AT&T: Squeezing the life out of iPhone

[Shanesan]

There's nothing worse than when contractual obligations come out at the very LAST minute of the pre-release of the potentially hottest consumer business-oriented person-with-a-lot-of-spare-change selling product of the summer, if not the year.

So Apple and AT&T, by agreement or not, FINALLY release the most important part of the phone: Contract Requirements.

Here's the good, the bad, and the downright criminal, in no particular order.

- You MUST extend your contract if you have one to an additional two years.
- Rate plans start at $60/month for 450 weekday minutes.
- Rate plans include unlimited data services.
- Existing plans can add unlimited data for $20 (with 200 SMS)
- There is no option to revoke said data services for a less expensive plan.
- No contract = paperweight.
- Activation charge is $36, even though it's completely automated.

Quick math:
I buy the $499 iPhone, register it ($36) and have the $60/month (all before taxes). In one year...

The iPhone with service plan for myself ONLY will cost $1255 before taxes.

This isn't exactly a jump-to decision. Thats the cost of macbook, people.

 

[Le Big Mac]

Quick math:
I buy the $499 iPhone, register it ($36) and have the $60/month (all before taxes). In one year...

The iPhone with service plan for myself ONLY will cost $1255 before taxes.

This isn't exactly a jump-to decision. Thats the cost of macbook, people.

On the other hand, you're saving $480 on cell phone service (assuming a comparable plan previously). For that, you could buy a second iPhone!

 

[Rooskibar03]

Would you like some cheese with your wine.

I have said it before and I say it again, Apple sells A tier products at A tier prices.

ATT charges 39 a month for BlackBerry service, which sucks compared to the iPlans.

I you can't(or won't) pay then you can't play.

 

[rSm00th]

My VZW blackberry plan, which is almost identical to the $60 iPhone plan is something like $15-20 more expensive... and yes, I had to sign a 2-year contract with VZW too.

The phone is more expensive, sure, but is far superior than my 7250. I dont see any problem with their pricing structure. In fact, I was pleasantly surprised.

 

[fishkorp]

- You MUST extend your contract if you have one to an additional two years.

WRONG. it's not an additional 2 years. it's 2 years starting from the day you activate your iPhone. so if i still have 1 year left on my current contract and activate an iPhone, i don't have 3 years left on my contract, i have 2 starting from that day.

 

[FreeState]

Thats the cost of macbook, people.

By that logic a macbook would be more:

Macbook $999
Internet for macbook $500 (45 a month)
.mac $99

----

$1600

 

[avalys]

You're being ridiculous. I assume you're already paying for cell phone service? Then the additional cost of upgrading to an iPhone will be significantly less than $1200/year.

 

[wongulous]

Incendiary and ridiculous. Why is this thread necessary? Why can't you see you are comparing apples and oranges?

A MacBook is not going to give you cross-country access to call your mom, get texts from your friends, much less will it fit in your pocket.

 

[cmschmidt]

Quick math:
I buy the $499 iPhone, register it ($36) and have the $60/month (all before taxes). In one year...

The iPhone with service plan for myself ONLY will cost $1255 before taxes.

This isn't exactly a jump-to decision. Thats the cost of macbook, people.

i hate people saying this crap. you're not taking into account your already sunk costs on current cell phone costs. your acting like you don't already pay a certain amount for the usage of a cell phone. lets assume people pay on average $40/month currently for cell plan (that seems reasonable to me). also, some people may need/want a new phone anyway, but weren't planning on iphone.

MY quick math

Total Cost of Iphone/activation/contract for 1 year: ~$1255
Subtract current call plan costs: ~$480
the difference comes to $755...

now lets assume somebody wants/needs a new phone anyway...

anyone even thinking of buying the iPhone would probably not have gotten the free crap phone, but bought at least a $150-200 phone.

Subtract $150 from $755 = $625

so youre looking at a difference of $755 if you didn't plan on changing phones
or $625 if you were going to sometime in the next year.

that divided up over a year is barely $50-60 extra a month. If you can't afford that you shouldn't be considering an extravagant item like the iPhone in the first place...

 

[anubis]

i hate people saying this crap. you're not taking into account your already sunk costs on current cell phone costs. your acting like you don't already pay a certain amount for the usage of a cell phone. lets assume people pay on average $40/month currently for cell plan (that seems reasonable to me). also, some people may need/want a new phone anyway, but weren't planning on iphone.

