Apple iPhone: The least expensive smartphone

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“As with nearly any purchase, there are three prices to consider in buying a mobile phone,” Daniel Eran writes for RoughlyDrafted.

• Upfront cost on the day of purchase.
• Total cost of ownership over its lifetime.
• Resale value after it is replaced.

For example, ;A $600 PC laptop that costs half as much as a new Mac Book–but which is worthless after two years of grief–isn’t really a good deal considering that the Mac Book would easily command more second hand after two years than the “savings” offered by a generic laptop,” Eran writes.

Apple’s iPhone “is cheaper overall than other phones when considering total cost of ownership over its lifetime, even much cheaper phones with a subsidized upfront cost. Obviously, more expensive phones that compare to the iPhone in features are even more expensive when a service plan is included,” Eran writes.

“The next time you hear a pundit referring to the iPhone’s ‘$2000’ price or its ‘50% profit margin,’ you can rest assured that ignoring the rest of their comments is probably the best way to avoid being mislead by the noise of their desperate astroturfing,” Eran writes.

Full article here.

[Thanks to MacDailyNews Reader “Too Hot!” for the heads up.]

35 Comments

  1. For one of my friends I work in the office it was a $3000 dollar iPhone he purchased the other day. Here is his story.

    He has a Dell Laptop Computer and needed to upgrade to SP2 which he did. He connected his new iPhone and nothing worked. He was told he needed Vista. He bought Vista Home Edition and installed it. Again he tried to activate his iPhone. He was told he needed Vista Ultimate. He bought Vista Ultimate and tried to activate his iPhone again. It would not work. He was told this would have to go back to XP with SP2. Being so frustrated with this, he ended up buying a Macbook. Now he is able to use his iPhone now. I think there is a lesson here and yes this is a true story.

  2. @ Gil

    BTW, you’re friend sounds like kind of an idiot.
    “What, need to buy Vista? Okay!. Wait, need to buy another copy of Vista? Sure thing! Boy, this iPhone is hard to work! What? I need to go back to XP? Righty-oh! Dang! Still no dice!”

  3. The pundits and analysts are such an utterly corrupt gang of propaganda spewing jackasses, that you can not take anything they say at face value. Having said that, I am truly thankful for the effect these bozos have had in making me financially independent. They have so slimed Apple over the years – depressing its price per share — that I have been able to buy AAPL at bargain basement prices, as I watch in awe while AAPL doubles and redoubles so quickly.

    But now that I am retired and fully invested in AAPL, with no more major sources of AAPL investment money, I am ready to see these idiots unmasked. That may well happen as AAPL passes HPQ and then IBM in market cap. One would think those events will be major stories in the mainstream media. At some point the pundits — for their own professional survival — will learn to kiss Apple’s corporate ass as they now pucker up for Ballmer’s buns and as, decades ago, they did groveling before IBM’s corporate vertical smile. Whores will be whores.

  4. Yeah, right.

    I do not know, how you calculate, but at least in AT&T with the same service plan 4GB iPhone is more than $200 more expencive, than Nokia N95 ($749 + $20/month cheaper plan). Naturally 8GB iPhone will be more $300 more expencive, than Nokia N95.

    I just checked that against 450/National and 900/National plans for iPhone and for non-subsidied phones plans (such as Nokia N95).

  5. @Chrissy

    He told me that it was iTunes that told him. I don’t know if that was true but that is the story he told me. He is a die hard Windows fan and never thought he would ever buy a Mac. But he really likes the iPhone and needed to have it and spend whatever it took to have the most recent gadget.

    Sorry I was late in responding. Work is getting in the way. Back to work (on a PC Ugh)…..

  6. Thank the gods, FINALLY someone’s at leasts trying to interpret the numbers properly intead of just comparing the superficial pruchase price. Numbers don’t always tell the truth.

    As the old saying goes: “There are lies, damn lies and statistics.”

  7. @Chrissy,

    Yeah I know. Well whatever. He really is not that smart.

    He showed me a picture of his new Macbook with his iPhone next to it. That is proof enough for me…

    BTW Daniel Eran Rocks!!!!!!

  8. @LinuxGuy and Mac Prodigal Son
    Do you think there will be a down turn (buying opportunity) in after hours trading on Wednesday after Apple financials come out?
    My wife has been saying no for years to Apple stock. We could be in your shoes Apple wise. She did buy into an Apple ELK and we made 12.5% over two years. That’s now matured and we’ve got a bunch of money to reinvest. What do you think?

  9. MikeR,

    The short term, especially now, is so volatile that I can’t tell you which way things will break. Most of the talented day traders — and they are very talented — on the Apple Finance Board site warn that short term games this week are a crap shoot. I can only say that for the long term — the domain of investors as opposed to traders — the prospects for AAPL are fabulous. I have gotten over the angst of not buying in at the best times and reveling in the huge long term gains that I have made. This are based on the fundamentals of Apple and its competition, not the shenanigans of the whoring pundits and hedge fund shills spewing their agenda ridden FUD.

    In fact, I now have to awake my son who just got out of the Army and saved a bunch of money – tough to spend in Iraq – to buy another batch of AAPL today. He is in the same bind as you are — not knowing when to buy in. I warned him Friday that he would likely watch the stock price climb, while he tried to time the market, waiting for the dip that never came. I lost a lot of opportunity myself in waiting and having Apple run up – day after day. But I did finally act and even though I bought close to a short term high a few weeks ago, people would kill to be able to buy at that price now.

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