The iPhone 3G: What's Changing, What's New, and What's Still Missing!
Posted: 2008-07-01
(This is the first of a multi-part series on the new iPhone 3G and was posted at approximately 22:30 on June 30th, 2008. Updates were added on July 1, 2008.)
It’s not every day that a self-described “Mac addict” gets the chance to wag a finger at their favorite company, but perhaps today is that day.
As we’ve all heard by now, Apple’s newest baby, the iPhone 3G will be hitting stores and wallets with equal impact on July 11th. That in itself isn’t news anymore, especially considering every news outlet both large and small, from CNN and Fortune to this blog have already covered the unveiling in depth. No, what is news are the myriad changes AT&T and Apple have instituted in their policies dictating the release, pricing, and operation of the iPhone 3G. While it may not seem like a big deal, don’t let the trickle-feeding of information fool you; huge waves are being made and they’re going to crash on many shores tsunami-style unless everyone’s prepared to take a step back, shake the last vestiges of the Reality Distortion Field from their vision, and see what the future’s going to cost them.
Now, a disclaimer: this isn’t meant to deter anyone from buying the iPhone 3G. However, it’s important to note that enough of the details and fine print have changed to cause a big reaction in the Mac community. Although most people won’t notice these changes right off the bat or even at all, in order to avoid sticker shock, it’s better if everyone knows ahead of time. So without further ado, let us dive into the mysteries and wonderment of...iPhone policy changes!
Your wallet: “This is going to hurt, isn’t it?”
First, let’s just get it out of the way: the price. The total cost of ownership of the iPhone 3G (including the plan) is going to cost a significant amount more than the current iPhone. Unfortunately, while mobile phones themselves are becoming cheaper and more innovative, the providers that form the veritable cornerstone of their being still remain as hungry and crooked as the Hamburgler.
For starters, both Apple and AT&T are quick to tout the new price of the iPhone 3G: $199 for an 8GB model and $299 for a 16GB model. However, what many people don’t realize is that those prices are for customers who have to fulfill certain requirements for eligibility. No need to worry however, as the requirements are for the most part, pretty lax, according to MacRumors. Basically, if you have an iPhone 2G currently on a prepaid or Pick Your Plan setup, you will most likely not be eligible for the discounted price for the iPhone 3G as both Pick Your Plan and prepaid plans are not going to be available for the 3G. New customers and other customers on AT&T who are in good long-time standing with either the iPhone or another phone are also eligible for the low pricing. iPhone owners who bought their phones after May 27th are going to be able to swap them for the iPhone 3G for free. It should be mentioned that all these options come with the unfortunately standard two-year agreement business. That is, when you buy the iPhone 3G, your current agreement is wiped out and you start two years anew.
(NEW: Courtesy of Marketwatch) AT&T has just announced new pricing for the iPhone 3G!
As previously announced, the 8GB and 16GB models will cost $199 and $299 for customers who bought their iPhones after May 27th but before July 11th, are activating a new number, and are eligible for an upgrade as per AT&T’s normal upgrade policy. Here’s what’s new:
- Customers who aren’t eligible for the upgrade pricing may buy the phones at $399 and $499; the same prices as the original iPhones with a two year contract.
- Customers may also buy the new iPhone 3G for the unsubsidized prices of $599 and $699!
- This new announcement also casts doubt on AT&T and Apple’s stance on activating iPhones in stores only. It’s assumed that this rule may only apply to iPhones bought on contract.
What’s your plan? First, I plan to soil myself, then I’m going to regroup and come up with a new plan. Any thoughts?”
Now that we’ve got the initial cost of the phone out of the way, let’s talk plans. AT&T is being, for the most part, completely fair about their plan pricing for iPhone customers, which could be seen as either a good or a bad thing. For starters, those heady days of great deals for unlimited data and decent minutes are over. Now, if you want an iPhone 3G, expect to pay at least $39.99 for a basic voice plan with 450 anytime minutes, 5000 night and weekend minutes, rollover, mobile to mobile, and all the usual refinements (see here for more information). Tack onto that a mandatory (yes, mandatory) $30 unlimited data plan and you’re looking at $69.99 monthly costs, not including mobile taxes for your state (where applicable). To compare, the total cost of a current iPhone (8GB) and two years of service costs roughly $1839 not including taxes. The total cost of an iPhone 3G (8GB) with two years of service (assuming you’re eligible for an upgrade price) will be around $1879 before taxes. Although the actual phone itself is cheaper, you’re paying off the cost of a current iPhone plus $40 over two years. If that doesn’t sound like your particular cup of Earl Grey, you can take solace in the fact that your upfront costs will be significantly less with the newer iPhone. Another potential upside to all that is that getting unlimited data on an iPhone won’t cost you any more than on any other 3G phone on AT&T. If that sounds like just a rationalization to you, then you’ve never tried to browse the web on another smartphone using mobile Internet Explorer. Not to mention the potential that third-party apps bring to the table...Which will be covered in tomorrow’s entry. Check back tomorrow for the next part of this series!