A few articles have been quick to point out that in the long run, the iPhone 3G will actually cost more than the previous iPhone. While that's true, and it's a point we've made here many times, I have a new perspective on the value of the iPhone.
I want to an AT&T store this past weekend with a friend, switching to AT&T, and not waiting for the new iPhone. The salesperson quickly showed us several options, from free phones, to about $200. What did they have in common? None were particularly memorable for starters, and all shared the same cheap plastic feel. Thanks to the RAZR, some models now have solid metal buttons though.
My friend ended up going with the Sony Ericsson Z750a: A flip phone with camera, video recording, 2MP and stereo bluetooth. A few of these features are better/missing on the iPhone (the full bluetooth support, and video for example.) Final cost for the Z750a: $99 after rebate. It struck me that this situation is very similar to the whole PC/Mac debate. while the "pc" phone was half the price, the build, operating system, and interface are far beyond anything else out there. In the Mac world, people are used to paying a premium for the OS, and maybe the cell phone market is catching on as well.
The bottomline is, an extra $99 for the iPhone with significantly greater storage, (Z750 is bundled with a 1GB card) the most hassle-free interface on any phone, and the ability to hold something that actually feels solidly built is well worth the extra money. While many people have compared the iPhone to other phones at the same/greaer price point (like the Voyager), the real market for the phone may very well be people who are considering getting a cheaper phone, realizing for nearly the same price (without rebate) they can have so much more.
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