How Much Does the iPhone 3GS Cost?

When Apple released the iPhone, a frenzy erupted amongst the public. Millions of people started to pine over owning the cell phone that took pictures, sent text messages, played music, had visual voicemail, and offered Internet services for web browsing, email, and wi-fi connectivity. The capabilities of the phone became the stuff of legend and have earned the iPhone the honors of being one of the most talked-about of smartphones.


Introducing the iPhone

AT&T is the chosen service provider for the iPhone 3GS. Product highlights include:

• 16 GB storage capacity for the iPhone 4 with higher capacity versions available
• A 3.0 megapixel camera with video recording and editing
• Wi-fi enabled
• GPS with turn-by-turn direction and digital compass

The Cost of the iPhone

When purchasing an iPhone from Apple (excluding the data plan from AT&T), the costs for the phone include [1]:

• iPhone 3G (8 GB) – from $99
• iPhone 4 (16 GB) – from $199
• iPhone 4 (32 GB) – from $299

The average cost for an iPhone without a contract is $599.

The average cost for a used iPhone without a contract on eBay is $300 locked and $350 unlocked. Prices can reach up to an average of $600 with newer, loaded models in the $1,000 range.

Applications for the iPhone are purchased through a free account on iTunes App Store. While some apps are free, the average cost for a paid iPhone app is around $2.

iPhone Usage Plans

AT&T offers the following usage plans for the iPhone:

• Unlimited voice, messaging and data: $149.99 [2]
• 450 minutes, unlimited messaging and data: $89.99

Cost of iPhone Accessories

Apple and AT&T sell many different accessories to complement the iPhone, including:

• AppleCare Protection Plan – $69
• Apple USB Power Adapter – $29
• Apple Remote – $19
• Apple iPhone 4 Bumper – $29
• Apple Component AV Cable – $49
• Incase Snap Case for iPhone 4 –$34.95
• Apple iPhone 4 Dock – $29
• AT&T Screen Protector – $7.50
• AT&T Soft Touch Stylus – $14.99
• AT&T USB Charging Cable – $18

Unlocked iPhones vs. Locked iPhones

The iPhone can be purchased on the Internet or from a former user as an unlocked phone. Apple does not sell the phone unlocked because they want to dictate the type of service associated with the phone. A locked phone will only recognize a SIM (Subscriber Identification Module) card or microchip associated with Apple’s chosen service carrier. An unlocked phone will work with a SIM card from any carrier, which is why it typically costs more to purchase an unlocked iPhone.

Sources:

[1] http://store.apple.com/us/browse/home/shop_iphone/family/iphone?aid=AIC-WWW-NAUS-K2-BUYNOW-IPHONE-INDEX
[2] http://www.billshrink.com/blog/6847/nexus-one-vs-iphone-droid-palm-pre-total-cost-of-ownership/

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