Howard Chang Info

Since the announcement last week, I have been pondering whether to buy an iPhone3G or not. The sad truth of the matter is, I’ve been waiting for it.

A little over a year ago, I went ahead and bought a Blackberry Pearl + data plans & text messaging. I explicitly sought after a one year contract in anticipation for my next jump on a cellphone. I knew that I just didn’t have it in me to wait 2 years before switching couriers or phones. A few months into my Blackberry usage, I was already contemplating the purchase of an iPhone(2.5G). The allure of a shiny multi-functional phone was overwhelming. I got snapped back to reality when I realized the lack of features and average cellular service. Instead I went out and bought myself an iPod Touch(a.k.a iTouch) instead. It had the same features and capabilities of an iPhone minus the EDGE, Built-in Speakers, and phone functionality.

Just over a months time, my Blackberry contract expired so I anxiously awaited the iPhone3G announcements. I was expecting a slew of new features and upgrades.

• Upgrade in camera resolution. 2.0 MP is sub-standard nowadays compared to all the other Camera Phone manufacturers. Nokia & Samsung both offer up to 5.0 MP.
• Added Video Recording functionality. Why have a camera when you can’t record? The new iPhone3G does not have this functionality explicitly listed, however if companies like Qik are jumping on the bandwagon of third-party developers, you can safely assume that a recording function will be added, but at a cost to consumers. I’m anticipating $9-$20 for this feature.
• AM/FM radio. Sure, the new hype is satellite or high-def radio. But I still occasionally use the radio in my car, why can’t Apple just add it to its product line? Granted this is wishful thinking since Apple has never clearly stated that it would add such a functionality. But again, I’m pretty certain some headset makers will cash in on this option.
• Memory slots, yet another case of wishful thinking but honestly, is it so bad to allow consumers to add some memory to your devices? Certainly, Apple has a lot to gain by limiting iPhone & iTouch memory but then again, if an iPod touch can reach 32GBs’ why not the new iPhone? One can argue that the 32GB models are two separate 16GB drives in one but I’m pretty certain iPhone users are willing to accept a slightly clunkier device given more memory was added.
• Flash support. While YouTube is currently available on the iPhone & iTouch, the videos are utilizing a special blend of codec compression. This means sites with flash are still not viewable on the new iPhone3G. Video sites like break.com or collegehumor.com are still playable.

Those are a few core features I was hoping to see in the new iPhone3G but have not come to fruition. Sure they are valid reasons and if it wasn’t for one other determining factor, I’d go ahead right now and pitch a tent up at an AT&T or Apple store.

Final dilemma…

Apple & AT&T went into a 5 year long partnership. With the first gen iPhone2.5G, AT&T provided a data & voice package exclusively for Apple that cost its users (presumably $30 voice + $30 data)$60 a month + taxes and gibberish fees’.

Now that AT&T has subsidized an agreement with Apple, it has basically begun it’s phasing out process for the iPhone plan and moving the new iPhone3G owners to the basic data rates(which have gone up to $30). This means that the lowest possible monthly fee for using an iPhone3G will be ($30 data + $40 voice)$70+tax & gibberish fees’ coming to a grand total of $80+ a month. As a consumer, I don’t know if I can justify $80+ per month for faster internet and enhanced GPS. There’s even speculation that the new plan will not include the 200 text messages that the previous plan had provided.

Essentially, what has happened is that AT&T decided it will cover the additional cost of an actual iPhone3G. Insiders are privy to the fact that an iPhone3G does not actually cost only $199 or $299, the real price is somewhere around $400+ prospectively per model. But because AT&T is covering the extra expenses, the consumers will be paying for it in the long run by way of a two year locked-in contract & a steady flow of $80+ monthly bills.

As much as I like the iPhone3G and am still considering one. The $80 monthly fees for upkeep and $299(I want the white one, and it only comes in 16GB models) for the iPhone3G appears to be a bit steep. With the economy in the state that it is in & gas prices going up. I have to consider the necessities before the non-necessities come into play.

Will I buy an iPhone3G? Perhaps, but I’m sure as hell not going to camp(the iPhone requires activation in stores only, no iTunes self-activation anymore. Guess they’re trying to combat jailbreakers) in line for it.

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