Comparing apples to apples: two year smartphone cost examined
Over the past few month, we’ve seen several sites run cost comparisons on the latest and greatest smartphones from each of the top four carriers in the US. Good — presenting readers with cost analysis is always a good idea. We’re finding that just about all of these comparisons do so on the high end of the spectrum however, comparing the cost of owning each of these great smartphones along with the most expensive plans available from their respective carrier. Fair enough, we suppose. The simple fact of the matter is that not everyone is interested in an expensive unlimited plan though. For these people, comparing the maximum possible cost of several smartphones definitely makes for an exciting read, but we don’t know how useful it really is.
Unlimited plans continue to gain popularity as cost is driven down but the fact of the matter is that they’re just not for everyone. As such, rather than compare the highest possible cost of four popular smartphones maybe it makes a bit more sense to compare their relative entry-level costs — the base price, where most comparisons happen. Yeah, let’s give that a shot…

T-Mobile G1
Handset: $149.99
Monthly cost [UPDATED]: $29.99 voice plan (300 minutes, unlimited weekends), $24.99 T-Mobile G1 Unlimited Web (unlimited Web/email/data)
$54.98/month — $1,319.52 over 2 years + $149.99 for the phone
Total: $1,469.51 (excludes SMS/MMS, starting at $5/month)

Sprint, Palm Pre
Handset: $199.99 (after $100 rebate)
Activation fee: $36
Monthly cost [UPDATED]: $69.99 Everything Data Plan (450 minutes, unlimited nights/weekends, unlimited mobile to mobile, unlimited Web/email/data, unlimited SMS/MMS, unlimited GPS navigation)
$69.99/month — $1,679.76 over 2 years + $235.99 for the phone plus activation (after $100 mail-in rebate)
Total: $1,915.75 (after $100 mail-in rebate)

Verizon Wireless, BlackBerry Storm
Handset: $149.99
Activation fee: $35
Monthly cost: $39.99 voice plan (450 minutes, unlimited nights/weekends, unlimited mobile to mobile), $29.99 Email and Web for BlackBerry (BIS, Web)
$69.98/month — $1,679.52 over 2 years (excluding SMS/MMS) + $184.99 for the phone plus activation
Total: $1,864.51 (excludes SMS/MMS, starting at $5/month)

AT&T, Apple iPhone 3GS 16GB
Handset : $199
Activation fee: $36
Monthly cost: $39.99 Nation 450 w/Rollover (450 minutes, 5000 night/weekend minutes, unlimited mobile to mobile), $30 Data Plan for iPhone (unlimited Web/email/data)
$69.99/month — $1,679.76 over 2 years + $235 for the phone plus activation
Total: $1,914.76 (excludes SMS/MMS, starting at $5/month)
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So what have we learned here? Look at your potential purchases from your own unique perspective. Wireless plans are complicated and should not be handled on an even playing field; each carrier has similarly priced plan options that feature both high and low points. For example, the bare-bones entry plan for the G1 reduces the two-year cost of the handset dramatically compared to the three other handseys but it only affords the user 300 minutes each month and doesn’t include free nights as other plans do. It’s all about give and take. Most importantly perhaps, don’t go to an AT&T/Sprint/T-Mobile/Verizon Wireless shop and expect to get help that is in your best interest. Don’t take media or a blogger’s word for it wither. Determine what matters most to you — whether it’s more minutes, unlimited messaging, etc — and do your own research with those things in mind. An educated consumer is a happy consumer.




