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InfoWorld Daily | Tom Sullivan » Calculating the cost of an iPhone

June 29, 2007 | Comments: (0)

Calculating the cost of an iPhone

Wireless: Now that they will be officially available this evening, albeit likely hard to find, Apple's iPhone brings the reality of a two-year contract replete with beefy monthly payments. Tom Yager does the math in this Ahead of the Curve post. "What's the absolute minimum cost of iPhone? Add it all up and it comes out to $2,034.75." That number does not include taxes, fees and surcharges which -- as anyone with a telephone can tell you -- account for a healthy portion of one's monthly bill. "That's the cost of a $499 iPhone, a two-year AT&T contract at $59.99 per month and a $36 activation fee." Related: AT&T details iPhone service plans.

Notes from the field: The RIAA is squirming ever deeper into the muck, so writes Robert X. Cringely, referring to the group's nasty suit against a disabled Oregon woman, in which it threatened to bring her 10-year old daughter in for a deposition and even called her school pretending to be a family member. Why grandma, what big attorneys you have. "Incidentally, there is no truth to the rumor Dick Cheney plans to assume control of the RIAA after his current job runs out. But it wouldn't surprise me a bit," Cringe writes.

Green IT: Carbon neutral. Carbon free. These ostensibly noble notions are gaining purchase among tech vendors, true, but Ted Samson asks "is that really the best strategy a company can adopt to reduce its environmental impact?" Since he's raising the issue, you can guess the answer is not some quick and easy "yes". Samson writes, "companies would be better served focusing on boosting efficiency and energy conservation." Virtualization is one approach. Others include power-capping tools, telecommuting programs, solar panels, and PC-power management software. The healthy carbon diet. "If you have an ideal [carbon] weight in mind, the healthiest route is to invest time and money in a sensible diet and exercise regimen."

Posted by Tom Sullivan on June 29, 2007 04:35 AM


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What a ridiculous story "Calculating the cost of an iPhone" is. You have to calculate the cost based on comparing it to another cell phone.

Otherwise, it's like saying that the cost of a house is [whatever your mortgage payment is], but leaving out the fact that you're not paying rent for an apartment.

Posted by: Steve at June 29, 2007 10:25 AM

I agree with Steve, except I would go a little farther, breaking the cost down to so many cents a minute for voice, email, video, and music. Then compare the iPhone's costs in the above categories to its nearest rival, meaning another phone or device that offers all the versatility that the iPhone does (if such an animal exists). Although I don't consider myself a geek, I think that's the way a geek would approach the problem of "What does an iPhone cost?"

Posted by: Sam at June 29, 2007 04:58 PM

Have to agree with Steve on his comment. What a stupid way to calculate the cost of the phone. If you just want the phone, pay the $499 then take the hit of the early cancellation fee. Comes out to less than $750.

Apples to apples guys, no pun intended.

Posted by: Tim at June 30, 2007 02:39 AM

I am forwarding Steve's unique cost differential theory to my contacts at Ford and GM with the suggestion they price new vehicles as the difference from each purchaser's existing cost of transport.

Although there was no need for Steve's insulting denigration of "Calculating the Cost of an Iphone" I nevertheless wish to congratulate him for having the intelligence (nee cowardice) not to list his surname.

Posted by: Gerald Black at June 30, 2007 06:29 AM

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