iPhone’s True Cost: $1936

Here’s how much an iPhone will really cost you.

• $640 Phone – $599 plus tax (~8%)
• $60/mo Voice Plan – cheapest plan with unlimited nights and weekends
• $40/mo MEdia Max 3000 Bundle – includes 3000 texts and unlimited MediaNet
• $8/mo Fees

Total ownership cost for the first year: $1936

Awesome! Let’s get one! — BEN POPKEN

True cost of the iPhone [CenterNetworks] (Thanks to Jennifer!)

Comments

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  1. Inverse24 says:

    This article is flawed, they used the most expensive plans and they think you need MediaNet for internet. *WIFI IS FREE*. This is way-OVEREXAGERATED. Either way you still have to pay for using a celluar company so the most you would pay for the iphone is 599 since the bill is a given.

  2. Grrrrrrr, now with two buns made of bacon. says:

    But it’s shiny and people will worship you! (Well, until it gets stolen or it falls out of your pocket and into the toilet bowl)

  3. HelpMeHelpYou says:

    Looks like I’m keeping my cheepo RAZR for a lot longer than I thought. It’s crazy how people are obsessed with mobile phones and all their useless bells and whistles that MOST people will probably never use. I think most people are buying this for aesthetic purposes and willing to shell out a few extra Benjamins so they can look pretty in front of their friends or walking on the street. The funny thing is, I expect that the majority of the people who buy this phone are the ones that really CAN’T afford it and want one to feel better about themselves. The brokest guy I know (he doesn’t have a job or a car) has a phone like 10x better than mine. I don’t know if I should be laughing or crying.

  4. Tim Matheson says:

    It is all about priorities. Your friend without a car may prioritize his phone more than a car. He may think why buy a car when I can just call a ride on my ultra cool iPhone. Almost 2 grand for any electronic device other than a computer is absurd IMHO. Apple has never been a bargain friendly company to begin with. You are right about people wanting things they can not afford. People tend to put more value on items that exceed their budget. I think this is going to be the next Razr and will be available for around $500 1 year after its release 2 years after its release it will be obsolete so keep that in mind if you’re considering shelling out 2k to Apple for this phone.

  5. Tim Matheson says:

    Opps I forgot that was service included I guess I should have read the post before commenting. Still wait and see this phone will become affordable. People who pay that price are paying for the “I got the latest technology” factor.

    Best,

    Tim Matheson

  6. SexCpotatoes says:

    HAhahahaha, nice math there. 8% tax on $599 is $47.92, therefor, it’s $646.92 for the phone, not $640.

  7. Xkeeper says:

    I suspect rounding was used. Whatever, it’s seven dollars off.

    In any case, somehow I bet they’re going to be pushing this as hard as they can. My mother still has one of the old Sprint phones with a black and white screen that had no extra bells and whistles outside of voice messages and one of those old games, and I’ve always wondered if they still sell them…

    In other news, isn’t the contract actually two years? So the actual cost is much higher (my estimate comes to about $3,222).

    For a phone.

  8. kenposan says:

    I still haven’t figured out why camera phones are so cool. I never use my camera. MP3 player makes more sense to me but I don’t need that either. I WANT A PHONE. :)

  9. 5cents says:

    That number is scary high… how about a different way to calculate cost of ownership.

    1. $646 (phone + tax)
    2. $??? ETF for cancellation of contract.
    3. $??? Hiring Taiwanese coder to hack software so its unlocked and able to load 3rd party apps, priceless.

    But seriously, it should be less than the thousand dollar sum quoted above dontcha think?

  10. AlteredBeast (blaming the OP one article at a time.) says:

    I have found a camera phone very useful. I’ve take pictures of odd things I have encountered (like the time I was attacked by a family of swans).

    I find them extremely useful in auto-related situations. When in a car accident (that isn’t your fault) you can take a bunch of pictures of how the cars are situated, and any damages to the other vehicle. This way if they try and present a different story in court, you can back the facts with your photos. Also, when I am forced to park next to a jackass who is right on the line (or over), I take a picture of his car parked next to mine. This way if he scratches my car trying to get into his, I have is plate number.

