What's the True Cost for new iPhone Users?

[MULTIZ321]

I'm curious - If I buy a Verizon iPhone (not a previous iPhone user) - what's a ballpark figure on what the true cost will be.

In other words, how much should one budget to purchase apps to make it functional. I realize this will vary for different owners but I'm sure there are some "must have" apps that would come highly recommended. Also, I'm not sure what percentage of Apple apps are free. I would assume there's a fee associated with most of them.

Thanks for any advice on this.

Richard

 

[Glynda]

Cost

Just bought one. The 32GB was $299.00. Data plan is $30.00 per month.
Mobile Hotspot runs between $20 and $35 a month if you want it. Mobile me is $99 a year if you want it. Most of the apps I wanted were free with the exception of a flight app and a couple of 99 cents games. Oh, and I bought a case and a car charger.

 

["Roger"]

.... Also, I'm not sure what percentage of Apple apps are free. I would assume there's a fee associated with most of them.

Thanks for any advice on this.

Richard

As you noted, mileage will vary with owner. You did peek my curiousity so I added up the present cost of all the apps currently on my ITouch. (I have had it about three years.) The total was $60.00. Most of the cost was in reference and utilities.

To help you judge your own costs (and how you can cut into my $60), in a reveal all mode, here are the apps currently on my ITouch.

Games: Angry Birds and IChess Pro. $1 each or $2 total.

Reference: National Geographic Field Guide $10 and Chirp! (bird songs which are also on the former field guide) $3. (Yup, I'm a birder.) National Geographic Atlas. $2.

Ebooks: Currently there are three ereaders on my ITouch (with two others removed). Zero cost. (But then there are the books.) Plus a B&N and an Amazon app which allow you to browse their stores, etc. Zero cost.

News and Weather: NY Times and Local newspaper plus a free version of the Weather Channel. No cost. (You can also use the Safari browser to access newspapers, but many newspapers have specialized apps - some of which are better than using the browser.)

Utilities: Convert (converts all sorts of measurements plus currency) $5. Docs to Go (allows you to carry and make changes to spreadsheets and Word documents plus opens the same two kinds of documents plus .pdf documents attached to emails) $10. TravelTracker. (Trip organizer) $3. Gas Cubby (tracks gas costs, mileage, and auto maintenence) $5. Secret! (Password keeper plus anything else you don't want to be seen if you misplace your IPhone - syncs with computer version) $7. Informant (calendar and task recorder) $13. (Note: The IPhone will come with a calendar which for most people works fine. I have meetings on - like the first and second Mondays of the month. The free calendar cannot handle that. It will only let you do monthly meetings on a given date.)

In general, most apps are free or have a trial version. Never buy without tryijng. Also, with a rare exception, all apps allow you to do updates for free when they come up with newer versions.

Hope this gives you at least a start as to what you might expect.

 

[Transit]

Most of the apps I downloaded were free. If you have other istuff, many apps that you purchase will cross over to different devices .There were really no paid apps that were a necessity to purchase, just frivolous stuff .I have about 5 apps that I paid for. They range from 99. to 2.99.

The app store also has sales periodically.The app store is really not much different that the Android market. The app store is a little more organized and has more choices. I never purchased any android apps because all the apps I needed were free.

The one costly app I'm considering is a good navigation app. I miss Google navigation being free on Android .The apps that are as good as Google navigation are costly ($29-$99).

 

[Transit]

I just wanted to add that with the purchase of my Iphone came some accessory purchases that i'm very happy with.

Sena wallet case - High quality leather. I don't carry a wallet anymore just this case with my Iphone, drivers lic., bank card and cash.With these items it's still thinner than my wallet was.I still have a full blown wallet but rarely carry it. $43.00 from Amazon all in.

Jambox -Bluetooth speaker thats not much bigger than the Iphone itself. The sound is very good and the volume and bass that comes from it is impressive .The volume is not loud enough for a beach party nor does it compare to a Bose Sound Dock but for a average room or sitting by the pool ,it's good. $200 bucks (ouch!)

To defer some of the costs of the Iphone and accessories I sold my Droid online using Gazelle.They offered $96.00

 

[Clemson Fan]

In other words, how much should one budget to purchase apps to make it functional.

The vast vast majority of apps are dirt cheap or free. The real high cost of the iphone (or any smartphone for that matter) is the monthly data plan.

The most expensive app I have is a TomTom GPS app which was $50. Most of the others were free or 99 cents.

 

[equitax]

That Depends....

The App Store and ITunes can be a new found source of expenses - Friends of friends in Canada got his and hers Iphone 4 32 GBs on a 36 month contract which is not abnormal for Canada:

Cost of Phones : 299 each + taxes

Monthly Bill (500MB + voice) $140.00

First combined bill for Itunes and App Store some 42 days later : $1700.00 (yes, 99 cents at a time) - They do however have a really nice music collection now...

The phone could be the cheapest part of the equation...

I'm curious - If I buy a Verizon iPhone (not a previous iPhone user) - what's a ballpark figure on what the true cost will be.

