Every tech analyst, blogger and “expert” is voicing their opinions about how the iPhone is more expensive over the life of the 2 year contract than the first generation. This is true and I’m going to explain, in the simplest way, why it’s not that big of a deal.
This is a 3G phone that passes data in and out twice as fast as the 1st generation phone. It’s a 3G data plan so $10 dollars more a month isn’t that much to ask!
About the iPhone plan not including 200 free SMS messages: So what? Some people weren’t even using them. The iPhone’s plan with 450 minutes, unlimited data and no SMS plan is still cheaper than a Blackberry with data and comparable minutes. We have a new iPhone with a faster data connection and GPS and yet complaining about an increase in the rate plan.
What would be a big deal is if they raised the price of the old plan too. AT&T left any iPhones on EDGE (1st gen) with the exact same plan as before. It’s no like AT&T pulled the whole “operating cost” excuse and raised prices all around. I’m going to state this again, this iPhone uses a data service that cost AT&T millions of dollars to deploy and costs more to operate so $10 dollars more a month is not that much to ask.
Another thing, you don’t have to upgrade! Apple isn’t forcing you to buy the newest model. I’m not going to buy a new sports car and complain that I have to use 93 octane gas. I had a choice and decided to go with the better model.
The big picture is, will this affect Apple’s sales of the new device and I say no. People don’t look at the rate plan before a purchase. It’s only $199 and that stands out in people’s head. Apple will sell tons of these, don’t worry.

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