  11. RumorsDaily says:

    I was given a fancy Treo over the summer for free (long story) but before that I had an old phone with a black and white (or blue and white) screen: the Samsung r225. I’ve had it for years and it still works fine. I assume that when this fancy Treo breaks, which I’m certain it will do shortly, I’ll replace it with the old Samsung.

    I was hoping for a cheap iPhone that only did music and phone calling, as that seemed useful to me, but I guess I’ll be waiting.

  12. timmus says:

    I’m still in hog heaven with my ghetto Tracfone. Screw the cell phone racket.

  13. From post: $640 Phone – $599 plus tax (~8%)

    Comment: HAhahahaha, nice math there. 8% tax on $599 is $47.92, therefor, it’s $646.92 for the phone, not $640.

    —–

    ~8 and 8 are two different values.

    If Ben calculated with the tax he has where he lives, that would account for the difference.

    Best regards.

  14. segfault, registered cat offender says:

    Can we moderate this story “-1, Misleading?”

    Cingular’s basic monthly plan is $39.99 per month and includes 5,000 night and weekend minutes, which is close enough to “unlimited” as to be a non-issue for the vast majority of subscribers. Also, their SmartPhone Connect unlimited data plan is $19.99 per month. I don’t use text messages and the fact that the iPhone displays them like they’re in iChat probably wouldn’t change that. So, I’m looking at $60/month for the iPhone with data plan compared to $40 per month that I’m paying already.

    I am really tired of seeing all of these posts complaining about the iPhone’s allegedly exorbitant price. Why not just include the 6,000 minute plan at $199.99 per month when making your comparisons? That’ll make the iPhone seem really expensive.

  15. castlecraver says:

    With the iPhone’s abysmal battery life, you’d be lucky to use most of those minutes anyway.

  16. rekoil says:

    The one thing about Cingular’s SmartPhone Connect plan is that there’s one thing you can’t do with it – you cannot use the phone as a cellular modem to get a laptop online. I do this all the time with my Blackberry on T-Mobile’s $20/month BB Unlimited add-on service. Cingular’s equivalent is the Laptop Connect plan, which is $60/month if you have a >$40 voice plan, $80/month if not. Ick.

  17. PsychicPsycho3 says:

    It has wifi, why on earth would you sign up for their junky text and “connect” service? You can just e-mail and get apps, or widgets in this case, to do what you want. Either way I’ll be waiting for a 2nd generation.

  18. helio9000 says:

    According to the Time article you cannot get one without signing up for cellular service.

  19. Grrrrrrr, now with two buns made of bacon. says:

    In all seriousness, there will be a certain number of people for whom the iPhone will be a necessary fashion statement/status symbol, and cost will be of no concern whatsoever.

    There will also be a certain group that can’t afford the phone, but figure being deep in debt is less important than being cool, so they’ll buy it anyway and continue to run up their lifelong debt.

    I think most people will pass on it until it’s reasonably priced and offered on more than one provider’s network (if that ever happens).

    For me, a phone is a phone and not a fashion accessory. All I want my phone to do is dial a number so I can talk to the person on the other end. I really don’t care if it does anything else.

    Even as we speak, Cisco is suing Apple over the iPhone name, so it’ll be interesting to see how that plays out.

    http://blogs.zdnet.com/BTL/?p=4266

  20. jconli1 says:

    or, for the exact same functionality, a T-Mobile Dash for $149, $39/mo for 600 minutes plus free nights and weekends, and unlimited free data.

    (as long as I’ve been with T-Mo – over 4 years now with two smartphones – they’ve never charged me a single dime for GPRS/EDGE data usage)

  21. RumorsDaily says:

    How’d you get free data from T-Mobile? When I inquired about it it was $30/month.