In other words, how much should one budget to purchase apps to make it functional. I realize this will vary for different owners but I'm sure there are some "must have" apps that would come highly recommended. Also, I'm not sure what percentage of Apple apps are free. I would assume there's a fee associated with most of them.

Thanks for any advice on this.

Richard

 

[Clemson Fan]

First combined bill for Itunes and App Store some 42 days later : $1700.00 (yes, 99 cents at a time) - They do however have a really nice music collection now...

Sounds like they're buying a ton of music content which really has nothing to do with the phone. They could've very easily spent that much on music on iTunes on their computer instead of the phone.

If you already have a nice iTunes music and/or video library, you get to easily put that on your iPhone for free. Awhile ago I transferred all my CD's to digital MP3's using iTunes which I download for free onto all my apple devices.

 

[equitax]

True indeed

The phone just facilitates...

Sounds like they're buying a ton of music content which really has nothing to do with the phone. They could've very easily spent that much on music on iTunes on their computer instead of the phone.

If you already have a nice iTunes music and/or video library, you get to easily put that on your iPhone for free. Awhile ago I transferred all my CD's to digital MP3's using iTunes which I download for free onto all my apple devices.

 

[dougp26364]

I'm curious - If I buy a Verizon iPhone (not a previous iPhone user) - what's a ballpark figure on what the true cost will be.

In other words, how much should one budget to purchase apps to make it functional. I realize this will vary for different owners but I'm sure there are some "must have" apps that would come highly recommended. Also, I'm not sure what percentage of Apple apps are free. I would assume there's a fee associated with most of them.

Thanks for any advice on this.

Richard

We just upgraded out two phones to iPhones with Verizon. Two iPhones, two holders, on car charger and a $50 upgrade credit brought the total bill to just over $460. I'm finding the phone fully functional without a lot of apps the cost money. At this point all the apps I need have been free.

 

[MULTIZ321]

Thanks for all the replies. It appears that the useful apps won't cost as much as I thought with the exception of GPS apps.

Frank, I found this link - iPhone GPS Navigation head-to-head Review - by Tim Stevens/Engaget.com. It's an April 9th,2010 Review, so if anyone has any more current info, let us know.

Thanks again.

Richard

 

[Ken555]

There are lots and lots of great apps to buy, in addition to the free apps. I find myself buying about $10-20/month in new apps, most of which aren't worthwhile (though there are some gems). Like others, I bought the TomTom app for $40 (it's now/was $35 for USA) and $20/year for live traffic updates (helpful in metro areas, and even not so metro...saved me 40 minutes on the drive to Phoenix in the desert a few months ago during construction on I-10). Keep in mind my $10-20/mth cost is for both iPhone/iPad, and some of that only works on the iPad but most work on both (pay once). FWIW, my most expensive app so far on the iPad is the Wall Street Journal (~$17/mth), but worth it!

 

[Kagehitokiri2]

i dont understand why companies dont offer pay-per-use data, even at high rates.

i guess its just that they are able to lock people into contracts, so they do..

 

[dougp26364]

i dont understand why companies dont offer pay-per-use data, even at high rates.

i guess its just that they are able to lock people into contracts, so they do..

They lock you into contracts to make up the difference in the discount the give you on the phone. Without a contract, the iPhone retails for $649.99. With the two year contract and mandatory data package, they sell the iPhone for $199.99. They take a loss on the phone but make it back up over the length of the contract.

At the retail price, I'd never buy the iPhone and have to pay-as-we-go for data. I prefer a monthly flat rate as to one huge upfront fee and then guess at what my usage and fee's would be on a monthly basis. By going on a 2 year contract with monthly payments, I can budget the expense consierably easiet than pay-as-you-go.

 

[MULTIZ321]

There are lots and lots of great apps to buy, in addition to the free apps. I find myself buying about $10-20/month in new apps, most of which aren't worthwhile (though there are some gems). Like others, I bought the TomTom app for $40 (it's now/was $35 for USA) and $20/year for live traffic updates (helpful in metro areas, and even not so metro...saved me 40 minutes on the drive to Phoenix in the desert a few months ago during construction on I-10). Keep in mind my $10-20/mth cost is for both iPhone/iPad, and some of that only works on the iPad but most work on both (pay once). FWIW, my most expensive app so far on the iPad is the Wall Street Journal (~$17/mth), but worth it!

Ken,

Does that mean you don't have a GPS app for your iPhone/iPad? If you do have a GPS app - which one and how do you like it?

Best regards,

Richard

 

[Elan]

They lock you into contracts to make up the difference in the discount the give you on the phone. Without a contract, the iPhone retails for $649.99. With the two year contract and mandatory data package, they sell the iPhone for $199.99. They take a loss on the phone but make it back up over the length of the contract.

At the retail price, I'd never buy the iPhone and have to pay-as-we-go for data. I prefer a monthly flat rate as to one huge upfront fee and then guess at what my usage and fee's would be on a monthly basis. By going on a 2 year contract with monthly payments, I can budget the expense consierably easiet than pay-as-you-go.