MY quick math

Total Cost of Iphone/activation/contract for 1 year: ~$1255
Subtract current call plan costs: ~$480
the difference comes to $755...

now lets assume somebody wants/needs a new phone anyway...

anyone even thinking of buying the iPhone would probably not have gotten the free crap phone, but bought at least a $150-200 phone.

Subtract $150 from $755 = $625

so youre looking at a difference of $755 if you didn't plan on changing phones
or $625 if you were going to sometime in the next year.

that divided up over a year is barely $50-60 extra a month. If you can't afford that you shouldn't be considering an extravagant item like the iPhone in the first place...

THANK YOU! People (kids) here need a basic class in economics to learn the concept of "opportunity cost".

 

[cmschmidt]

No joke. I can't tell you how many times i've seen iPhone haters using the "you could buy a macbook for the price of an iPhone with contract!!!" idea...ugh. At least come up with a logical excuse if you're gonna bash something.

 

[ps49556n]

There's nothing worse than when contractual obligations come out at the very LAST minute of the pre-release of the potentially hottest consumer business-oriented person-with-a-lot-of-spare-change selling product of the summer, if not the year.

So Apple and AT&T, by agreement or not, FINALLY release the most important part of the phone: Contract Requirements.

Here's the good, the bad, and the downright criminal, in no particular order.

- You MUST extend your contract if you have one to an additional two years.
- Rate plans start at $60/month for 450 weekday minutes.
- Rate plans include unlimited data services.
- Existing plans can add unlimited data for $20 (with 200 SMS)
- There is no option to revoke said data services for a less expensive plan.
- No contract = paperweight.
- Activation charge is $36, even though it's completely automated.

Quick math:
I buy the $499 iPhone, register it ($36) and have the $60/month (all before taxes). In one year...

The iPhone with service plan for myself ONLY will cost $1255 before taxes.

This isn't exactly a jump-to decision. Thats the cost of macbook, people.

Then dont buy one. No body gives two ***** about your tired calculations.

 

[wongulous]

This all amounts to complaining about:

1. AT&T's voice rate plans
2. $20/month UNLIMITED WIRELESS DATA (ALMOST) EVERYWHERE.

As for #1, it's roughly comparable to other providers, though NOT the cheapest NOR the most expensive. Most people need to have a cell phone anyway and are somewhere around the edge of the $40-50 plans all providers offer, on average. If you don't, well, an iPhone doesn't work for you! Don't get a PHONE if you won't ever use the PHONE--it's not iTablet, it's iPhone. The point of the iPhone is not solely the wireless internet.

In response to #2, well, go find FULL wireless elsewhere for $20/month, EDGE speeds or otherwise. You won't.

 

[feelthefire]

This all amounts to complaining about:

1. AT&T's voice rate plans
2. $20/month UNLIMITED WIRELESS DATA (ALMOST) EVERYWHERE.


In response to #2, well, go find FULL wireless elsewhere for $20/month, EDGE speeds or otherwise. You won't.

Sure you will. I pay $50 a month for 1250 minutes, unlimited data, unlimited text, and early nights and weekends from Sprint. And it's 3G. That's more than twice what you're getting for $80/mo from AT&T.

 

[Dermot81]

I was also pleasantly surprised by the pricing. I was expecting at least $20 more based on rates at competitors and AT&T's own blackberry voice&data bundled rates.

 

[Project]

I love how people keep going on about how it will cost $1,500 or whatever over the two years, discounting the fact you get 2 years worth of service.

 

[hcopp]

to the poster above me, thumbs up. people calculating these costs, its so ****ing stupid. if you already have a cell phone, then it is a non issue, because you are already paying for it monthly, so shut the hell up.

 

[ravenvii]

I'd love to pay $20 for unlimited data. ****, I'd love to pay $40 for unlimited data!

...

IF they allow me to opt out of the friggin' voice plan!

All this waiting for nothing. I'm getting a Blackberry.

 

[Deanster]

Sorry, I just don't get it.

I'm a current Cingular/AT&T subscriber, and I'm using a Treo 680 with unlimited data/unlimited text, which is the ONLY plan AT&T will let me have with that device.

I use lots of data, but don't text much - about 100/month.