  22. Christopher says:

    Nothing requires that you go with those higher services. Here’s more iPhone math for you:

    - $538 Phone – 4GB version ($499 + ~8% Tax)
    - $40/mo Voice Plan – Still includes 5000 N&W minutes and unlimited mobile-to-mobile
    - $20/mo Data Plan – Still has unlimited data, only 200 texts instead
    - $4.80/mo Fees – (estimated using your 8% “fee rate”)

    Comes to: $1315 for the first year, $778 for the second. Still quite high, but much less misleading than your original post.

    Also, say you get a mid-grade phone, which costs $100, that $60 voice plan mentioned in the original post, & a $5 texting plan. This would still cost you $942 for the phone and one year of service. Everything can sound expensive when you add it up over 12 months.

  23. Anonymously says:

    My phone was free after rebate and my Cingular plan is $40 a month and nearly $9 in fees. That’s $588 a year.

    Damn phone isn’t worth that much to me, now that I think about it.

  24. Xkeeper: “My mother still has one of the old Sprint phones with a black and white screen that had no extra bells and whistles outside of voice messages and one of those old games, and I’ve always wondered if they still sell them…”

    I downgraded to a bottom-of-the-line LG phone that does very little more than that. (It has a calculator. No games, though.) It charges in seriously 15 minutes and the charges lasts more than 5 days and I have ridiculous talk time. Best cell phone I’ve ever owned. $30.

    kenposen: “I still haven’t figured out why camera phones are so cool. I never use my camera.”

    I CAN’T carry a camera phone as they’re verboten in my 10-county court circuit, and it was a PAIN IN THE ASS to find a phone that didn’t have a camera built in. Since there are several major employers (Boeing, Caterpillar) as well as government buildings like court houses that forbid camera phones, WHY WHY WHY is there nothing on the market for those of us who CAN’T HAVE CAMERAS?

  25. ajn007 says:

    I smell a flop.

  26. Charles Duffy says:

    For those who are arguing that lower-end cell plans and phones aren’t *that* much cheaper than the iPhone in combination with the plans Cingular is willing to sell them with — Cricket Wireless has an unlimited voice/data/texting plan for $50/month. Anything not covered by that plan is prepaid, so there’s no way to get sticker shock from the bill. (Also, they don’t require a 2-year contract, or any contract at all for that matter; everything’s completely month-to-month, with a $15 fee every time one initiates service without buying a phone)

    So — switching to an iPhone would require that I agree to a 2-year contract (bah!), give up my unlimited long distance / texting / data / etc. plan, and pay quite a bit more for the services I did get, with a chance of going over and being charged the big bucks.

    They’re very, very cute devices, and I’d love to have one if I could afford it — but the lock-in alone is too high a price.

  27. zl9600 says:

    Neiman Marcus Manolo Blahnak Shoes, cost for one year: $875.

    Payless Shoe Source Faux Leather walkers for one year: $32.50.

    What’s the point here?

    Folks, it’s going to be expensive. And it’s not going to be for everyone. Pretty much the same reason why not everyone has a Treo or a MotoQ.

    Why not add the cost of an iPod in there for someone who does not have one but is considering one? Suddenly the price drops. In fact, it drops to just about the same as all other PDA’s. Yet it’s a product that pretty much made every other cellphone and PDA look 10 years old in one instant.

    I don’t know enough about service plans. All I know is that I’m not going to begrudge anyone who buys something that costs more money than I want to spend.

  28. someToast says:

    In all seriousness, there will be a certain number of people for whom the iPhone will be a necessary fashion statement/status symbol, and cost will be of no concern whatsoever.

    There will also be a certain group that can’t afford the phone, but figure being deep in debt is less important than being cool, so they’ll buy it anyway and continue to run up their lifelong debt.For those of us who don’t give a fig about fashion accessories, but like the iPhone’s UI and feature set… are we allowed to get one?

    Or does an appreciation for design get one lumped into the debt-ridden, cluelessly-cool category?

  29. Amy Alkon says:

    Neiman Marcus Manolo Blahnak Shoes, cost for one year: $875.

