iPhone 3G: The "Total Cost of Ownership" Argument

I can understand why some people would be interested in the enterprise stuff, but mine is definitely a consumer device, and for that purpose, it's been well worth buying it upfront at the initial price-point (even without the rebate) and it's probably one of my favorite purchases, ever. There are some issues (many of which will either be addressed by software 2.0, GPS or 3G speed) but I've never been "unhappy" with my 1G iPhone.

I doubt the end of the exclusive arrangement will be anytime soon, and frankly, it doesn't bother me. I suspect we'd not have an iPhone if Apple would have had to acquiesce to the demands of other providers. (It's no secret that many providers balked at some of what Apple wanted, AT&T is the only company that bit.) The exclusive doesn't seem to be hurting Apple too terribly much, and I think if people want it, they'll figure out how to get it. (Like I did.)

EDIT: Reading over the CNET article, maybe it is possible, and I certainly don't think it would be awful if it were available elsewhere, but I'm betting it's not as easy as he makes it out to be to bring other carriers in.

If they don't want it, I don't think Apple has an obligation to give it to them the way they DO want it, at the expense of their vision of what a phone should be, right?

This is the first time I've seen anyone point out in such black and white terms that over time the consumer is spending a lot more money with this new plan.

Well, the same information is everywhere. Gizmodo posted the comparison which is where I got the $160 figure. Here.

Apple's phone is actually cheaper than most of the competition.

And, again, I don't think it IS a lot more, anyway. Especially for a phone that IS an actual upgrade. Is 160 more over two years too much to ask for the one feature everyone wanted (3G) and a feature that we weren't sure we'd get (GPS)? I don't think it is. And, ultimately, I think the way it's spread out makes that $160 a moot point.

Well, I presume the contract has a lot to do with it. With an iPod Touch, you pay a one time fee and then you never owe another penny, unless you purchase some of the coming software.

You think so? I'd say the financial trouble of Americans is probably rooted in a lot of things, and would have a hard time attributing it to just that one thing. I mean, I buy on credit fairly often, because I don't have the upfront cash to get some of the things I'd like to have.

I think my point stands even for people who aren't in financial trouble: We simply like to feel we're paying less NOW, even if we're paying MORE later. In essense, I'm okay with paying a premium for convenience, and the whole "total cost of ownership" argument is a bit like telling me that the hot dog I'm eating is disgusting.

I KNOW it's disgusting, I've seen how they're made. I still think they taste awesome on a bun with ketchup and mustard, though.

Well, I think there are a lot of poor decisions made, particularly by young people getting their first credit card. I know I made a lot of mistakes and dumb purchases in college (I got a target card one time just so I could get some groceries) but I also think a lot of people are capable of managing their credit responsibly. Now, if you believe that there's no such thing as "good debt" I guess the debate is pretty much over.

I still say it's a bit of a moot point, as what I say in my article is true either way.

Really? How so? Link to the stream?

Well, I found a link -- it's long. I'll take a listen later tonight, unless you happen to know about when in the stream I can focus on?

Yeah, I think they've actually confirmed most of these plans. Thanks. I'll take a listen tonight.

I had always heard that 3G could sometimes be kinda comparable to EDGE, but I have to wonder:

1) Does it depend on where you are and

2) How much does software have to do with it?

For me, the 3G isn't quite as compelling a reason as the GPS, but faster load times WOULD be nice when I'm away from a Wi-Fi hotspot, which is more often than I'd like, just not often enough that the 3G is a definitive reason to switch.

Yeah, the 6.66 is what I came to, as well, using engadget's comparison chart. I didn't consider the fact that I spent $200 more on mine than a lot of people, though I did get the $100 rebate.

Also, no one seems able to confirm that SMS messages WILL be $5 extra. That same podcast you referenced (they did mention my article, but sort of as an aside - still cool, though) said that they talked to an AT&T rep and he said there wasn't information one way or the other about SMS, yet.

Frankly, despite Apple's minimal efforts to convince people otherwise, I don't think they see themselves as an Enterprise phone, nor do I think they're trying all that hard to position themselves in that market.

The vast majority of the announcements you see relating to the iPhone are consumer oriented, not business oriented. I think they're plenty happy to have hundreds (or thousands) of individuals buying phones and taking them into work to say "hey, I bought this, can you set me up on exchange..." (out of the over a million who are purchasing it for personal use) rather than thousands of bulk purchases in which entire corporations build their mobile strategy around Apple's iPhone.

Now, a few major companies may do that, and it will allow Apple to say "see how great it works" but I don't see Steve Jobs sweating it, because they're making a @!$%# ton off the iPhone one way or the other, and even *without* that - the perception is that the iPhone is *the* smartphone to have, based on the number of competitors out that are labeled the "iPhone Killer" (#2 in the market) rather than the "Blackberry Killer" (#1 in the market).