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From the Clip iPhone 3G's True Price Compared posted by Scrivs:

Ever since Apple announced that they're cutting $200 from the iPhone's price and lowering the iPhone 3G down to $199, people have been rumbling about how the increased AT&T data plan price negates any savings you get up front on the phone. Screams of "IT'S NOT ACTUALLY CHEAPER, APPLE IS FOOLING US" has us wondering about how much more you're really paying over 2 years compared to the old iPhone or similarly-featured 3G smartphones on AT&T and other providers. Here's what we found.

 

Sigh. This is what is going to make me hold back on getting one of these. You see, I don't use a phone for its voice capabilities. Everyone texts down here or maybe they just text me. 200 SMS messages for an extra $5/day? Please I can blow through that in a day or two. I need to see the price of unlimited messaging then we can talk.

I really do want to love the iPhone. In fact I do love the iPhone. I don't love AT&T though. If you can give me 3G for $30 and allow me to suck down all the bandwidth I want why can't I get some text messaging love? Oh you want more money, that's why.

Blood suckers.

Wow, no text messages at all? That's totally ridiculous. I don't even send that many text messages (about a dozen or so per month) and now I have to pay an extra $5 just for that small quantity. Paul I have no idea how much your messaging habits would cost you but it sounds prohibitively expensive and outrageous.

It's certainly cheaper here in the UK... But that's not hard. It was £270 + tarrif (£35 upwards) * 24 = Total Cost of Ownership: £1110 (~$2220) = Fuck!

It's now:
£free + (£45 * 24) for the 8gig or
£free + (£75 * 24) for the 16 gig.

You need to look at the tariffs quite closely to see exactly what you're getting but you can still get it on cheaper tariffs (though, of course, you get a many fewer bundles minutes/texts) and it works out even cheaper:
£100 + (£30 * 24) = £410 cheaper than the £45/pm

But the TCO is still massive compared to other similar devices. I realise this incantation is a damned sight more "complete" than the first gen iPhone but I'm still not sure if it's justifiable at £820 (~$1640) over two years... But it's getting much closer.

My n95's TCO was £540 over 18 months (£30pm + free handset).

Tangent: If I'm looking at the right figures, I think the iPhone is cheaper here than the US. $1640 vs $1975 and the UK one comes with more minutes, data and texts. Surely that's a first.

Free up your couch Oli, I'm coming over.

Hah! You think you have it bad? In Canada, Rogers' data plans start at $65/month. FOR 1 GIG OF TRANSFER. Bell charges $75/mo for unlimited data but of course... iPhones are locked to Rogers and the only way you'll get one for $199 is signing up for a 3-yr plan.

asdfghjkl :(

^^^^

Ouch.

Evdawg, that's just for data? Jeez that sucks.

3 years? I'm surprised they sold any!

Yep it is actually cheaper in the UK. I talked to O2 about my upgrade and I'm getting a free 3g iPhone and paying no more than the £45 / month I pay now. Per month: 1200 minutes, 500 text, unlimited data, roaming rates reduction, 18 month contract. The only downside (not sure it's a really down one) is I have to sign up again for another 18 months. I'm also getting my husband upgraded to a £30 month contract for my old iPhone without a cost. If I wanted unlimited texts it would be £7.50 extra a month that's it. For once it's good to be British :)

On pricing, I just found out that the US prices I've been citing are excluding taxes. The UK ones are inclusive. How much would the final price be where you are guys?

And it's shitty, fake, "assisted" GPS. Uses cell-triangulation instead of satelites so it's no use for navigation without an external, proper GPS receiver.

And there's still no MMS >_<

And they've crippled it so you can't use it as a modem.

Oli, iPhone 3G is real GPS, the original had the cell-triangulation.

Assisted GPS only uses cell networks to enhance the location. They are still real GPS from satellite, it's just that they ALSO have the cell location to assist in areas of bad satellite reception.

I see. Yeah I just read something wrong along the way.

I thought it used A-GPS still, but didn't need to, if that makes any sense.

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