    Payless Shoe Source Faux Leather walkers for one year: $32.50.

    Exactly. And, while I buy a lot of my clothes on eBay, cheap, I drink Pellegrino by the case and go to Paris instead of drinking tap water and staying in a Holiday Inn Express in Akron, Ohio.

    An Apple phone is probably too much phone for me, but my boyfriend will get one, and I can’t wait to play with it. It’s not a sign he has questionable character. Nor is the fact that he sometimes waits til the last minute and pays full price for his shoes. You have your priorities…etc.

  30. Grrrrrrr, now with two buns made of bacon. says:

    Oh, alright. You can get one. My omission of a category of people who actually like the design and feature set and don’t mind paying the money for it was an oversight. Cut me some slack…I’m just a blog commentor.

    I wouldn’t pay that much, but if you like the UI and feature set, and it’s worth the money to you, go for it. It’s a free country.

  31. bchains says:

    FROM THE ORIG PIECE..even more of a screw:

    “Sorry brother…. I went into Cingular and inquired about the iPhone… I was told that the iPhone has a special data plan for $49.95 (in addition to voice and text plans)…. and that none of the other data plans which do start @ 39.95 will be offered for the iPhone.”

  32. Stepehn Colbert says:

    I don’t foresee many children carrying this.

  33. objectselect says:

    Show of hands for people sick of so called product reviews from people who have (a) never used an iPhone or (b) bought one…

    How about who actually run OSX?

    Also, why is the price (regardless of what it actually will be) so offensive? Apple states it’s targeting 1% of the market, not most of you. If you’re so bent about the price, keep your phone and your plan, they’re not marketing this for you. Get over it.

    Why don’t we see too many of you blogeeks complaining about the $71,000 price tag of the new Lexus LS?

    Do you all hate Apple’s ability to innovate that much…reminds you of your unrequited love of MS? What is it?

  34. Coronagold says:

    AlteredBeast says:
    “…I’ve take pictures of odd things I have encountered (like the time I was attacked by a family of swans)…//…Also, when I am forced to park next to a jackass who is right on the line (or over), I take a picture of his car parked next to mine. This way if he scratches my car trying to get into his, I have is plate number.”

    Why do I get the feeling I know why those swans attacked you?

  35. judis217 says:

    The voice plan at $39.99 is sufficient for most people. But there is absolutely no way that Cingular will let folks get away with the $19.99 Smartphone plan for this phone. Expect to shell out at least $40/month for the data plan. Did you like that neat iChat-looking demonstration of text messaging? Then add $5/month for the cheapest media plan that includes text messaging, as a data plan does not.

  36. Moff says:

    To me, the worst part is just that you can only store 4 or 8 gigs of music. Even my 20GB iPod doesn’t hold my entire collection, but it’s enough. If I’m going to replace my iPod with something else, it had better be an actual replacement.

  37. Tim Matheson says:

    I think I see a Microsoft phone communing soon. It will most likely have Windows mobile on it and be more Windows friendly. Nothing against Apple, it’s just a personal preference. Has anyone heard gossip about an Microsoft cell phone coming anytime soon? (Are you listening Microsoft?)

  38. Get ready for the Xphone!

    I wonder how long it will take to power on and load the o/s. And are they going to shut off my service if they suspect that I modified my phone? On top of that does that mean I will be charged a cancellation fee?

    Oh the wonders of the Xphone. This could be consumer heaven.

  39. Leighann32 says:

    Well, I guess I will be waiting a while to get this one.

  40. rumurphy says:

    this post is so full of one-sided information.. are you forgetting the fact that most people already have a cellphone plan.. and some a data plan? so its not like they still have to keep their old plan. THEY REPLACE IT! I pay $80 for my cell plan and $60 for my data plan through Verizon. So..

    If as you say.. I will now be paying $100 a month for voice and data vs. $140 a month that I pay now.. then I will be saving $40 a month = $480 the first year. That almost pays for the iPhone!

    Please tell all sides of the story..

