The cheaper 3G iPhone actually costs more!

$399 - $199 = -$160

iphone 2g iphone 3g

This is a perfect example of how marketing works magics with numbers. You probably heard that Apple is releasing a new version of their popular phone. The support for 3G and built in GPS are the major upgrades. The cool part is that the phone will cost you $200 less, if you trust the PR nerds from Apple.

Don’t get fooled by this marketing trick. If you calculate the true cost to own of 3G and 2G iPhone, you will find that the “cheaper” new version will end up being $160 more expensive over the period of 2 year contract, now mandatory with the phone purchase. This of course doesn’t mean you shouldn’t buy one. ;-)

Source: iPhone 3G’s True Price Compared at Gizmodo (via Digg)

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2 Responses to “The cheaper 3G iPhone actually costs more!”

  1. 1 3GWhiz Jun 19th, 2008 at 4:54 pm

    Does this mean the 4G will be free but really cost an arm and a leg?

    I can’t believe marketing would spin something this important!

  2. 2 Jake Jun 19th, 2008 at 11:26 pm

    You can’t blame AT&T for subsidizing the cost of the phone and making it up with increased data rates. It’s cheaper than most unlimited 3G plans out there, and you are getting an incredible phone for $200.

    Personally I am not getting it, since I already have the 2G model and don’t see much reason to upgrade for slightly faster data, GPS and increased phone bills!

    The real excitement is the 2.0 firmware and all the 3rd party apps that will come with it!

    I’m not a fan of jailbreaking, if you hadn’t noticed…

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