Friday, August 08, 2008

Real Cost Of iPhone 3G In USA And Why Apple Is Bullish

According to Munster, one of the most bullish analyst on Apple (AAPL) shares are on the buy list and carries $250 price tag according to an article written by Eric Savitz states that there will be some where around 45 million morons or semi morons that unable to do proper calculations get drawn into headlight of low price of iPhone.
I saw about 4 of those morons today as I rode the elevator for less than 1/4 of a minute. So I was dragged into reading the article more closely to find out the actual price of iPhone 3G for US customers.
So while the retail price of the iPhone at $199 is half the price of first generation iPhone, there seem to be other costs will make the iPhone 3G more expensive during the life of the required two-year contract. It is also estimated that the actual hardware costs will be a lot higher than the stated $199 price tag.

The minimum iPhone hardware will cost minimum $217 for upgrade eligible subscriptions, and if you are not eligible it will be $417. Also new customers are estimated to spend $234 to $427. That is without the service fees that have become higher than with the older iPhone.
The minimum data plan will cost $30 and $5 for 200 text messages.

So I am very glad that we decided to invest in Apple rather than on iPhones and we thank all those people for keeping thee AAPL price tag up.

So if you want to read a more sane account of above data, please follow this link to read Eric Savitz. You will also see some funny and informative comments.


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