taxes, features, everything included) so over three years I am going to pay $1728.00 regardless…I still need a cell phone.

Final cost of 3G iPhone

$3150.72 – $1728.00 = $1422.72
$1422.72 + $378.55 = $1801.27

The iPhone will cost me around $1800 excluding any accessories or applications I choose to purchase. Serious money? Yes. Is it worth it? We’ll find out more in Part 2 of 3 of my iPhone series when I explore functionality of the iPhone and figure out where it fits in my life.

If you have any questions, concerns, rage or question with my crazy math skills feel free to post a comment.

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