Yes, the iPhone plan is tied to the SIM card, which can be inserted into other phones bought contract free at an independent retailer or one of two Nokia stores in the country. Just remember, having multiple phones is NOT a standard use case in the U.S. So for most people, AT&T is charging $20/month for EDGE data with the original, and $30/month for 3G data with the new one. I agree with David – that’s a fair (if pricey) upgrade. Faster is better, so you pay more, which passes the common sense test. Where the logic falls apart is for users who live in areas outside of AT&T’s 3G coverage; then it’s just an extra $10 for nothing (though I suppose if you’re feeling generous you could consider it a finance plan that covers the subsidy). There’s no way to rationalize the lack of SMS, though.

-avi

Ricky, with all due respect, I think you’re missing my primary point. I’m not arguing that the iPhone does or does not make mobile internet ‘more fun’ or ‘more accessible.’ I’m making a point about these so-called “hidden costs.” I’m saying that they’re not hidden at all. They are amortized over two years.

My G1 iPhone cost me $500 (after a $100 gift card rebate.) The new phone will cost less money up front, only $200.00. The balance (and then some) will be paid back over time through contractual obligations. Over the lifespan of that two year contract, I have to pay a little more for my phone and phone usage. And it is my steadfast opinion that I will consume *significantly* more data using the newer phone than I would have with the old phone. That’s it.

I agree with you (and with Dave Zatz)that AT&T is overcharging. I would prefer they charged less. I think it’s particularly outrageous that they’re charging so much for text messages.

All that being said, I drink the iPhone kool-aid. I don’t mind paying their price to use the device. I have a whole bunch of gripes (again agreeing with one of Dave’s points here) about features they chose not to include, and there may be a future post complaining about those quite soon. But I stand by my post, that these costs are not hidden at all, and are for the most appropriate. Of course, I completely respect your right to disagree and believe I’m a moron.

Cheers guys.

David

Regarding “hidden costs” Apple is also saving a few bucks by not including a dock with the new model – it’s $30 extra.

(I’m keeping my v1 model – works fine and the new hardware isn’t compelling enough to upgrade. If they had included a higher megapixel camera, I might have made the leap.)