While I am thinking how much is the impact of iphone and carrier subsidization in the mobile industry, my own spend came into picture. Here is the math
I got my first iphone 3G in July 2008 and then upgraded to an iphone 4 in Aug 2010. Cost $200 each which is $400 straight to Apple.
Now if I consider the data plan - till now I paid $1080 to AT&T. If I consider that I have to own the phone at least next 6 months to get an upgrade (and 1 more year if I dont want to pay an ETF), I am practically locked down to spend at least $1440 to AT&T. And the cost of devices that AT&T paid upfront - not more than $700 - a neat $740 gross..Not bad I think- on an already existing 3G infrastructure -adding more lines doesn't cost much - perhaps $100 per year at the most for administration and maintenance of my account. I think there is a reason why mobile carriers are after smart phones.
Commercials aside, how much value did iphone brought to me - just great. And after jail breaking, it just exploded. I could customize to my heart - with many apps and mods. It is an experience of it's own.
I got my first iphone 3G in July 2008 and then upgraded to an iphone 4 in Aug 2010. Cost $200 each which is $400 straight to Apple.
Now if I consider the data plan - till now I paid $1080 to AT&T. If I consider that I have to own the phone at least next 6 months to get an upgrade (and 1 more year if I dont want to pay an ETF), I am practically locked down to spend at least $1440 to AT&T. And the cost of devices that AT&T paid upfront - not more than $700 - a neat $740 gross..Not bad I think- on an already existing 3G infrastructure -adding more lines doesn't cost much - perhaps $100 per year at the most for administration and maintenance of my account. I think there is a reason why mobile carriers are after smart phones.
Commercials aside, how much value did iphone brought to me - just great. And after jail breaking, it just exploded. I could customize to my heart - with many apps and mods. It is an experience of it's own.
