Keep the iPhone you already have - here's why. I had an interesting "iPhone 3G debate" over drinks this evening with a passionate, but less than thrilled, iPhone user. I'll call him "Don". Don, like every other iPhone owner, was debating whether to upgrade to the new iPhone 3G or stick with the iPhone he already had. Don's verdict? Keep the current iPhone. The reason? Freedom of choice of cell phone carriers, and iPhone 2.0 software works fine on his existing iPhone.
What you say? Freedom of choice for which carrier to use with the iPhone? Yes. Don balked at the high cost of AT&T's broadband data plan (for the EDGE network) and had opted to unlock his iPhone and use a cheaper (and slower) data plan from T-Mobile. Don purchased his iPhone over the Web and immediately unlocked it and got service with T-Mobile rather than the more expensive AT&T service.
So, why not get the iPhone 3G and do the same thing? AT&T requires that you purchase a two-year plan from it at the same time you buy an iPhone 3G. Only someone rich enough to throw away a few thousand dollars would get the iPhone 3G and a two-year AT&T plan, unlock it, and then pay another carrier again for what they already paid for at AT&T. That's the behavior AT&T and Apple are of course discouraging. AT&T wireless seems to be taking a page right out of Apple's lock-in strategy. Too bad, because at least in this one case (and likely many, many others), existing customers are faced with signing up for another two-year stint with AT&T. Not providing a choice of carriers will continue to torque wanna be iPhone users. But wait, there's more.
Apple's limited hardware improvements and the 2.0 iPhone software upgrade may both be strong deterrents and cause users to stick with their current iPhones. Why?
To begin with, the iPhone 3G only brings three significant hardware benefits: 1) 3G capabilities (faster data downloads, more international networks), 2) built-in GPS, and 3) increased storage capacity. The first two are very valid reasons to go out and get a new iPhone 3G, provided you need those capabilities. The third, more storage, isn't as big an issue yet, at least until downloadable iPhone apps become available and start to gobble up storage capacity. Barring a need for any one or a combination of these three hardware upgrades, there's no significant hardware benefits to the new iPhone 3G. The original iPhone's more than adequate for doing basic e-mail and Web page downloads, and running soon to be released iPhone apps through the App Store.
That, along with being able to upgrade to the iPhone 2.0 software, users get the much needed Exchange integration, improvements to Contacts search, Office and iWorks document viewing, remote wipe and other new 2.0 software benefits. So unless you really need one of those hardware benefits, most iPhone users will be just as happy to stay with what they've got. Apple's goal of 10 million iPhones sold this year could be in serious jeopardy unless price reductions, 3G and more storage drive are enough to drive large numbers of iPhone sales.
So unless you get your jollies over giving Apple more of your hard earned money, you might just be better off sticking with your current iPhone.
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Mitchell Ashley is principal consultant at Converging Network LLC where he provides product, technology and social media consulting to emerging technology companies. A successful CTO and product innovator, Mitchell has created many successful, award winning products in the networking, security, convergence, Internet and IT industries. In addition to blogging for NetworkWorld, Mitchell regularly blogs at TheConvergingNetwork and co-hosts the widely popular StillSecure After All These Years podcast.
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UK Price Plans
I'm amazed at this, in the UK (i already have an iPhone) we can upgrade to the new iPhone for FREE on certain tariffs, and the tariffs available are similar to what is available on other carriers.
Freedom of choice of cell phone carriers?
So if you live in the U.S., your only other option is T-Mobile. And, if jailbroken, your iPhone warranty is void. Doesn't seem like a great choice considering they have the exact same coverage, similar pricing plans, and you won't get visual voicemail. The only way you could save money would be to get a cheaper/slower (or no) data plan on T-Mobile.
Also, you say that the new iPhone offers more storage, but it is the same as the first gen (8GB or 16GB). Another hardware upgrade you forgot to mention is the flush headphone jack. I'm not sure what else you got wrong, but I would be hesitant to take any advice from you about the iPhone.