  41. Chairman-Meow says:

    WHY WHY WHY is there nothing on the market for those of us who CAN’T HAVE CAMERAS?

    Simple.

    You are not the target demographic for a cellphone. Your typical demographic is 16yrs old with 100% disposible income and a lust for bling’y toys….errr cellphones.

  42. Chairman-Meow says:

    I’ll just wait until the “Cingular changes rates on iphone due to less than expected sales” story before I even think of buying one of these phones.

    You know its coming….just a question of when

  43. I have an old Nokia cellphone which does not have a camera built in. Been using it for some time now. I think the non-folding nokias are built that way.

    Cell phones are conspicuous consumption. Always have been, always will be.

  44. jconli1 says:

    “I think I see a Microsoft phone communing soon”

    Been out for years. Not MS-produced, but MS platform. I hate sounding like a fanboy (or a hater) but the iPhone doesn’t actually do anything new… it just looks cool.

    My HTC/T-Mobile Dash (running Windows Mobile) has Wi-Fi, EDGE, 2MP camera, multiple email acct management, true web, PDFs, Office docs, Google Maps, MP3/Video, 2GB flash storage, blah blah blah. It syncs beautifully with my Mac thanks to a cheap aftermarket application. All for $149 with contract, and T-mo only needs the $6.99/mo data service, despite what they “suggest”.

    Cingular has BlackJack, Verizon has Q. Treos and SymbianOS Nokias are all worth a look, too. They’re all in the same segment, and are way more affordable and flexible (plus have replaceable batteries/SIMs and a huge library of aftermarket apps already available).

    The UI isn’t as slick… and that’s what most Apple buyers buy Apple for. But in terms of functionality and value, go comparison shopping and you’ll be surprised at what’s already out there.

  45. macbigot says:

    Yes, this is an uncomfortable number at first glance — but then, let’s consider what I am paying now, versus what the first three years (the amount of time I estimate someone might hang onto the same phone before finding a need to upgrade) of using an iPhone with Cingular.

    Using the numbers above, the amount for three years ($640 one-time cost for the phone, the rest as recurring costs — an iPhone user will pay $3888.

    For my wife and I, sharing a pool of minutes, pay about $100 a month for our two-phone account with Sprint:

    PCS Free & Clear Plan$50.00 PCS Free & Clear Plan
    Minutes Are Shared On This Plan
    All Minutes Include Free Long Distance700 Anytime Minutes
    Unlimited Night and Weekend Minutes (Nights: M-Th 9PM-7AM Wknd: F 9PM-M 7AM)
    Additional Anytime Minutes $.40 Per Min.

    For three years, that’s $3600 — but keeping in mind that is for two phones, we’ll compare it to Cingular’s plan that adds $10/month for each additional phone (so that my wife wouldn’t have to give up hers just so I can afford an iPhone!). That makes the original three-year iPhone cost of $3888 jump to $4248.

    If I were to add the cost of my simple bare-bones phone ($6 on eBay plus shipping was a total of $19) and my wife’s more state-of-the-art model ($22 with a commitment to keep our plan for two years) that’s $41 for hardware plus the $3600 in service fees. So the final numbers are:

    $3641 = two cheap no-frills phones using Sprint

    $4248 = one iPhone and one cheap no-frills phone on Cingular

    For a difference of:

    $607 = what it would cost to switch my family plan to Cingular and put an iPhone in my pocket.

    That’s for three years, though — meaning a difference of $202 per year, or less than $17 a month — which looks pretty reasonable when considering how much a data plan costs for a Treo or Blackberry user.

    However, we were quite displeased with our Cingular service before we switched to Sprint; so we probably won’t be switching back for a while. Besides, Sprint is nearly done integrating their Nextel/SprintPCS networks — and I anticipate being able to get a PTT (‘push-to-talk’) phone soon that will let me chat with Nextel users and still get free Sprint-to-Sprint minutes between my wife and myself.