Keep in mind that the $650 "retail" price you've quoted is highly inflated in order to make folks look at the contract pricing the way that you've presented it. Many unlocked GSM smartphones can be purchased for $300 or so. In collecting $60/mo (typical cost of voice and data) for 24 mos ($1440), the carriers could refund you $199 on the phone and still be money ahead.

Personally, I'd rather buy the hardware outright and pay as I go for voice and data. Furthermore, there's no reason to have to "guess" at usage. The technology exists to meter voice and data usage. The carriers just don't want to provide easy access to that info because it would allow consumers to use their voice/data more judiciously.

 

[paxsarah]

Keep in mind that the $650 "retail" price you've quoted is highly inflated in order to make folks look at the contract pricing the way that you've presented it. Many unlocked GSM smartphones can be purchased for $300 or so. In collecting $60/mo (typical cost of voice and data) for 24 mos ($1440), the carriers could refund you $199 on the phone and still be money ahead.

I just pulled the trigger on a new Verizon iPhone. I had been in the market for a iPod Touch (to replace an iPod Classic that was stolen last fall), and already had Verizon, so after much hemming and hawing I went for it. The 32GB iPhone I bought is the same price as a 32GB iPod Touch ($299), so clearly there is a good amount of subsidy in the pricing. Maybe $650 is an overstatement, but it's not completely out there.

As for the monthly fees, I already had a family voice plan, and nothing about that is changing with the new iPhone, so I don't count that as a cost of the device - it's a cost of having a mobile phone, and one I'd priced out separately and am OK with (and have been for years). I was already paying $10/month (required) for data on my not-quite-smart EnV3 - I didn't love that charge, but had also accepted that as the cost of being able to surf the web on occasion while (for example) my kids play on the playground. So for me, the data plan was my big sticking point, but for me it comes down to an additional $20/month, or $240/year - not peanuts, but I can live with it.

 

[Elan]

I just pulled the trigger on a new Verizon iPhone. I had been in the market for a iPod Touch (to replace an iPod Classic that was stolen last fall), and already had Verizon, so after much hemming and hawing I went for it. The 32GB iPhone I bought is the same price as a 32GB iPod Touch ($299), so clearly there is a good amount of subsidy in the pricing. Maybe $650 is an overstatement, but it's not completely out there.

I'm not sure what point you're trying to make here. I think the fact that an iPod Touch sells for $299 (which is already quite expensive for a 32GB mp3 player) further reinforces the notion that an iPhone could be sold profitably for a similar amount. Where does the "subsidy" apply?

 

[paxsarah]

I'm not sure what point you're trying to make here. I think the fact that an iPod Touch sells for $299 (which is already quite expensive for a 32GB mp3 player) further reinforces the notion that an iPhone could be sold profitably for a similar amount. Where does the "subsidy" apply?

My point is that an iPhone basically = an iPod Touch + a fully functioned phone, packed into a similar sized case. The fact that they are both being sold for the same price when the iPhone is clearly a more complex piece of electronics indicates to me that the iPhone is being subsidized by the companies selling it and would otherwise be sold for well more than $299.

 

[Elan]

My point is that an iPhone basically = an iPod Touch + a fully functioned phone, packed into a similar sized case. The fact that they are both being sold for the same price when the iPhone is clearly a more complex piece of electronics indicates to me that the iPhone is being subsidized by the companies selling it and would otherwise be sold for well more than $299.

Ok, I thought that's what you were saying, but wasn't sure. I don't see the iPod Touch as being particularly dissimilar from an iPhone. At least in terms of cost to produce. If Apple can sell a 32GB iPod profitably for $299 (which, of course, isn't in question), I'm relatively certain thay could have similar margins selling the iPhone at $349.

Edited to add: The component cost for adding 3G and GPS (to make an iPod Touch more similar to an iPhone) is $27 (according to iSuppli).

Further edited to add: According to iSuppli, the BOM for Verizon's iPhone is $171.35. Of course, this is materials only -- no labor.

 

[SmithOp]

The maps app does routing and shows current location, that has been sufficient for me. I dont need it to speak turn by turn directions to me.

 

[Ken555]

Ken,

Does that mean you don't have a GPS app for your iPhone/iPad? If you do have a GPS app - which one and how do you like it?

Best regards,

Richard

Hi. I have the TomTom app for GPS. It's fantastic. I subscribed to the annual traffic updates (which really works). It's the same software they use on their hardware units, but for the phone. In fact, I have to use it right now!

I don't use it on my iPad (yet) since its just easier on the iPhone for me. But, i have it on both devices (since it syncs all purchased apps for one onto the other automatically).

 

[MichaelColey]

I was going to say that my app purchases have been around $20-30 total (almost everything I have was free), but this post reminded me that I have (and frequently use) the TomTom app, too.

The most expensive app I have is a TomTom GPS app which was $50. Most of the others were free or 99 cents.

So I'm probably closer to $75. Plus about $100 for the iPhone Car Kit.