Comparing apples to apples: two year smartphone cost examined
Over the past few month, we’ve seen several sites run cost comparisons on the latest and greatest smartphones from each of the top four carriers in the US. Good — presenting readers with cost analysis is always a good idea. We’re finding that just about all of these comparisons do so on the high end of the spectrum however, comparing the cost of owning each of these great smartphones along with the most expensive plans available from their respective carrier. Fair enough, we suppose. The simple fact of the matter is that not everyone is interested in an expensive unlimited plan though. For these people, comparing the maximum possible cost of several smartphones definitely makes for an exiting read, but we don’t know how useful it really is.
Unlimited plans continue to gain popularity as cost is driven down but the fact of the matter is that they’re just not for everyone. As such, rather than compare the highest possible cost of four popular smartphones maybe it makes a bit more sense to compare their relative entry-level costs — the base price, where most comparisons happen. Yeah, let’s give that a shot…
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T-Mobile G1
Handset: $149.99
Monthly cost: $39.99 voice plan (300 minutes, unlimited nights/weekends, myFaves), $34.99 T-Mobile G1 Unlimited Web + Unlimited Messages (unlimited Web/email/data/SMS/MMS)
$74.98/month — $1,799.52 over 2 years + $149.99 for the phone
Total: $1,949.51
Sprint, Palm Pre
Handset: $199.99 (after $100 rebate)
Monthly cost: $69.99 Everything Data Plan (450 minutes, unlimited nights/weekends, unlimited Web/email/data/SMS/MMS)
$69.99/month — $1,679.76 over 2 years + $199.99 for the phone (after $100 mail-in rebate)
Total: $1,897.75 (after $100 mail-in rebate)
Verizon Wireless, BlackBerry Storm
Handset: $149.99
Monthly cost: $39.99 voice plan (400 minutes, unlimited nights/weekends), $29.99 Email and Web for BlackBerry (BIS, Web)
$69.98/month — $1,679.52 over 2 years (excluding SMS/MMS) + $149.99 for the phone
Total: $1,829.51 (excludes SMS/MMS, starting at $5/month)
AT&T, Apple iPhone 3GS 16GB
Handset : $199
Activation fee: $36
Monthly cost: $39.99 Nation 450 w/Rollover (450 minutes, unlimited nights/weekends), $30 Data Plan for iPhone (unlimited Web/email/data)
$69.99/month — $1,679.76 over 2 years + $235 for the phone plus activation.
Total: $1,914.76 (excludes SMS/MMS, starting at $5/month)
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As you can see, about $120 separates the least expensive smartphone (BlackBerry Storm) from the most expensive smartphone (T-Mobile G1) when base prices are compared. Over two years that difference works out to a whopping $5 per month. Considering the G1 plan includes SMS/MMS and the Storm plan doesn’t, that difference is made up should you choose to add Verizon’s optional base messaging plan at $5 per month. Then the cost of these two handsets is nearly identical.
So what have we learned here? Look at your potential purchases from your own unique perspective. Wireless plans are complicated and should not be handled on an even playing field; each carrier has similarly priced plan options that feature both high and low points. Most importantly perhaps, don’t go to an AT&T/Sprint/T-Mobile/Verizon Wireless shop and expect to get help that is in your best interest. Determine what matters most to you — whether it’s more minutes, unlimited messaging, etc — and do your own research with those things in mind. For example: The G1 plan offers unlimited SMS/MMS while the iPhone 3GS plan includes no messaging, but you get 300 minutes with the G1 and 450 rollover minutes with the iPhone 3GS. It’s all about give and take… An educated consumer is a happy consumer.
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