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Home / Technology

'Cheap' iPhone has costly catch

Alanah Eriksen
By Alanah Eriksen, Alanah May Eriksen
Managing Editor - Live News·NZ Herald·
8 Jul, 2008 05:00 PM5 mins to read

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KEY POINTS:

A new iPhone might only cost you $199 to buy but expect to fork out $6000 in the long run when you sign up for a two-year plan.

Consumers were outraged yesterday when Vodafone announced its pricing plans for the Apple iPhone 3G, which goes on sale after midnight tomorrow.

Bloggers last night discussed holding a protest at Vodafone stores and two petitions against the pricing were started online.

Vodafone's website went down for about two hours while Kiwis clamoured to get information on the phone.

To buy the device outright costs $979 (8GB version) and $1129 (16GB), and it can then fit in with an existing account by adding a data plan.

Buying an iPhone on a two-year contract is possible on three different data plans, with the 250MB package costing $80 per month with the two versions priced at $549 and $699 respectively.

The most expensive monthly option comes with the lowest entry price - $199 for an 8GB iPhone, but a massive $250 per month with 1GB of data on a two-year plan.

Vodafone's other major smartphone, the Blackberry, comes in three models that are available on two-year plans. Priced at $899, the phones cost $35 a month for 10MB or $45 a month for 100MB. Calling and texting plans are added and are about $60 a month.

Vodafone also has a Nokia N95 (8GB) which costs $1400 and can have a data plan similar to the iPhone added.

A Blackberry from Telecom costs about $999 and data plans range from $34.99 to $79.99 a month.

Telecom's Okta Touch (128MB) costs $799 if you buy it outright, or $529 for a two-year contract and is available on a variety of data plans.

Spokesman Kursten Shalfoon told the Herald Vodafone had more than 70 different phones and plans at any one time.

"The iPhone is a great phone, it's not for everyone but there are a lot of people that are very excited about it. It's very hard to compare all the different phones because they all do different things. The iPhone is the premium phone there is. It has the best of pretty much everything." Petition signers did not hold back on their criticism last night.

Geoff Bennett wrote: "Simply unbelievable that they think the NZ public could either be both that stupid or that obsessed with having a bit of technology they would sign up to an offer like a 2 year $6k rip-off it is."

Whitney Steel said: "This is disgusting, how can you justify these prices. I am ending my On Account contract with Vodafone today!! I don't care about the charges, I will not support a company who is so blatantly ripping customers off. Despicable!"

Mr Shalfoon said Vodafone had said very little about pricing before the phones came out.

"We said prices would start from $199. In our absence of saying everything, lots of people have created their own plans in how they think it would be positioned and when it didn't match what they thought, they've come up with the reaction they've come up with.

"But we've actually kept true to everything we've said. It's the most we've ever subsidised a new phone at launch."

New Zealand will be the first territory to offer the second generation Apple phone for sale as it is rolled out around the world on July 11.

Three Vodafone stores will open at one minute past midnight on Friday - Queen St (Auckland), Lambton Quay (Wellington) and Colombo St (Christchurch).

The phone will allow faster internet than its predecessor using Vodafone's 3G network, which the company says covers 63 per cent of New Zealanders.

i-WATERINGLY EXPENSIVE
* To buy the device outright costs from $979 (8 gigabyte version) to $1129 (16GB). It can then be fitted fit in with an existing account by adding a data plan. Buying an iPhone on a two-year contract is possible on three different data plans - the 250MB package costs $80 a month with the two versions priced at $549 and $699 respectively. The most expensive monthly option comes with the lowest entry price - $199 for an 8GB iPhone, but $250 a month with 1GB of data on a two-year plan.
* Vodafone's other main smartfone, the Blackberry, comes in three models that are available on two-year plans. Priced at $899, the phones cost $35 a month for 10MB or $45 a month for 100MB. Calling and texting plans are added to that cost and are about $60 a month.
* Vodafone also has a Nokia N95 (8GB) which costs $1400 and can have a data plan similar to the iPhone added.
* A Blackberry from Telecom costs about $999 and data plans range from $34.99 to $79.99 a month and are available in 15MB, 50MB, 150MB and 400MB.
* Telecom's Okta Touch (128MB) costs $799 to buy outright, or $529 for a two-year contract and is available on a variety of data plans.

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What do you think of Vodafone's iPhone pricing plan?

07 Jul 11:59 PM
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