[dsenette]

Most cellphones sell for less than their actual production cost, with the cellular network paying the difference as an incentive to buy. In exchange, customers promise to use the service for a set period, usually two to three years. When subscribers cancel early, phone companies charge a cancellation fee, usually citing the need to recoup the cost of the subsidized phone.

Though AT&T isn’t subsidizing the iPhone’s weighty price of $499 to $599, depending on the storage capacity, the company will charge a $175 termination fee for iPhone users who want to break their two-year contracts.

AT&T spokesman Mark Siegel said that termination fees pay for more than phone subsidies.

“There are certain fixed costs we incur in serving every customer who establishes service with us.”

...what fixed costs are they incurring that require a $175 cancellation fee on a phone that you paid full price for? i can understand if they said "you stay with us for 2 years and we'll cut the phone price in half" that makes sense...but if you pay $600 dollars full price for a phone (which darned well better cook my lunch and do my laundry for that price) why are they charging you "restitution" charges when they made no concessions at the time of signing the contract?

makes sense that AT&T and apple would team up....just gives me more reason not to to business with either

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Demand is so high for this phone no one will care. Just to support this, a guy on craigsads (or whatever it's called) has a add up to pay 10,000$ for the first iphone.

I see it being like gas, everyone wants it so you can gouge them anyways you want. No matter if you charge full price for the phone or not. Blackberry's cost around 50$ min. a month, I wonder how much this one will cost a month and if it's directly related to the cost of the cancellation fee, probably is. All in all though, I completely agree, this price is a way to high.
James

[james_8970]

Demand is so high for this phone no one will care. Just to support this, a guy on craigsads (or whatever it's called) has a add up to pay 10,000$ for the first iphone.

I see it being like gas, everyone wants it so you can gouge them anyways you want. No matter if you charge full price for the phone or not. Blackberry's cost around 50$ min. a month, I wonder how much this one will cost a month and if it's directly related to the cost of the cancellation fee, probably is. All in all though, I completely agree, this price is a way to high.
James

[Facedown98]

Cancellation fees... I refer to those as the CEO Retirement Fund...

[sari]

I have 2 new laptops I'm configuring, both of which have an internal Verizon broadband card. They also have an early termination fee of $175 per line.

[james_8970]

Ekkk.... better look at the cancellation fee for the cell phone I'm buying today. These are crazy.
James

[warriorscot]

Do you not get pay as you go carriers in the US they are really popular here in Europe you pay more for the fun but after that its either cheaper or about the same as a contract and no cancelation fees or contract fees.

I dont think i will be getting an iphone its just too ambitous if they had a battery that could power it doing everything it can do for a day or two but as it is if you actually use it as anything over than a phone the battery doesnt last at all which to me seems pointless instead of a phone they should have made a really good video ipod of similar size bu with better battery life because thats what people want you see people watching videos on those crappy ipod screens or on their PSP what they should have made is something that can compete with archos but smaller and cheaper and leave the phones to the phone manufacturers that allready have the phone market figured out.

[**Brian**]

You can buy an iPhone, but you won't be able to use it in Vermont.

Apple Inc. has chosen AT&T, formerly Cingular Wireless, to be the exclusive cellular carrier for its highly publicized iPhone product, and Vermont is entirely without AT&T coverage.

The iPhone is an Apple Inc. product that combines a cell phone, a computer and an iPod. Large portions of other states are without the service as well, including Maine, New Hampshire and upstate New York.

Vermont is the only state totally without AT&T coverage.

I think the iPhone is an awesome thing, but I also think that to have a phone that costs $600 USD to have it is rediculous. In Vermont, there are only 3 carriers that offer cell service: Unicel, Verizon Wireless and Nextel. As it states in the above article (From my Local Times Argus - LINK) Apple teamed up with AT&T to provide the service, so as it stands Vermont would not have access to the network anyway.

