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Sat, Nov 21, 2009 - 05:33 PM EST  —  AAPL: 199.92 (-0.59, -0.29%)  |  NASDAQ: 2146.04 (-10.78, -0.5%)

Apple iPhone: The least expensive smartphone
Monday, July 23, 2007 - 08:59 AM EST

&t

"As with nearly any purchase, there are three prices to consider in buying a mobile phone," Daniel Eran writes for RoughlyDrafted.

• Upfront cost on the day of purchase.
• Total cost of ownership over its lifetime.
• Resale value after it is replaced.

For example, ;A $600 PC laptop that costs half as much as a new Mac Book--but which is worthless after two years of grief--isn't really a good deal considering that the Mac Book would easily command more second hand after two years than the “savings” offered by a generic laptop," Eran writes.

Apple's iPhone "is cheaper overall than other phones when considering total cost of ownership over its lifetime, even much cheaper phones with a subsidized upfront cost. Obviously, more expensive phones that compare to the iPhone in features are even more expensive when a service plan is included," Eran writes.

"The next time you hear a pundit referring to the iPhone's '$2000' price or its '50% profit margin,' you can rest assured that ignoring the rest of their comments is probably the best way to avoid being mislead by the noise of their desperate astroturfing," Eran writes.

Full article here.

[Thanks to MacDailyNews Reader "Too Hot!" for the heads up.]

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Jul 23, 07 - 08:04 am Comment from: Jeff

Apple iPhone: The smartphone with the highest value

Jul 23, 07 - 08:12 am Comment from: Macaday

Thankfully there are a few bloggers who can discern fiction from reality.

Daniel Eran is one of them.

Jul 23, 07 - 08:14 am Comment from: Macaday

Highest benefit?

Highest love rating?

Highest one in the eye to Microsoft et al rating?

Yes to them all.

Jul 23, 07 - 08:21 am Comment from: more crap

This is the most biased commentary I have ever read. He does nothing but make proclamations of his opinion with nothing to back them up.

Jul 23, 07 - 08:25 am Comment from: Gil

For one of my friends I work in the office it was a $3000 dollar iPhone he purchased the other day. Here is his story.

He has a Dell Laptop Computer and needed to upgrade to SP2 which he did. He connected his new iPhone and nothing worked. He was told he needed Vista. He bought Vista Home Edition and installed it. Again he tried to activate his iPhone. He was told he needed Vista Ultimate. He bought Vista Ultimate and tried to activate his iPhone again. It would not work. He was told this would have to go back to XP with SP2. Being so frustrated with this, he ended up buying a Macbook. Now he is able to use his iPhone now. I think there is a lesson here and yes this is a true story.

Jul 23, 07 - 08:30 am Comment from: The Fake John Wayne

You idiots are an unbelievable heard of sheep. M$ saved Mac's bacon and Steve is just a stupid hippy. Now the thanks he gets is that dumb commercial.

polly wants a carrot. Rah!!!

Jul 23, 07 - 08:31 am Comment from: Macaday

Re "more crap"'s comment:

- yep here is this person again.. sees DE's name up anywhere and he's one of the first to say his usual comments. Sad.

Jul 23, 07 - 08:32 am Comment from: ChrissyOne

@ Gil

Who was he 'told' by? Microsoft?

Jul 23, 07 - 08:32 am Comment from: Macaday

Learn to spell "heard" if you want anyone to take you seriously, you 28 year child...

Jul 23, 07 - 08:33 am Comment from: ChrissyOne

@ Gil

Waiting...

Jul 23, 07 - 08:35 am Comment from: Macaday

@Gil, either he's stupid. Or there are one million iPhone users and they are all, everyone of them Mac users. Don't think so.

Jul 23, 07 - 08:35 am Comment from: ChrissyOne

@ Gil

BTW, you're friend sounds like kind of an idiot.
"What, need to buy Vista? Okay!. Wait, need to buy another copy of Vista? Sure thing! Boy, this iPhone is hard to work! What? I need to go back to XP? Righty-oh! Dang! Still no dice!"

Jul 23, 07 - 08:35 am Comment from: ChrissyOne

Sorry, 'your'

Jul 23, 07 - 08:38 am Comment from: The Fake John Wayne

You think that's how you spell heard? What a moron. Get a dictunary. You Mac guys are like a cult. And Steve is your god.

