When the iPhone was first previewed back in January, competitors without much ammunition with there own “smartphones” screamed that that cost of the iPhone was excessive. Steve Ballmer of Microsoft was especially very vocal, claiming that the iPhone was waaaay to expensive to be successful. He compared the Motorola Q to the iPhone and claimed that Apple’s iPhone will be the most expensive phone ever. I remember what was paid for the Samsung i730 with plan cost that I have, and that Microsoft powered smartphone was pretty pricey, so I had no idea what Ballmer was talking about! Not to mention all its limitations. I hate this phone.

Well after AT&T service plans for the iPhone were recently announced it is interesting to see that the iPhone is actually cheaper than the Motorola Q phone! Ballmer compared the $500 iPhone back in January to the simple Motorola Q, which was on sale for $99 at the time. What he didn’t say was that the Q was only offered at that price when users signed up for an $80/month contract over two years, a $1920 commitment plus $99 making the cost of ownership $2019!

Verizon now sells the Motorola Q for $150, not the special $99 price Ballmer spoke about that was a sale price that was only good six months ago. This brings the cost to $2070!

The Motorola Q with its minimum two year contract is $150 + $1920 = $2070.
The Apple iPhone with its minimum two year contract is $499 + $1416 = $1915.

This makes the Windows Mobile Q over $155 more than the Apple iPhone! The Motorola Q is in no way the same league as the iPhone mind you. iPhone has the best web browser on any mobile device, is the best iPod Apple has ever made, has “visual” voicemail, has great email, WiFi, Buetooth, dazzingly Google Maps with directions, and YouTube videos. But the Motorola Q Ballmer compared it to, costs MORE! The Motorola Q is does not even have a touch screen. Although, you can get a “black” Q phone for $30 more.

A Palm Treo 700wx Smartphone that runs Windows Mobile will set you back $300 (after rebate) plus $80/month service plan. Verizon Wireless XV6700 also runs Windows Mobile and costs $300 plus service plan. The BlackBerry 8703e or BlackBerry 7130e will cost you $150 (after rebates) plus $80/month service plan making all these MORE expensive to own than the Apple iPhone also.

The Samsung i730 I have, cost $499 when purchased last year plus the service plan. This is much more expensive than the iPhone and I still carry an iPod!

So to set the record straight, the iPhone is NOT the most expensive mobile phone. The “Total Cost of Ownership” is what matters. Many of these other smartphones not not even have WiFi, making them “NOT So Smart” after all!

Next question from the critics. Is the iPhone keyboard and good?

Note: The iPhone was criticized by Ballmer about its virtual software keyboard. I hate the keyboard on my Samsung i730 and paid to add software for an on-screen keyboard. So the iPhone keyboard looks OK to me (I have not tried it yet, of course). Apple has just posted a video featuring the iPhone keyboard. See it here.

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