I have to agree with Warriorscot that the phone battery is the most important thing - If you have a phone with all the features that the iphone sports, using the features will kill your battery faster than anything. If you have to use the PHONE, the chances of having a good battery deminish greatly. When I boughjt my Motorola V555, I asked the rep alot of questions about the battery life, as I have a camera and SMS features and can use the net on my phone as well - He said that the more features you have on your phone, the more power it takes to RUN them, which means that usage of the features determines the length of battery life, and if the battery is draining, the talk time is limited. This makes sense

Now, I paid about $286 USD for my V555. I did that because I wanted to have a phone that had some bells and whistles, but had the compact and easy use component. Being disabled, the MOST important thing to me is the Flip type clamshell, as well as the Bluetooth capability, so I can go handsfree - My phone rarely leaves my side, and my bluetooth earpiece is nearby for those times I need to use both hands on a PC or when walking on crutches: when I drive, I also use the earpiece, but when unsafe, I discontinue and shut it off. I also like the GSM network because the signal is almost always there, and there are fewer dropped calls - but being Vermont, there are places where the signal is terrible - I rely on my cell alot, so I want one that works - I have had my cell save my butt several times - The V555 is indepensible - can that be said about the Iphone?

Iphone has its niche - but I can't see spending $600 for ANY device like that - Cell phones are not indistructable and can break - the only way that a person would want the Iphone in my opinion is if they know what the phone can do, can deal with its limitations, and can afford to maintain it. I can't see Vermont retailers selling Iphone, or any other retailer if service can't be had over here.

I'm glad I have my phone - I want my phone to be able to be used to make calls and send messages and the occaisional pic, but I can play music on my MP3 Player

Brian

[admin]

Verizon will give you a prorated cancellation fee. To my knowledge they're the only one.

[MoNsTeReNeRgY22]

Verizon will give you a prorated cancellation fee. To my knowledge they're the only one.

Im pretty sure admin is right.

But IMO, the iPhone isnat that good. I was lucky enough to try one out about a month ago and I wasnt that impressed. Yes, its made by Apple, and called "i"Phone, other other than that its nothing special. My enV can do everything the iPhone can do but the touch screen and the Apple OS. Plus Verizon Wireless is a heck of a lot better cell service than AT&T and Cingular will ever be!

[warriorscot]

To me apple are just missing the market and trying to expand into an allready mature market, to me they should take out the phone part of it and just have it as an ipod with video and wifi that uses a touch screen and a hard drive would be nice.

[anzenketh]

For me I have AT&T Personally I hate them. They have not been so bad as soon as I landed up on business line support As for the Iphone I do not plan on getting it Even though I need a new PDA. I think I will go with a smartphone instead.

[**Brian**]

For me I have AT&T Personally I hate them. They have not been so bad as soon as I landed up on business line support As for the Iphone I do not plan on getting it Even though I need a new PDA. I think I will go with a smartphone instead.

I don't want an Iphone simply because there is only one carrier that even offers it (AT&T) and they are not even in Vermont. Also, I am of the opinion that if you get this phone, or any phone with as many bells and whistles as this one has, you run the risk of malfunction or breakage. The Motorola RAZR and KRAZR are so thin that can malfunction or break, or worse, be DROPPED - Ive already busted the OEM faceplate on my V555 I wish motorola would come out with somethiong that is big enough and study enough to be held in my hand without breaking ;( There is no way in Geekdom that I will EVER own a phone smaller then my hand ;(

Brian

[MoNsTeReNeRgY22]

Wow, the iPhone is such a joke. I just found this intesting quote about what th iPhone doesn't have.

• Songs as Ringtones
• Games
• Any flash support
• Instant Messaging
• Picture messages (MMS)
• Video recording
• Voice recognition or voice dialing
• Wireless Bluetooth Stereo Streaming (A2DP)
• One-size-fits-all headset jack (May have to buy an adapter for certain headphones)

Stuff we already knew it didn't have
• 3G (EV-DO/HSDPA)
• GPS
• A real keyboard
• Removable battery
• Expandable Storage
• Direct iTunes Music Store Access (Over Wi-Fi or EDGE)

All it is, is a iPod that can call people

[anzenketh]

It does not have flash support

Then how does it play youtube stuff.

[warriorscot]

Youtube re-encoded everything into H264 just for apple it does lack allot but as i said before take out the phone stick in a hard drive and give me a proper video ipod, i am thinking about maybe getting a PSP or something allong those lines for watching videos.

The motorala RAZR and its succesors are actually large phones they are thin but solidly built for it they are allot more knock proof that other phones ive had ive dropped my razr more times than i like to count. The small size is in the thinness they are pretty wide(more than most) and longer than most too. The reason i like them is they are big when open and perfect pocket size when shut.