Jul 23, 07 - 08:39 am Comment from: LinuxGuy and Mac Prodigal Son

The pundits and analysts are such an utterly corrupt gang of propaganda spewing jackasses, that you can not take anything they say at face value. Having said that, I am truly thankful for the effect these bozos have had in making me financially independent. They have so slimed Apple over the years – depressing its price per share -- that I have been able to buy AAPL at bargain basement prices, as I watch in awe while AAPL doubles and redoubles so quickly.

But now that I am retired and fully invested in AAPL, with no more major sources of AAPL investment money, I am ready to see these idiots unmasked. That may well happen as AAPL passes HPQ and then IBM in market cap. One would think those events will be major stories in the mainstream media. At some point the pundits -- for their own professional survival -- will learn to kiss Apple's corporate ass as they now pucker up for Ballmer's buns and as, decades ago, they did groveling before IBM's corporate vertical smile. Whores will be whores.

Jul 23, 07 - 08:41 am Comment from: Anonymous via iPodDailyNews

Yeah, right.

I do not know, how you calculate, but at least in AT&T;with the same service plan 4GB iPhone is more than $200 more expencive, than Nokia N95 ($749 + $20/month cheaper plan). Naturally 8GB iPhone will be more $300 more expencive, than Nokia N95.

I just checked that against 450/National and 900/National plans for iPhone and for non-subsidied phones plans (such as Nokia N95).

Jul 23, 07 - 08:42 am Comment from: Gil

@Chrissy

He told me that it was iTunes that told him. I don't know if that was true but that is the story he told me. He is a die hard Windows fan and never thought he would ever buy a Mac. But he really likes the iPhone and needed to have it and spend whatever it took to have the most recent gadget.

Sorry I was late in responding. Work is getting in the way. Back to work (on a PC Ugh).....

Jul 23, 07 - 08:45 am Comment from: ChrissyOne

iTunes did not tell him to install Vista. It simply cannot do so, it does not have any mechanism to do so.

Jul 23, 07 - 08:47 am Comment from: ShadowMac

Thank the gods, FINALLY someone's at leasts trying to interpret the numbers properly intead of just comparing the superficial pruchase price. Numbers don't always tell the truth.

As the old saying goes: "There are lies, damn lies and statistics."

Jul 23, 07 - 08:48 am Comment from: Gil

@Chrissy,

Yeah I know. Well whatever. He really is not that smart.

He showed me a picture of his new Macbook with his iPhone next to it. That is proof enough for me...

BTW Daniel Eran Rocks!!!!!!

Jul 23, 07 - 08:57 am Comment from: The Fake John Wayne

I'm going to buy more MST stock today, that's why I like the company.

Jul 23, 07 - 09:00 am Comment from: MikeR

@LinuxGuy and Mac Prodigal Son
Do you think there will be a down turn (buying opportunity) in after hours trading on Wednesday after Apple financials come out?
My wife has been saying no for years to Apple stock. We could be in your shoes Apple wise. She did buy into an Apple ELK and we made 12.5% over two years. That's now matured and we've got a bunch of money to reinvest. What do you think?

Jul 23, 07 - 09:23 am Comment from: informed

Hey MDN,

Just wondering: What do you think of the new Apple iPhone?

How easy is it to wipe your excess semen off its screen?

Jul 23, 07 - 09:29 am Comment from: ChrissyOne

Just lick it off.

Jul 23, 07 - 09:29 am Comment from: LinuxGuy and Mac Prodigal Son

MikeR,

The short term, especially now, is so volatile that I can't tell you which way things will break. Most of the talented day traders -- and they are very talented -- on the Apple Finance Board site warn that short term games this week are a crap shoot. I can only say that for the long term -- the domain of investors as opposed to traders -- the prospects for AAPL are fabulous. I have gotten over the angst of not buying in at the best times and reveling in the huge long term gains that I have made. This are based on the fundamentals of Apple and its competition, not the shenanigans of the whoring pundits and hedge fund shills spewing their agenda ridden FUD.