I'm FRICKIN THRILLED with these plans - I'll save $20/month over what I'm spending now, which is $480 (before taxes, fees!) LESS than what I'd pay to keep my current phone. I'll also be able to keep my existing voice plan, which has 2000 minutes shared among 5 phones, and works very well for me.

I bought my unlocked Treo in December, knowing that I'd be replacing it when the iPhone came out - I figure I'll be able to sell it for about 75% of what I paid for it, which is just right for something with six months out of a 2-year lifespan used.

Sorry if it doesn't work for you, but I think this is a fine plan for many users - the big problem would be for heavy texters, as the charge to go to unlimited is a bit much, even though it's identical with existing AT&T pricing.

 

[ravenvii]

Sorry, I just don't get it.

I'm a current Cingular/AT&T subscriber, and I'm using a Treo 680 with unlimited data/unlimited text, which is the ONLY plan AT&T will let me have with that device.

I use lots of data, but don't text much - about 100/month.

I'm FRICKIN THRILLED with these plans - I'll save $20/month over what I'm spending now, which is $480 (before taxes, fees!) LESS than what I'd pay to keep my current phone. I'll also be able to keep my existing voice plan, which has 2000 minutes shared among 5 phones, and works very well for me.

I bought my unlocked Treo in December, knowing that I'd be replacing it when the iPhone came out - I figure I'll be able to sell it for about 75% of what I paid for it, which is just right for something with six months out of a 2-year lifespan used.

Sorry if it doesn't work for you, but I think this is a fine plan for many users - the big problem would be for heavy texters, as the charge to go to unlimited is a bit much, even though it's identical with existing AT&T pricing.

I'm not sure if you're replying to me or not, but...

"I'll also be able to keep my existing voice plan, which has 2000 minutes shared among 5 phones, and works very well for me."

That's the thing, I DON'T want a voice plan.

 

[redmeister]

i like how people make lots of references to you pay xxxx.xx over a year for service!!!! in this case, your calculation was like $1200 bucks

say youre using a $65 (taxes included) per month cellphone plan with a FREE phone, you're still paying $780 a year for the phone service... so youre really only paying for the iphone itself which is expensive... and a few bucks extra a month for unlimited data. not THAT big of a stretch IMO. maybe im biased bc these plans for me will cost me 5 bucks extra a month for a TON of different capabilities.

you're already paying a good amount each year for wireless service... just depends on what each person's current service plan looks like to determine if its worth it or not

 

[Briellz]

Then dont buy one. No body gives two ***** about your tired calculations.

Ouch!

 

[marksman]

Sorry you will not get many people to agree that the AT&T pricing plan is expensive.

In fact pretty much everyone I know who already has a smartphone would SAVE a decent amount of money in monthly charges switching to an iPhone.

The $60 a month charge you cite also includes ALL phone service.

Sorry, but I only have to pay $20 a month for unlimited data access to use the iPhone to its fullest. That is cheap for me.

Someone without a phone being able to get phone service and unlimited data for only $60 a month on a device as good as the iPhone, that is criminally cheap.

 

[Deanster]

That's the thing, I DON'T want a voice plan.

I understand your desire, but it's an iPhone. It's not an iPod, and it's not an internet tablet. I think any expectation that it would be available with a data-only plan like a wireless modem was unrealistic.

Perhaps I'm wrong, but I'm unaware of any phone, anywhere that can be bought and used for data only without a voice plan involved. There are wireless modems that have plans like this, but no phones that I know of.

but maybe I'm wrong...

 

[ravenvii]

I understand your desire, but it's an iPhone. It's not an iPod, and it's not an internet tablet. I think any expectation that it would be available with a data-only plan like a wireless modem was unrealistic.

Perhaps I'm wrong, but I'm unaware of any phone, anywhere that can be bought and used for data only without a voice plan involved. There are wireless modems that have plans like this, but no phones that I know of.

but maybe I'm wrong...

There are certainly phones being sold without forcing voice plans down your throats.

Blackberries are one example.

And why couldn't I use the iPhone sans voice? Email, web browsing, YouTube, movies, SMS, Google Maps, pictures, syncing with your Mac seamlessly... etc. I don't plan to use it as a modem. I plan to use it as a communications device. I just can't use voice (being deaf and all).

Frankly, I could go as far as calling this discrimination...