Apple's (AAPL) iPhone will carry a $499 to $599 pricetag, not including taxes, depending whether you choose the 4 gigabyte or the 8 gigabyte model.
But that's not how much it will cost to own one. With five days to go before the device goes on sale, AT&T has still not published the rate card for its iPhone service plans or indicated whether there will be any rebate on the hardware. We do know how much AT&T charges BlackBerry users, however: between $34.99 and $79.99 per month for data and anywhere from $39.99 to $99.99 per month for voice.
Choosing the entry-level iPhone (assuming no rebate) and the lowest possible price for a two-year contract, this is what we get:
iPhone (4 gig model): $499.00 plus tax AT&T voice 450 minutes/mos. 879.36 AT&T data 839.76 TOTAL (2 years): $2,218.12 plus tax
That's not counting Apple's Bluetooth headset (reported cost: $129) or any protective covering you might buy to keep from scratching the glass screen.
And if you decide before your two-years are up that the iPhone -- or AT&T -- is not for you, the Boston Globe reports that the company formerly known as Cingular will charge you a $175 early cancellation fee. (link)
Cellphone service providers routinely charge their early-cancellation fees to recoup the cost of subsidizing the phones, which they sell way below cost when you sign a two-year contract. It's not clear how AT&T can justify a cancellation fee on a phone it hasn't subsidized. With the iPhone, it would appear, the old rules don't apply.
CLARIFICATION: This is not meant to suggest that the iPhone/AT&T costs are uncompetitive. As several readers point out, you are going to get hit with monthly charges no matter what phone or carrier you use.
News 
Market Data 
Discover 
AI
