Virtual Entrepreneur

Talk Is Cheap But Data Is Cheaper On The iPhone

June 28th, 2007 | Author: MrsMoney

Internet News:
As the technology press breathlessly anticipates the rise of the iPhone this Friday at an Apple store near you, potential customers remain wary of the product’s $500 to $600 cost.

But according to at least one analyst closely watching the situation, the pricing plans AT&T and Apple announced today should ease some of those concerns.

IPhone owners are free to choose from any of AT&T’s wireless contracts, but the companies today unveiled 3 new plans which include unlimited data, Visual Voicemail, 200 SMS text messages, roll over minutes and unlimited mobile-to-mobile calling.

The individual plans, which can also be packaged into family plans, are priced at $59.99 for 450 minutes, $79.99 for 900 minutes and $99.99 for 1,350 minutes. Each plan calls for a two-year service agreement with AT&T and requires a $36 one-time activation fee, according to a statement.

‘Holy Cow. This is really cheap,’ Cowen & Company analyst Shaun Parvez told internetnews.com.

Parvez explained that what’s so cheap is AT&T’s $20 charge for unlimited data, pointing out that the company typically charges $40, $60, or $80 for voice alone. Parvez said that as recently as 2 years ago he went with T-Mobile for himself because Cingular’s offered a $40 data plan.

American Technology Research analyst Shaw Wu said a cheap data plan is especially critical for a phone that markets itself as a three-in-one device, one-third being a wireless connection to the Internet. He’s even optimistic the pricing plans will help potential customer get over Apple’s $500 price tag.

‘We think it will,’ he told internetnews.com. ‘The price of the plan is very critical. It’s something people pay on a yearly basis. In the end, the price of the phone is just a fraction of the cost of owning the phone.’ Full article.

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