The Cost Of An iPhone Service Plan

[barcajunior]

Here is a good article talking about iPhone service charge from TUAW.

The rub with the iPhone isn't the price of the device itself, but rather the unknown price of the phone plan you'll be required to buy along with it. When I buy an iPod, it is mine free and clear. I don't need to pay a monthly service charge (which is signed in blood) to ensure that the darned thing will continue to function. That won't be the case with the iPhone. I'm almost certain that you will not be able to buy an 'unlocked' iPhone (that is an iPhone that you can use on any network, without having to buy a plan) for at least a year after its introduction.

'But how much could a phone plan cost?'

The truth is, we don't know yet. AT&T and Apple could be cooking up some special deal for iPhone buyers, but for the sake of argument let's just look at AT&T's current rates (as listed on Cingular.com) for the type of services that you would want on your iPhone to take advantage of all those super cool features. Here's the breakdown:

450 minutes talktime per month (includes 5000 nights and weekend minutes): $39.99

Smartphone Connect Unlimited (this is unlimited data transfer, since an internet communicator is sort of pointless with a data transfer cap): $19.99

Messenger Starter (200 text messages per month, unlimited texts to other AT&T customers): $9.99

That's a grand total of $69.97 in services for your iPhone before taxes (and that's kind of on the low end of the available services. I'm sure lots of people will want more talk time, or more text messages.). Now, let's assume that Apple and AT&T will only require that you sign up for a year (I'm betting the iPhone will require a 2 year contract), that translates to about $839.64 for the first year of services (before taxes once again). Tack on $500 for the iPhone itself and you find that Apple's cool new phone is going to cost you $1339.64 (roughly).

[samg]

I know, this record keeps repeating, but i pay ?30 ($60ish) for just 500 minutes and 200 txts on my tariff. So that service plan is damn brilliant!

I bet the iPhone will stay $500 for all of a month or too, before people are giving it away with the higher tariffs.

[Garry]

The problem with posts like this is that they're entirely speculative. Nobody except Apple and Cingular know what the prices will be so how can anybody speculate, congratulate or complain at this point?

Even so, the above charges are the same for every phone on the market and the $500 up front charge for a brand new phone with the wow factor and the 'Apple Premium' isn't bad either.

[gigapixels Veteran]

IIRC, the iPhone will not be allowed to be discounted. Plans will be discounted instead to give the customer an incentive to buy. But that might have changed by now.

[Bloodwork]

You act like $70 a month is expensive...

[episode]

IIRC, the iPhone will not be allowed to be discounted. Plans will be discounted instead to give the customer an incentive to buy. But that might have changed by now.

I believe they decided to go the rebate route instead of discounting the phone directly.

[gigapixels Veteran]

I believe they decided to go the rebate route instead of discounting the phone directly.

Ah, I see. I'd just heard the other thing very soon after the iPhone was announced, so I expected that it would probably change.

[Marshalus Veteran]

If the iPhone is anything like the Treo and other "smartphone/PDAs" Cingular will require the PDA Data plan not the Smartphone plan so it'll actually probably end up costing more. $40 is the data for the Treo and the Blackjacks, so I assume it'll be the same with the iPhone NOT the $20 plan.

[rageagainstmachine]

when is it they are releasing it?

[Slimy]

when is it they are releasing it?

Next month ;)

[Berto]

I gave up waiting.

My phone carrier (Telus, in Canada) gave me a free Moto Q as part of their "Offers" they give to customers. I got myself Missing Sync for the Mac and was in business the very same night.

Nothing beats free and the Q, I've always liked it's design.

[rageagainstmachine]

Next month ;)

oooh, shiny new phones!! guessing this is just a US release initially? or UK too?

[Bloodwork]

oooh, shiny new phones!! guessing this is just a US release initially? or UK too?

Going to be Cingular exclusive for awhile. Don't know what that means for the UK though.

[kerunt]

Bah... Ill stick with my Treo.

[djweasel]

My Treo is $109 a month, $70 is nothing mine before I got the Treo was around that.

I wouldn't put it past the Iphone for everything to be $150 a month, and people will pay it because apparently the Iphone is the thing to have when it comes out.

[hopp58902 Member]

I don't get it, $39.99/month+plus tax+1 year contract=1000 Whenever minutes, Unlimited Nights+Weekends....T-Mobile anyone? I swaer that iPhone needs to be unlocked because I'm not paying $39.99 for 450 minutes LOL.

[temple_treefrog]

Is Vodafone or Three in the USA?

[WelshBluebird]

You act like $70 a month is expensive...

true, but remember, its still $500 or $600 for the phone, and then the $70 a month for two years. So if you add all the costs up, then it is expensive.

[djweasel]

It's LESS than a Treo costs a person in the long run, cus if you buy a Treo for say $500 like the retail is on that and pay what I do at $109 a month, it's still more.

I also think $70 I may buy one just to have as a second phone but I'd have to get it unlocked stupid Alltel and Verizon up here.