The Poor Man’s iPhone?

With the latest price drop the Palm Pre is no longer the same price as the iPhone 3G. In fact, if you go to a Sprint store you’ll have to shell out $300 before a $100 mail in rebate for the phone. Apple will part with an iPhone 3G for just $99 now.

The problem is that the initial cost doesn’t matter, it’s deceptive. The iPhone 3G will cost you much longer in the long run.

Hardly the most generous wireless carrier, AT&T’s cost structure is as follows:

AT&T iPhone 3G Plans with Unlimited Data 450 Minutes 900 Minutes 1350 Minutes Unlimited Minutes
Monthly Cost $69.99 $89.99 $109.99 $129.99
Monthly Cost with 200 Text Messages $74.99 $94.99 $114.99 $134.99
Monthly Cost with Unlimited Text Messages $89.99 $109.99 $129.99 $149.99

 

A voice plan will cost you anywhere from $40 - $100 per month. The iPhone data plan is another $30 per month on top of that (required for the iPhone). If you want any sort of text messaging bundle that’s another $5 per month, or $20 per month for unlimited messaging. If you want unlimited everything that’s $149.99 per month from AT&T or $3600 over the course of your 24 month contract. Note that AT&T hasn’t announced pricing for tethering on the iPhone 3GS. I can’t wait to see what that’ll be like.

Sprint, admittedly not as popular of a carrier as AT&T, does a lot better.

Sprint’s data plan is unlimited...everything. You get unlimited data transfers (no tethering support), unlimited SMS and unlimited MMS. It’s included with every Palm Pre plan.

Sprint Palm Pre Plans with Unlimited Data 450 Minutes 900 Minutes Unlimited Minutes
Monthly Cost with Unlimited Text Messages $69.99 $89.99 $99.99

 

The only thing you have to choose is how many minutes you want. The 450 minute plan will set you back $70 per month, the 900 minute plan costs $90 and unlimited voice is $100. That’s $49 less per month than the equivalent bundle from AT&T, a savings of around $1200 over the course of two years.

Granted AT&T allows your unused minutes to rollover month to month, but Sprint lets your free nights and weekends start at 7PM instead of 9PM. Even taking that into account, there’s no getting around the fact that for a full featured account - Sprint is a lot cheaper.

If you don’t text a lot however, much of Sprint’s advantage disappears. I would hope that Sprint’s plans could pressure AT&T to include SMS/MMS in the unlimited data package (a SMS is data, isn’t it?), but until then if you want a more affordable monthly plan the Pre is the way to go. And no, Sprint’s SERO plans won’t work on the Pre.

Built in Turn-by-Turn Navigation

Another aspect of the Pre’s tremendous cost advantage is its free, out of the box, turn by turn navigation. The Pre has a GPS just like the iPhone 3G/3GS, but it also has a Sprint Navigation app that can be used as an in-car navigation device.

The nav works well and unfortunately, to get something similar from Apple you need to buy the currently unavailable Tom Tom app. There’s no word on pricing as of yet.

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  • OCedHrt - Friday, June 19, 2009 - link

    My HTC has predictive text input (based on key locality) in case of a miss so I don't think Apple has a patent on it.
  • macs - Friday, June 19, 2009 - link

    Speaking of fast web browsing.... i use opera mini on my google Ion phone (android). It delivers full browsing experience and it's blazing fast. Opera mini loads anandtech.com over my 3g network in just 9 seconds. You should try!
  • imaheadcase - Friday, June 19, 2009 - link

    Thats how apple stays in business right there, everyone thinks throwing money at overpriced products IT will get better eventually.. ZING!

    I don't know why this review is comparing it to a Iphone, Iphone is outclassed by other smartphones as it is, why not compare it to a real phone like a HTC touch or the like? You know, a phone that is popular with regular people and not hollywood hipsters only..

    Downvote if you want, but the FACT of the matter is, the Iphone is a niche market, look at the top phones sold by At&T, the basic flip phone is still the best selling phone in the world, the HTC touch even outsells the iphone 10-1. Like I mentioned before, I know one person who has a iphone and he only got it because parents got it to him as a going away to collage gift.

  • jmaine - Saturday, June 20, 2009 - link

    Where are you coming up with these stats from? Please show me one reliable source that says the HTC Touch outsells the iPhone 10-1. Please leave the bs in your dreams.
  • ltcommanderdata - Friday, June 19, 2009 - link

    One thing I find funny about arguments that the iPhone lacks basic features found in other phones is that despite this Apple has still sold 21 million iPhones as of March 2009, which is quite a success for a company that wasn't in the cell phone business 2 years ago. The question other phone manufacturers should be thinking about is what happens when the iPhone incorporates many of these lacking hard features in addition to the fluffy pizzaz it already has? How much additional demand will there be for a full featured iPhone?
  • Anand Lal Shimpi - Friday, June 19, 2009 - link

    The reviews agree, the HTC Touch isn't in the same class of smartphone as the iPhone. Most phones will outsell things like the iPhone; lower prices and lower monthly fees will determine quantities, but the space the iPhone competes in is the high end smartphone market where the stakes/players are a bit different.

    Take care,
    Anand
  • rudy - Monday, June 22, 2009 - link

    I cant find any provider which sells an HTC touch cheaper then an iPhone.
  • Stas - Friday, June 19, 2009 - link

    Same. I know 2 ppl that had iPhones. 1 was my techy friend, who took it to the shooting range and unloaded his rifle at it after 5 months of use. The other is my wife's friend who only knows how to call and text on it (not sure WHY she got it... oh, yeah, it's COOL).
    But I can think of at least 8 ppl that have a Blackberry... :)
  • anandtech02148 - Friday, June 19, 2009 - link

    Nokia N97, europe's answer to all american hyped up marketing trash. N97 unlocked, using Fring to escape that other american trash, US cellphone pre-nups.
    Voip, sip account, sweetness. symbian s60 5th is a bit shaky, but then again there isn't a perfect Os for new cellphone model that comes out every 3months, thanks to Taiwan,Korea and China new handset are out every 24hrs. the only win for Apple here is a lot of laid off engineers creating adobe flash games for the iphone, how else would you get 50,000 apps. my hope is Nokia's answer apple in the next 6month with dual cores Arm.




  • snarfbot - Friday, June 19, 2009 - link

    im glad you're happy with your 700 US dollar phone.

    dumb americans are happy to get a free phone and use the same carrier for a couple of years, probably because almost every network is essentially the same in terms of features/cost.

    on a side note, something needs to be done about the word american.

    america is a big continent, people commonly refer to those living in the USA as "americans".

    it would be more fitting if we were dubbed usa'ians our something so our neighbors dont get insulted by accident.


    which brings me to my last point, in response to the actual article!

    it is odd indeed how the messaging protocol varies regionally, i think the major reason most people in the US use AIM, is because we were all introduced to the splendor of the internet by aol in the 90's, then when broadband became available people switched over and kept their AIM screen names. Those that used a different isp just used AIM because everyone else was on aol, etc.

    Peoples elsewhere probably used icq, until msn/yahoo came along and freed them from oppression.

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