The new iPhone 3G is cheaper, right? The Wall Street Journal is reporting that the Apple iPhone 3G smartphone may cost $200 less, but you’ll pay $40 more by the end of the contract. The new iPhone 3G’s $199 price makes it much easier to get a new iPhone but it also makes it easier to sign up for a 2 year AT&T contract. AT&T is charging an extra $10/month for the data plan with the 3G, thus the additional $40 iPhone users pay over the 2 year period (($10×24 months) – $200 savings).
I say, what’s the big deal? In the end it’s a great deal for the iPhone user. Twice the data network speed with the 3G. Add GPS capabilities of the new phone. An improved battery. The up front cost to get the iPhone is $200 cheaper. All for paying an extra $40’s over the life of the contract. So what. Sounds like a winner to me. I don’t see what’s the big deal here. And it took Columbia Business school professor, Eric Johnson (not the EJ guitar player, btw) to figure out that math. Hmmm. Sounds like a slow weekend news cycle.
Now, I do wonder if we’d see that extra $10/month charge if more carriers than just AT&T sold the iPhone. If there’s a reason it’s costing customers more, that’s more likely the cause.
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