In tribute to Apple’s release of the 3rd generation phone, I will give a quick rundown of the true cost of owning an iPhone. The typical question that usually gets asked is, is it worth owning one? Instead of answering that question, I’d rather illustrate some facts that you may or may not know in order for you to make the most logical buying decision. It is only proper that such costly investment merits a more comprehensive research. A lot of consumers falls in the trap of quickly owning one because of the growing fad that the society has imposed upon itself. My purpose is not to dismay potential customers but rather create a little awareness. As always, an educated purchase is always a great purchase.

Intro
While the $199/$299 price tag seems appealing at first (16G/32G 3GS model), there are other specifics that strongly needs to be more considered than just the upfront cost. The asking price is in line with other smart phones and at its level of sophistication, the price point is set reasonably. The design is well above the industry standards; a unique design originated by Apple. Its success is attributed to its well-crafted marketing campaigns and a design well enough to impress the new generation of consumers. In addition to its simplistic phone interface, its built-in MP3 player makes it practical for everyone.

Initial Fees
Aside from the discounted price, you’ll also have to pay for a one-time processing fee, and taxes (calculated using the original taxable amount of $599). You may or may not have known this but it will cost you close to $100 in addition to the cost of the phone itself.

Monthly Charges
Just to state the obvious, owning the iPhone at a discounted price means that you’re going to be locked in a contract with AT&T for a duration of 2 years. The discounted price that you pay for is a trade off for remaining under AT&T’s terms and conditions until the contract expires. The $30 data plan is also  required in addition to your current voice and text plan. This add-on is an essential piece if you want to take advantage of iPhone’s major features.

The fact that iPhone is the only phone that requires such add-on somehow is disturbing to say the least, but it’s a cost to pay for to own one. Nothing does sure beats a $100+ cell phone bill every month! You can then run up to your friend(s) and declare how cool you are or show them the latest “app” that you’ve purchased.

Extra Expenses
One of the more exciting features of iPhone is its App feature that allows you to install purchased applications from the Apple store. The price range for applications can range anywhere from being free to $30 depending on the complexity and/or greediness of its developers. This feature alone generates Apple a 30% cut in profit for each app sold; not to mention the $99 annual fee for the developers to remain in the program. The app feature in my mind is arguably the “core” of the phone, eliminating the dullness that most cell phones possess. A $.99 or more app purchases here and there can add up very quickly.

Cost Summary
To put things in perspective, here’s an outline of what’s been covered so far regarding the cost of owning an iPhone.

• Initial fees - $100 + cost of iPhone =  anywhere from $300 to $450
• Monthly charges – your plan + $30 = anywhere from $100 to $200. The monthly payment of $30 alone will cost you $360 in a year.
• Extra Expenses – variable amount

Apple’s 3rd Attempt
Within a matter of days, the 3rd generation of iPhone is going to be released. This anticipated 3rd release boasts plenty of features that will finally make it a complete phone. As sophisticated as iPhone may appear, the phone developers has completely ignored a few major phone features. It took Apple 3 attempts before realizing that MMS  (Multimedia Messaging Service) is a telecommunication standard that has been around for many years! Even my older non-sophisticated Nokia phone had one. Another issue that aggravates majority of iPhone users is the lack of the copy-and-paste feature. Being a touch screen-based phone, this is a standard function that should have been there since first release.

From its 2nd to its 3rd release, hardware wise, the changes are insignificant to say the least. If the extra 2-hour battery life, increased CPU power and an extra 1Mpx on your camera is worth paying another $199 and renewed 2-year contract, knock yourself out. In my opinion, the more significant changes are in the software (firmware) side such as voice-control, improved GPS, voice-recorder, etc.

Conclusion
Whether you should invest in owning an iPhone or not really depends on your purpose and needs, and whether the extra cost justifies that purpose. The cost outlined herein should help you make a sound purchase since cost can be a major factor. I think that every purchase that we make should be given some clear thoughts as whether it supports our needs or just a desire to fulfill our inner gratification.

- Dennis