I know what an exciting read is, but what is an exiting read?
i’m still screwing AT&T every month for $15 by using my original iPhone sim card. I have yet to be charged for ANY 3G use. I bought my iPhone 3G outright on ebay and just bought my 3GS outright on ebay, both for under $200.
I agree that things are a bit different when comparing the low cost end of the spectrum, but it’s not comparing apples to apples when two carriers include the unlimited sms/mms and the other two don’t. Of course this is mentioned in the article, but the title is misleading.
cool I totally want an iphone without any messaging plan
How do you get a 3G and 3GS for under 200 that doesnt make sense.
Is there an error for VZW or have they changed they’re basic plan from 450 to 400 minutes?
Good article for side-by-side comparison, by the way.
@JakeyBoy
how did you get the 3gs for under 200 when it’s going for 700?
For T-Mobile you have 2 options at that price point: 300mins weekends/nights myfaves (like you stated) or 600mins weekends/nights. I personally don’t use myfaves so I’d go with the 600min option.
Thanks BGR,i was wondering about this just yesterday. It seems my iPhone plan isn’t that bad after all. Kinda surprised that the G1 is the most expensive though.
Posted from BGR Mobile (iPhone) at: Atlanta United States
or tell us how to get your $200 iphone 3gs. Does it involve a Nigerian fortune that requires my bank details?
The Sprint data plan also includes GPS
So if the plans for both the Storm and the iPhone do not include messaging in the price, why would you compare them to the G1 where unlimited messaging is included in the price? That makes the G1 appear to be more expensive than it actually is. Also, T-Mobile offers a different messaging plan for the G1 which is $24.99 in which you get unlimited data still, but instead of unlimited SMS/MMS, you get 400 SMS/MMS. When you factor that into the equation, the G1 is $10 less per month, and $120 less per year, AND it still has some form of a messaging bundle unlike the Storm and the iPhone plans being shown here.
I’m not accusing you of bias as much as I am of just using common sense. If you were to add unlimited messaging to both ATT/VZW the G1 would be the second least expensive behind the Pre.
What?
So you compare T-Mobile and Sprint with SMS/MMS to ATT/Verizon with no SMS/MMS.
You need to add unlimited texting to ATT and Verizon and that’ll be at least another $20/month, or $480 over the course of the plans.
Very nice comparison…now try a similar one for Canada. Try a west vs east. Like in Calgary, AB. vs Toronto,ON. I think people would choke on their coffee if they saw the plans we have and costs.
I know in the west (Calgary), out special one time ‘deal’ data plans for 5 or 6 Gb data is $30 alone. God forbid if you don’t get a ’special’ deal plan. As for unlimited minutes….not gonna happen.
Wouldn’t a more balanced comparison be to use the $24.99 unlimited data plan for the G1 and then add on the $5 messaging pack? That would be more comparable to the plans you have chosen from Verizon and AT&T.
The verizon cost excludes sms and mms. It is not clear if the AT&T plans includes or excludes sms and mms. To make it apples to apples include the min for sms and mms on verizon and verify for at&t.
Except you can get a $25 plan for the G1 with 400 SMS. bringing total g1 cost to ~$1732.99.
None of the other smartphone plans listed have a myfaves-style tool, either. So to compare apples-apples, the 300min individual is $29.99. Total cost of $1493.51.
Remember, we were looking at base-price, not fancy ‘myfaves’ options.
@Jakeyboy, can unlocked smartphone (e.g:Nokia N97) use $15 dataplan? I’m thinking about buying it, but not sure if $ 15 plan will work like the $ 30 plan, I asked At&T and they say it won’t. Sounds like you’re able to do it.
to be sure, SMS/MMS is a must for every smart phone owner. so basically, every1 charges the same.
thanks for that. its important to know that info beforehand. but whats up with CRICKET, BOOST, METROPCS, US CELULLAR ? i guess there is a reason people go with the big four. while there is certainly a debate who is better of those four, but even the weakling amongst them is far superior then the small four. (-at least until they grow to become ‘major leugue’)
This is completely rigged. The Pre and G1 include unlimited messaging, the Iphone and Storm don’t.
If that was factored in, Verizon and AT&T would be much more expensive. Instead this shows nothing.
So add $15 x 2 = 360 ontop of the Iphone and Storm’s price.
So the real equivalent is:
$1,897.75 Pre
$1,949.51 G1
$2,189.51 Storm
$2,274.76 Iphone
I’m with the others calling inane bullshit on Jakey’s comments. AT&T’s service just doesn’t work like that. They track the device’s IMEI number, not the SIM inside of it. The SIM just tells them what account to bill it to. If they haven’t yet nailed it down, they will soon enough. And when they do, it’s going to be bad news for you, because what you’re doing is a violation of the terms of service you agreed to when you signed up for your AT&T contract.
And no offense, but a quick check of eBay just doesn’t show ANY 3GS units for much under six hundred dollars. Not to mention there’s no unlock for the device as of yet (technically, the just-achieved jailbreak isn’t even available for the device yet.) Next time you want to out-and-out lie on a comment page, at least make it somewhat credible.
This obviously depends on a lot of variables because I have the T-mobile loyalty plan so I get unlimited everything (Minutes,Data & SMS/MMS) for about $75 a month with a G1. If I was to jump over to AT&T to get an iPhone with unlimited everything it’s about $140 a month. That’s a huge difference.
T-Mobile has a $29.99 voice plan and $24.99 data plan as well, which shaves $480 off over 2 years, so it doesn’t seem like a fair comparison unless you are trying to make AT&T look good.
JLO: the author clearly states that the AT&T plan does not include SMS/MMS in the cited cost. And I agree with the others– it’s really only fair to include those costs when comparing price… simply mentioning that they’re not included is a bit lacking. It wouldn’t take much to make an addendum to the article.
This comparison is flawed and irrelevant. The proper comparison should be: Compare plans that cover unlimted calling, unlimited SMS, unlimited email, and unlimited web surfing and other applications. Unlimited-everything, in other words. AT&T and Verizon are $150/month, T-Mobile anywhere between $85 and $140 depending on the plan for which you qualify, Sprint $100, and MetroPCS by far the cheapest at $50. Those are some very big percentage differences.