OK, So I was wrong about the new iPhone and they did announce it at WWDC 09. I have to say, they left it so late that I did think they might have missed it!
But it will be with us next week and yes, of course I want one!
Lots of gnashing of teeth and lots of upset people over on twitter about the pricing and lack of upgrade pricing here in the UK.
First off, the tethering pricing is just ridiculous, really. Totally off the wall.
Secondly, there is no subsidised upgrade path for existing users - Ouch!
Basically, you need to pay off your existing contact on the 3G iphone (in my case £245) then buy a new phone and a new 18 month or 12 month contract. That would take the cost of the new 32GB iPhone 3GS to over £500 plus £30 per month.
The problem here is that O2 took the hit with the upgrade for existing users from the 1st Gen iPhone to the 3G. I presume the numbers don't work out to do it a second time, so although it looks horrendous, a contract is a contract and there's not a lot you can do about it. In hindsight, perhaps it would have been better to offer 12 month contracts knowing that a new iPhone would be launched in 2009 (well a pretty safe bet!) Had a 12 month contract been available, I probably would have gone for that.
The experience has influenced what I'll be doing about the new iPhone 3GS.
Of course, I need one for my show (no I do, really), so it's a legitimate business expense (phew!) so I could write off the existing contract and let the business pay for it. It would make it feel better to say it's not actually a phone but my mobile Mac. I'd feel better paying £500 for a state of the art mobile internet device (which really what it is). The thing that really grates is having to take out another 18 month contract for £30 per month. I just don't use the phone that much, and what happens in another 12 months time?
The next iPhone is released with HD support, front facing camera, built in iChat, 802.11n, etc, etc.
So we'll be in the same boat again!
Some figures on the new 32GB iPhone 3GS and my options
Terminate contract and Pay Monthly = £245 + 274.23 + 18 x £29.38 = £1048.07 over 18 months
OMG!!!
Now luckily, I have an escape route.
My lad is off to University in September and will need a decent phone. So he will be the lucky recipient of my iPhone 3G with another 5 months contract left on it. So I won't cancel the contract. Yes, I'll still have to pay the £245 over this time but at least it will be getting used, I'll not be just giving O2 a nice present! This leaves me with two options for buying a new iPhone:
Pay Monthly = £274.23 + 18 x £29.38 = £803.07 over 18 months
Pay As You Go = £538.30 over 12 months
PAYG also includes 12 months unlimited web and Wifi. £25 worth of calls will probably last me a couple of months! There's no visual voicemail or call merging but that's no big deal for me, I hardly use it as a phone. There is also no Internet tethering but at the current prices, who cares.
So in 12 months, when the next phone is available, I'll have no contract and can upgrade with no penalties.
So in my eyes, the PAYG deal is the better deal for me!
What have I missed?
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