iPhone Version 2.0 NOT Cheaper

By http://blogs.tech-recipes.com/davak/2008/06/09/iphone-version-20-not-cheaper/

With the information that is currently available, the second version of the iPhone will not be cheaper. Yes, you pay less on day one. However, the planned rate increases will cost users more over the price of the contract.

Without a plan, iPhone Version 1.0 was about $400.
Without a plan, iPhone Version 2.0 will be about $200.
Day one savings of about $200.

Data plan for iPhone Version 1.0 was about $20 with some text messaging.
Data plan for iPhone Version 2.0 will be $30 probably without text messaging.
$10 per month over the mandated two years yields an extra $240 dollars. With SMS will probably at least cost $5 more a month.

Over a two year plan, the new iPhone version will cost users at least $40 more than the old iPhone.

For somebody buying an iPhone for the first time, it may not be a killer cost. $40 more to get GPS and 3G speeds is not bad. However, many users will not fall into 3G coverage even if they have a 3G capable device.

I am not saying that the new iPhone is not worth it. I am certainly impressed with my original version. The press, however, should not just swallow Apple's PR that the new iPhone version is ultimately cheaper.

(Oh, and it would be a mistake to think that one could buy one and unlock it without signing up for an AT&T account. Devices will not be sold without activation anymore.)