    Add to that the unfinished motorcycle I’m trying to rebuild in the garage, and you can bet that $607 is not coming from our walkin’-around-money any time soon.

  46. Mr. Gunn says:

    the iPhone doesn’t actually do anything new

    You hit the source of my irritation about all the press right there. My Nokia 6682 running Symbian(yea!) has had google maps for years now, and I can use tons of other cool third party apps like Opera mini, Gmail, and mobile Office. I can expand the storage of my phone by simply buying another memory card. I can use any data plan I want, and last I checked, my phone is now in the “free with contract” category.

    Why would I want to pay so much more for something that is so crippled?

    I’ll just wait until the “Cingular changes rates on iphone due to less than expected sales” story

    I’m waiting for that story too, but not to buy. Just for the schadenfreude.

  47. Spiny Norman says:

    Just to chime in with jconli1: My Cingular 3125 has a 2 gb microSD card in it which holds enough music to take the tedium out of most waits. The interface isn’t apple but it’s functional enough. I would love to have EDGE and 3G support but I’m hooked on a flip phone form factor. I don’t understand what beyond pure fashion would prompt you to buy a more expensive, less functional device.

  48. Sheik says:

    I’m with the Windows crowd. The iPhone is typical Apple. They put out products that are based on existing technology, stream-line the UI and then over-price it. If you built, or had some one build, a PC to meet the specs of the new Apples it would cost about half as much.

    I do have to say that MS is about as crooked as Apple though, Im no real fan of either.

    They are already working on the second version of the iPhone too. There are always problems with first gen. products, no matter what they are. Buying one now would probably be more trouble than its worth.

  49. gadgetchic says:

    so what if someone wants to pay $1900 for a phone. some people spend $200,000 on cars does that make them a bad person? if you can’t afford one or don’t see the use of having an iPhone, stop bitching and complaining about it…you are not the target demographic.

  50. Sheik says:

    i don’t think anyone here is arguing that your a bad person because you want an iPhone. Relax. This is a blog post about the iPhone being a bit over priced. No one is saying that you shouldn’t buy one for your own reasons, just saying why or why not we think its priced appropriately.

  51. max andrews says:

    I think a lot of people are missing the point. On a cell phone, the interface is EVERYTHING. It’s about the fewest button presses, the best use of screen real estate, the highest legibility of text, and the movement between applications. For people who just want a feature-maxed phone, then the iphone is probably not the best or cheapest solution. But if you want a phone that is rich with usefulo features you could use every day, and that are implemented in a way that is not only accessible but fun, then the iphone could definitely be considered a revolutionary product. Relativity at it’s best, depends on which side you are looking at it from.

    That said, I do think that the cingular lock-in is the worst idea ever. Historically, apple has been so great because they have control over every aspect of the product, from the hardware to the software to the subscriptions (like .mac). I think apple should have become an MVNO with their own plan, or stuck with t-mobile, which has better customer service and better plans than cingular. Plus, most business users are already on t-mobile. Everyone I talked to at macworld said they had no issue paying for the hardware, but they hated cingular and would wait until it was available on other carriers. I hope apple didn’t ink anything longer than a 1-year agreement with cingular!

    In the news next month: Apple breaks contract with cingular due to bad consumer recpetion, eats $250 million early termination fee ;)

    But seriously, I’m not getting out of bed for anything more than $60/month for a combined voice and unlimited data plan. If they want me to switch carriers to anybody but my own, they’re going to need to fellate me with a wet combo of reasonable prices. Also, I’m waiting until the thing has at least 30GB, c’mon apple! Squeeze it in!

  52. Grrrrrrr, now with two buns made of bacon. says:

    I don’t think anyone here is arguing that your a bad person because you want an iPhone.

    Sheik is right. I personally apologize if my post came across as putting somebody down because they want an iPhone. For many of us, we don’t see the cost vs. benefit analysis to show that the iPhone is going to be anything but expensive, making it a no-go for most of us. If you like the iPhone and don’t mind paying for it, buy one and live it up.

