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iPhone Prices

Phil Harvey

2:30 PM -- From AT&T PR, here's the line on what the iPhone will cost out of pocket, should you be one of the few million people getting one this weekend:

Pricing & Availability
iPhone goes on sale at 6:00 pm (local time) on Friday, June 29 and will be sold in the U.S. through Apple's retail and online stores and AT&T retail stores. iPhone will be available in a 4GB model for $499 (US) and an 8GB model for $599 (US), and will work with either a PC or Mac. All iPhone monthly service plans are available for individuals and families and are based on a two-year service agreement with AT&T. Individual plans are priced at 59.99 for 450 minutes, $79.99 for 900 minutes and $99.99 for 1,350 minutes. Other plans are available as well. All plans include unlimited data (email and web), Visual Voicemail, 200 SMS text messages, roll over minutes and unlimited mobile-to-mobile and a one-time activation fee of $36.
So if you go with the 4-Gig model and the cheapest plan, that's $580, plus tax and fees, up front before you turn the thing on. Let's add another $100, assuming you'll also want a carrying case, some cables, and a new Bluetooth headset so you can drive around without killing anyone.

What are we up to, $780?

Oh, there's an activation fee? Tack on $36. So that's $816 for the first month and about $660 for the next 11 months of service. Two-year minimum contracts? Okay, make it $816 plus $1,380 for about two years of service, assuming prices don't jump and you don't go nuts with texting or anything...

You're looking at a committment of $2,200 for a cool new phone.

And you can't put a price on cool.

— Phil Harvey, Barely Managing Editor, Light Reading

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