What the iPhone actually costs: $1,936

, posted: 16-Jan-2007 16:12

Apple iPhoneAllen Stern at CenterNetworks has done some calculations on how much the Apple iPhone will cost. He figures (in US dollars) that customers are looking at $640 for the phone alone, including eight per cent sales tax, and $108 a month in plan and sundry fees.

Over a year, that's a grand total of $1,936. For that, you get 900 minutes of talk time a month, and 3,000 SMS text messages according to Stern. His comparison of what that money buys you is illuminating:
  • 387 Starbucks grande drinks
  • 2,129 McDonalds hamburgers
  • 968 rides on the NYC Subway
  • A round-trip ticket to Japan from the USA
  • A new LCD 42" tv with enough money left over to buy all 5 seasons of 24 on DVD
  • A Mac Powerbook
  • 20% of a monthly ad on TechCrunch
It's worth noting that your total iPhone investment will be higher than that - you need to go on a two-year contract with Cingular, so assuming the prices stay the same, you need to add another $1,200-$1,300. In fact, the cost could be even higher, because a commenter on CenterNetworks says Cingular has a single, $49.95 data plan for the iPhone, and none of the cheaper alternatives are available for it.

On top of that, there will be the cost of media purchases. What happens if you lose your iPhone? How much is the replacement cost?

Ouch.


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