In fact, I now have to awake my son who just got out of the Army and saved a bunch of money – tough to spend in Iraq – to buy another batch of AAPL today. He is in the same bind as you are -- not knowing when to buy in. I warned him Friday that he would likely watch the stock price climb, while he tried to time the market, waiting for the dip that never came. I lost a lot of opportunity myself in waiting and having Apple run up – day after day. But I did finally act and even though I bought close to a short term high a few weeks ago, people would kill to be able to buy at that price now.

Jul 23, 07 - 09:35 am Comment from: Mac4lfe

Since I bought the iphone its hard to keep it clean. I just cant keep peoples hands off it.

Posted from my iphone.

Jul 23, 07 - 09:45 am Comment from: DLMeyer

morecrap claims "This is the most biased commentary I have ever read. He does nothing but make proclamations of his opinion with nothing to back them up."
Those claims are certainly "biased", but that does not make them "wrong". Most of us get along just fine with our biases every day. What bothered me was the cross-product analysis. Now, I just did such an analysis for a friend - $1k MacBook vs a $500 PC laptop. I asked about her need for a camera and the iLife package ... she needs both. A few questions later and the price difference was nearly made up - and I'd said nothing about the convenience of her not having to build her system almost from scratch or of her not having to deal with malware. BUT! That's the MacBook vs a PC, NOT an iPhone vs "whatever". Is it a "Good Buy"? Not for me. Certainly for someone who will use most of the features.

DLMeyer - the Voice of G.L.Horton's Stage Page Pod-Cast

Jul 23, 07 - 10:25 am Comment from: $$$ Blackberry

I work in IT and at work me and the other IT guy both have Iphones. People are always like haha you paid too much for that phone, and we just laugh cause we know the truth. But on thursday, i decided to put an end to the stupid people comments. During a meeting I was still getting the comments, so I stood up and pointed out to each person. "Plant manager" do you know how much your phone cost? No he replied, $1000 bucks not including the 150 bucks a month for service, mine cost 600 and i pay 60. HR guy yours is 600 bucks and about the same in plan rate. Should i go on, they just sat there looking at me. I ended my argument with yeah, and I can play videos and stuff the real web unlike your 1000 blackberry with crap keyboard.

Jul 23, 07 - 11:20 am Comment from: BuriedCaesar

Them what's ignorant will attack what they don't know.

Jul 23, 07 - 11:38 am Comment from: hotinplaya

@Gill
He told me that it was iTunes that told him. I don't know if that was true but that is the story he told me. He is a die hard Windows fan and never thought he would ever buy a Mac. But he really likes the iPhone and needed to have it and spend whatever it took to have the most recent gadget.

Hey lighten up, if Gills "diehard" Windows fan, had to spread a little FUD, on why he made the switch, at least he saw the light!!.

Jul 23, 07 - 11:47 am Comment from: hotinplaya

Same subject,(sorta of) I pulled that with the wife, last July while in the States, pulled her into an Apple store (our 1st), with the intent (what I told her) of buying a mini, and using my HP monitor and keyboard.

After spending some time looking at all the options, we walked out with a 20"iMac (her idea)

now, 3 MacBooks, Apple Tv, later, our only regret, is if we had invested that 2000usd in Apple stock, I could buy our whole Apple inventory with that investment

Jul 23, 07 - 11:47 am Comment from: Vmac

iPhone: $600 + rate plan

Great feeling while using it: Priceless

(not to mention the envious looks of potential buyers and the disgusted reaction from insecure iPhone haters)

Jul 23, 07 - 12:19 pm Comment from: Gil

@hotinplaya

Thank you. I did not want to embarass my friend. He is one of those guys that types with one finger so I took, with a grain of salt, the things he said. He knows I'm a power Windows and OS X user. That being said, he really likes the Macintosh now and never knew he could do the things that us Apple fans take for granted. He did not know you could run Windows and has now asked for my help to install bootcamp and run some of his windows programs. Slowly and surely, the light is showing upon those who have never seen it before. It is up to us, that have seen the light, and share that with others......

Jul 23, 07 - 01:09 pm Comment from: Mr. Reeee

Gil,

get your buddy to install Parallels. He'll be happier and abandon MS for good soon enough.

Aug 01, 07 - 03:55 am Comment from: peter morgan glenrothes scotland

i hear you all raving about the new apple iphone would i be able to buy one in las vegas at the end of the month when i am on holiday and will it work in the uk

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