When Free Isn’t Exactly Free: How a Free Phone Actually Costs $1,980
So you think you can’t justify the $499 and $599 price tag for the iPhone and thought you would save money getting a free PDA phone, in this case a Treo 680. According to PalmAddicts a free phone is actually more expensive then the iPhone.
| Phone Model | Phone Cost | Monthly Cost 450 minutes and unlimited data |
SDHC card | 24 Month TCO |
|---|---|---|---|---|
| Treo 680 with 4GB SDHC card |
$0 | $80 x 24 = $1,920 | $60 | $1,980 |
| 4GB iPhone | $500 | $60 X 24 = $1,440 | $0 | $1,940 |
| Treo 680 with 8GB SDHC card |
$0 | $80 x 24 = $1,920 | $80 | $2,000 |
| 8GB iPhone | $600 | $60 X 24 = $1,440 | $0 | $2,040 |
So the difference between a free Treo 680 and a $500/$600 iPhone over the course of 24 months is a grand total of $40… or $1.67/month or less than $0.40/week. [...] Someone might argue that the iPhone’s battery may need to be replaced by then, which is true, but then again I’ve gone through several different Treos over the past 4 years because their either broke or wore out. So for the purposes of this discussion let’s not factor in hardware wearing out. By the time the iPhone battery needs to be replaced, there may be other alternatives, as there are today for iPod batteries which wear out.
All this study showed me is the cellular service is ridiculously expensive.