Other facts about AT&T and Apple
Switching to iPhone 3G will not add 2 years to your contract. The total of the original and new contract is 2 years. Of course, if you broke the phone and used it on another network, you will have two years left.
In addition, it would cost thousands more given that you would have two plans. However, if you just used one plan it would not be thousands more since the entire contract costs $1700 over two years.
This editorial asserts information based on incorrect information based on assumptions.
Hopelessly tunnel-visioned
The only way this article makes even the vaguest sense if you assume that most iPhone 3G buyers are supposed to be people who bought the original iPhone. The author gives no reason to believe this, and in fact it's very unlikely that such is the case.
I know of at least half a dozen people, personally, who do not have an iPhone and were waiting for the next release, and plan on getting it. Furthermore, from Apple's perspective, even if the US market is completely saturated with current iPhone users (again, why do we believe this?) the iPhone will be opening in dozens of new markets, which the 3G upgrade allowed.
Tell "Don" (and yourself) to get a broader view of the phone outside of ourselves.
Hopelessly tunnel-visioned
Chris, right on. I am one of those people who are holding out for the software to make it exchange compatible. I already have a windows mobile device that is horrible. The beauty of the IPhone is that applications work with each other elegantly.
The cost of the IPhone will be less than I originally paid for the Windows Mobile device and the data plan that I have with AT&T will be a little cheaper. While I like the new hardware features of the 3G model, the reason I will be getting the I phone is that I can use it for my corporate email.
Apple is not targeting the device at the current users, it is targeting the device at all of the people who have been waiting. They need to get millions more onto the device so they are more than just a niche phone product.
I agree that Don needs to look to more than the current base.
tunnel vision? how about missing the point of the article?
The title of the post is addressing the 2.0 Upgrade not new users. There are some legit reasons for keeping the iPhone as this points out. But I disagree that its a bad decision (backfire) for apple to keep current iPhone users happy as they will happily move to future 3G releases w/more memory, etc shortly down the road. Give Don a break, he probably had a few drinks.
Wait for my ship to come in
I'm a Verizon customer. AT&T's coverage in Rochester is terrible. I'm angry that I cannot buy an iPhone for Verizon. I guess I should be angry at Verizon for turning down the deal. But I'm angry with Apple for granting exclusive rights to anyone. We're supposed to be a country of freedom of choice. I have a choice to use the iPhone, but I have to change carriers... That's not cool. Think I'll switch to Sprint.
ATT says 2 year contract is required
Per ATT's actual memo to stores, all sales of iPhone 3Gs will require a 2-year contract:
All customers will be required to sign a 2-year agreement. There will not be a "no commitment" price for the iPhone 3G.
The memo does not indicate any exceptions for existing iPhone owners on ATTs plan. It would only make sense ATT would require renewing the term of the cell phone contract.
Mitchell Ashley
Converging Network, LLC
Personal blog: http://theconvergingnetwork.com
Personal podcast: http://www.clickcaster.com/ss
2-year contract total, not additional
This issue was already settled on Monday:
http://arstechnica.com/journals/apple.ars/2008/06/09/att-remains-sole-iphone-carrier-in-us-revenue-sharing-axed
"We have received further confirmation from AT&T on these details. AT&T spokesperson Brad Mays told us that the May 27 deal applies to iPhones bought from both Apple Stores and AT&T, and that the new 2-year contract replaces your previous contract. So, if you recently signed a 2-year contract (as I did, in January), you don't have to commit to two more years for a total of four. You only have to sign a brand new 2-year contract."
ATT contract renews for 2 years from date of purchase
Agreed, Chris - that is my understanding as well. You'll be required to sign a 2-year contract with ATT starting from the date of purchase of a new iPhone. The 2-year period doesn't stack on top of an existing contract, it escentially replaces it, restarting the 2 year period from the day you purchase a new iPhone 3G. That's pretty standard practice for cell phone carriers.
Thanks for jumping in to clarify that.
Mitchell Ashley
Converging Network, LLC
Personal blog: http://theconvergingnetwork.com
Personal podcast: http://www.clickcaster.com/ss
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