iPhone Prices and Competition
| Apple iPhone vs. Cisco iPhone When Apple announced the iPhone in January 2007, it quickly got the attention of computer technology company Cisco. Cisco was already using the iPhone name on a range of VoIP products and services. Cisco filed a lawsuit, but the two companies eventually reached an agreement with undisclosed terms in February 2007. The agreement allows both companies to use the iPhone name. |
The iPhone has gotten a lot of attention in the press, but other phone models already have similar features. Several phones now run on Android, the mobile operating system designed by Google. The Palm Pre is the first phone to use Palm's new OS called WebOS. Numerous smartphones have a built-in Opera Web browser designed for mobile devices. Although most other phones don't have completely virtual controls, some, like the Helio Ocean, have multiple physical keyboards. You can slide the front portion of the Ocean vertically to access a number pad or horizontally to access a QWERTY keyboard. The orientation of the images on the screen changes depending on which keyboard you are using. Other phones, like the Samsung Instinct, the LG Prada and the HTC Touch phone, use touch-screens and virtual controls much the way the iPhone does.
In some cases, Apple's iPhone received more attention for what it couldn't do than its wide range of features. Until June 2009, the iPhone was incapable of using cut and paste. And then, on Sept. 25, 2009, Apple rolled out multimedia message (MMS) support to its users. You can find both of these features on other phones -- MMS is common even on regular cell phones. Why did it take so long for Apple to support these basic features? There's no clear answer, though one theory is that because iPhone owners utilize their data plans more than the average smartphone user they make a significant impact on their carrier's network. As the iPhone gets more features, it puts a heavier strain on the network. It's possible that Apple is working with its carriers to avoid overloading networks with increased traffic.
 Image courtesy © 2007 High Tech Computer Corp. |
At its introduction, the iPhone's price was $499 for 4 GB of storage space and $599 for 8 GB. In September 2007, Apple announced that it was lowering the price of the 8 GB model to $399 and that it would continue to sell the 4 GB model while supplies lasted. The 3G iPhone came with another drop in price: The 8 GB 3G iPhone became available for $199. Apple was able to discount the phone because phone service providers like AT&T subsidized the hardware.
The introduction of the iPhone 3GS ushered in another price cut. Now the only model of the iPhone 3G available in Apple stores is the 8 GB black phone for $99. The 16 GB iPhone 3GS is $199 while the 32 GB model is $299.
In the United States, the iPhone requires a two-year contract with AT&T, formerly known as Cingular. Unless you hack your iPhone and unlock it, it won't work at all without the AT&T plan. AT&T packages include a required data plan ($30 per month as of September 2009) that you must subscribe to and can never remove even if you decide to just use the iPhone as a normal cell phone.
The first iPhone hit the U.S. market on June 29, 2007. In the days after the release, users and reviewers criticized some of the iPhone's features, including slow browsing speeds and difficulty using the virtual keyboard. Customers reported difficulties with the lengthy activation process and itemized paper billing statements that were hundreds of pages long. Consumer-rights advocates criticized the cost of the iPhone's battery replacement program. Early iPhone adopters were also angry at the dramatic price increase -- Apple responded by offering a $100 store credit [source: Apple]. In spite of all these difficulties, Apple sold its millionth iPhone in September 2007.
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