Hidden Costs of the iPhone 3G

When Apple released the iPhone last year, it wasn't long before three major complaints surfaced about it.

1. The cost of the iPhone itself
2. The cost AT&T charged for the data plan
3. The speed (or lack thereof) of Internet/Web access

Apple quickly responded to the iPhone cost issue by slashing the price. The 3G model has the price slashed even further as the iPhone is now subsidized by AT&T. (Apple charges AT&T more per phone than AT&T charges the customer.)

The speed issue was one peculiar for a phone that relies so much on the Internet. Apple's excuse was that they used the slower AT&T Edge network because it had coverage in more cities than AT&T's 3G network. Hmm... other AT&T data-centric phones offered 3G, falling back to Edge when 3G was unavailable. I guess Apple didn't think of that. Anyway the iPhone 3G addresses the speed issue by using 3G finally. This is one of the things I was referring to when I've said that the iPhone 3G is most of what the iPhone should have been one year ago.

And then finally there's the data cost issue. AT&T hasn't solved that, they've raised the price by as much as 50%! Yes, the lowest cost iPhone data plan WAS US$20 per month and included a few hundred text messages. The NEW lowest cost iPhone data plan is US$30 a month and doesn't include ANY text messages.

Over the life of the iPhone 3G or at least the life of the mandatory new two year contract, that means at least an extra US$240 in data charges which pretty much covers the subsidized price difference between the iPhone and the iPhone 3G. Folks will still be paying the same for their iPhone and data plan, just part of it will be via monthly payments.

Smoke and mirrors... the new AT&T business plan.

Postive Proof of Gobal Warming

No matter how you feel about it, this photo certainly makes a case for global warming.

Standing in Line

All day I read stories about people standing in line for hours to get the new iPhone 3G on the first day of release. Here is one such story.

My boss planned on visiting one of the Apple stores here in Las Vegas to get his new one (he got one last year too) but when he found out that there were already 200 or more in line at both of our Apple stores, he went to an ATT&T store instead. After over five hours in line, he still didn't have a working iPhone 3G. (Apple's iTunes servers couldn't handle the load.)

Now, I'll admit that that iPhone is slick. The iPhone 3G is even better, in fact it's more like what the original iPhone SHOULD have been a year ago. When AT&T finally loses their monopoly on the iPhone, I figure it'll be as full featured as my Sprint Mogul and I'll probably get one.

But what is wrong with these people? Who in their RIGHT mind will stand in line for hours to buy a toy? The first person in line last year at the New York 5th Avenue Apple Store waited there for 4.5 days!

Now I'll admit, I stood in line for almost five hours once. In Nipton, California, the closest place (at the time) to Las Vegas that sold California Lottery tickets. The California Lottery had gotten over US$100,000,000 for the first time. A slim chance to win over one hundred million dollars? Yeah, I could see it. Though I didn't realize before I headed there what kind of wait I'd have.

But every year, I hear about people standing in line for hours or days to buy everything from concert tickets to new game consoles to sheesh, the latest version of a computer operating system! All so that they can have it on the day of release. I guess if you really like the band and it's likely to sell out, I can see the concert thing. Sort of.


Every year, people camp out in lines, usually around Christmas time. Usually we hear reports of fights breaking out, people in line being robbed, etc.

Sorry Charlie. Not for me. That is what Internet Shopping and FedEx is for.