New iPhone 3G Costs More Than Current iPhone

New iPhone 3G Costs More Than Current iPhone


When Steve Jobs took to the stage at WWDC and proclaimed that the iPhone 3G would cost just $199, everyone thought that they were saving $200 in the process. After all, the current Apple iPhone retails for $399 (assuming that you can still find it in stores). $200 is $200, right? Well, it turns out that this new price point is actually more expensive than the previous offering.

You see, the old iPhone had a minimum monthly service subscription of $60. With that plan, you could get in some data, some minutes, and some text messages. With the pending launch of the second-generation Apple iPhone, AT&T and Cupertino are raising the minimum bar to $70. Over the course of a two-year contract, you’re looking at an extra $240 worth of monthly charges. If you add to that the $199 price of the iPhone 3G, you’re looking at a total cost that is $40 more than the outgoing version.

Further still, it is not possible to purchase the Apple iPhone 3G without latching onto a contract, so it’s not like you can unlock and hop over to a competing carrier either. Apple (and AT&T) smells monopoly, methinks.