    I’m guilty of driving a Volvo and dropping $5 a shot at Starbucks. Likewise, I spent $1500 on an LCD TV. None of those things would be considered economical purchases, especially if anyone ever saw me shop at the grocery story. I’m a bargain hunter if there ever was one. Likewise, I buy clothes and shoes are Target (and occasionally Building 19, so who am I to say someone shouldn’t buy an iPhone. If it makes you happy and you have the money, buy it.

    My theory about finances..cut corners where you can (without screwing yourself, of course), and splurge on the things that really make you happy.

    I just don’t care that much about phones, so I’ll take the cheapest phone you’ve got.

  53. Mr. Gunn says:

    the iphone could definitely be considered a revolutionary product.

    That’s exactly what we’re griping about here. To be revolutionary, they’d have to create something better than 3G, something that does for phones what HD has done for TV. An incremental improvement in voicemail, while nice, doesn’t exactly rise to the level of “revolutionary”. In fact, the iphone is a step back in many ways, with its lack of a card slot and lack of third-party programs.

  54. segfault, registered cat offender says:

    Shiek,

    If you think Apple products cost twice what Windows PCs do, I think you need to spec out a Core 2 Duo Dell and compare the price to an Apple. Apple doesn’t compete in the $399 PC market, so if you’re comparing on the basis of “what’s the cheapest thing I can get out the door,” the Apple will be significantly more, but if you’re comparing on the basis of machines with identical specifications, the prices are the same.

  55. Sheik says:

    I was making the argument that if you built a PC or had someone build a PC with similar specs.If you know where to get good deals on parts, then Apples are about twice as expensive. Of course Dells are going to be more expensive, cause you get that great customer service, cough, cough.

    Now I didnt do too much research, Im at work so here’s a brief run down.

    Apple Mac Pro:
    Two 2.66GHz Dual-Core Intel Xeon “Woodcrest” processors
    1GB memory (667MHz DDR2 fully-buffered DIMM ECC)
    NVIDIA GeForce 7300 GT graphics with 256MB memory
    250GB Serial ATA 3Gb/s 7200-rpm hard drive1
    16x double-layer SuperDrive
    $2,499.00


    PC:
    Dual Xeon Motherboard = $247.63 Shipped
    3.6GHz/800MHz/1MB L2 Cache Xeon Processor = $273.23
    x 2 = 546.46
    1GB, 240-pin DIMM, DDR2 PC2-5300 667MHz ECC = $175.99
    GeForce 7300 GT 256 MB Graphics = $130.00
    250 GB Hard Drive SATA 7200RPM = $144.00
    DVD+/-RW Drive 16X = $115.00
    Case = lets say $150 for a nice one
    Total = $1509.08

    Not quite half price but nearly 1K less

  56. Sheik says:

    PS – When I found a range of prices I used the more expensive in the write up above. There were cheaper prices available. But some of that would make up for my lack of an OS. Unless you use Linux.

  57. AnnC says:

    I’m with you, Sheik.

    Why spend 5 bucks on a sandwich when I can make my own for less than 50 cents?

    I also build my own furniture out of trees I grow from my yard and hooked up my exercise machine to a generator to make make the electricity to power my house.

  58. gmccrorey says:

    Folks.

    It’s a phone, a camera, a web browser (the real web), an mp3 and video player, a mobile email solution, a contact/calendar sync w/your home or office pc, and I hear it even has the ability to seek out and destroy your enemies with lazer beams shot directly from the Apple logo. It is a bad ass device no matter how you chalk it up. And it’s all situated in one small device that you will ALWAYS have with you. BTW I am a totally blue collar, working class dude who just really likes cool technology. Some people spend lots of money on a vacation and when it’s over, all you got are memories. Having this thing will be like being on vacation everytime I have to ride for hours on end in a 24′ box truck (that’s a lot).

  59. billshrink says:

    Hey guys, we built an iphone cost analyzer here at [www.billshrink.com] The giz did a review here
    [gizmodo.com]

    Thanks!