Chandler Kent

A Blog About All Things Tech

What Would Make the iPhone Worth $499?

Posted by Chandler Kent on Fri. January 19th, 2007 @ 2:24:18 pm

As a college student paying my way to an engineering degree, I have very limited financial resources. But when the iPhone was announced a few weeks back, I was ready to do everything I had to do to get my hands on one of those things. I would have dropped out of school or even sold my soul on e-bay just to get an iPhone. Had the iPhone been available for purchase the day of Macworld, I may have done some of those things to get one. But, as we all sadly learned, it was not. So a few weeks have passed, and my head has cleared of Jobs's RDF long enough to allow some of my own thoughts to creep into my brain. I have realized that I can't drop out of school, or even sell my soul just for a phone. That's crazy, right? So I started thinking of better ways that I could get my hands on the iPhone. I could work, but that would take, well, work. I could sell some stuff, but I have nothing really to sell. So I came to the conclusion I would have to fork out the $499 for the phone straight out of my pocket. That made me really start thinking is it worth $499 to me? I still say yes, but there are a few things that I think we need to see about the iPhone before we make that decision. One of these things will make or the break the iPhone for me. So today I am going to play an old game I just invented called: "I would drop $499 for an iPhone if..." Let's get it started.

I would drop $499 for an iPhone if...
the plan from Cingular is right. Currently I am on a family plan with Cingular that has 1400 minutes a month, 100 free text messages a month, and no other data add-ons (i.e. no internet access, no e-mai, etc.). But if I were to get an iPhone my plan would definitely have to change. Most obviously, I would need a plan that allows me to connect to the internet, and be able send more than 100 texts a month (considering how easy it will be). Also, I will want to be able to get my e-mail, so the plan will have to allow me to do all that. Looking at Cingular's current plans, that could be very expensive for the average user. Let's break it down.

I'm going to try and keep this as cheap as I can. First, I will need some talk minutes (or else, what is the point of the phone?). I don't have many friends, so let's say I can get away with 450 minutes a month. That will set me back $39.99. Okay, I can handle that. So now let's add a messaging package. Let's say I can live with 200 a month. That is another $4.99. Okay, so now let's add the data plan. Looking around, it seems I can get an unlimited data plan for $19.99 a month. So that totals to around $65 a month to use my iPhone. That is with my basic, most likely underestimated, needs. This guy claims it would cost him about $102 per month, $50 more than what he pays now. To me, this is an un-Apple-like solution. For a long time they have stayed far away from subscription models. They seem to prefer the pay once model, as is demonstrated by the iTunes Store. But of course, the iTunes Store is nothing like the phone market. But seriously, why do you think they don't make you pay a subscription to get music on the iPod? What average person wants to pay $299 for a device and then another $15 per month just so they can listen to it? Honestly, I wouldn't be able to afford my iPod if that were the case. So what does this have to do with the iPhone? Everything. Of course, Apple cannot get away with not charging per month for phone service (if they could, how much would that revolutionize the industry?). I'm not talking that, but what if it were all built into the cost of the phone? I would drop $499 if the service, the entire 2-years of calls, internet, e-mail, and texts, were built in to the required 2-year contract with Cingular. Imagine that. You walk into an Apple store, you pick up your iPhone and reluctantly drop the $499, you walk out with your iPhone and can immediately make calls, text message, receive e-mails, and browse the internet for "free" since the entire 2-year subscription was built into the cost of the phone. That would truly be revolutionary, and much more Apple-like. Apple (by Apple, I of course mean Steve Jobs) has always hated the subscription model:

"The subscription model of buying music is bankrupt. I think you could make available the Second Coming in a subscription model and it might not be successful."

So who knows, it could happen. Maybe that is why they ended up going with Cingular. Maybe nobody else would agree to such a deal, but Cingular is so desperate for customers that they would do whatever they could to sell more phones. Maybe Apple didn't bow to Cingular's wishes as everybody is claiming, and instead, Cingular bowed to these wishes of Apple. So before you go calling me crazy, think about. It actually makes some sense and it would definitely make me drop $499 for an iPhone.

What would make you drop $499 for an iPhone? E-mail me at chandler [at] chandlerkent [dot] com.

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Chandler is a 19 year old college student at Rose-Hulman Institute of Technology. He is currently in his freshman year and double majoring in Computer Science and Software Engineering with a minor in… more »

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Thank you for visiting ChandlerKent.com. We are a technology blog that covers all things that have to do (or not) with technology. Nothing that is said here is guaranteed to be factual or even in the remotest bit true. Thanks again for visiting and have fun browsing!

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This site was opened on November 30, 2006 and is run by Chandler Kent and a few of his friends. All material, opinions, images on this site belong to us. Please contact us if you have any questions about using any material presented here.

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