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

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

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.

Categories: Opinions Tags: , ,
  1. Morty
    November 20, 2008 at 4:41 pm

    Wow…great outline of the cost analysis. I figured one would pay a premium for such a nifty gadget, but $1800? $600 annually?

    I am the first to acknowledge my reluctant approach to new technologies. This is yet another device that could be classified as ‘just because we can, doesn’t mean we should’. Perhaps it is a stretch to compare the iPhone to the atom bomb, but its actually use (outside of sheer convenience) could easily be questioned.

    I look forward to your other parts!

  2. November 20, 2008 at 7:57 pm

    Yes, but can you really but a cost on awesome? That rhetorical. The answer is no.

  3. Evo
    November 20, 2008 at 4:28 pm

    I’m hoping that cost analysis will be updated to include the cost of the various apps you’re likely to buy over the course of the phone’s life. And let’s not forget replacement batteries, since Apple never gets the batteries quite right. Might as well throw in the cost of upgrading to the next iteration, since you’re obviously going to want it!

    (Ok, I’ll wait quietly for Part 2…)

    Mort – of course you’re reluctant, it’s still in the early adopter phase. If you could get one for $100 on a one-year contract with a $60 monthly bill equivalent to what Dipp’s got now, would you even hesitate? Cost is the only deterrent here for most people (except those that just don’t like touchscreens). Intrinsically there’s no question people should be using tech like the iPhone. It’s the first truly convergent handheld device, I think the majority of people could find a use for it.

  4. November 24, 2008 at 8:53 pm

    The iPhone could very well end up turning into the handheld device that you see everyone in the future using for day-to-day use (see: Star Trek [what]). The myriad things you can already do with an iPhone fuck up my brain. Higgins showed me an app that can stream video and audio to a web address. On Scene reportage, anyone? I think the VOiPhone (trademarked, natch) that Higgins wrote about here, with the 3G network just in case, and with a municipal wifi program in place… well, I think it would usher in an era of golden futurity and progress.

    Only if people can afford to buy one, of course. And that’s the problem. Make it $100 up front and $50 per month (like, 6 gigs data and unlimited phone/text), and you’d have a reasonable fee. That’s still out of some people’s price ranges, but with the muni-wifi, you’ll get more people online anyway, iPhone or not, and that’s a really good thing.

    In conclusion, I should be able to get a decent, free wifi signal anywhere in the GTA. City Hall should hook that shit up. Let’s get a committee formed.

  5. December 1, 2008 at 3:08 am

    Nice post u have here 😀 Added to my RSS reader

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