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June 4, 2009 7:15 AM PDT

A $99 iPhone? It's already here

by Rick Broida

You can get a refurbished iPhone 3G for $99 right now.

At next week's Worldwide Developers Conference, we should find out if the rumors of a $99 iPhone are true.

Of course, savvy shoppers know that it's already possible to buy an iPhone for $99: For several months, AT&T has offered refurbished 8GB models for that tempting price.

(More recently, the company dropped the price of refurbished 16GB iPhones to $149, but at the moment those are out of stock.)

Obviously it makes sense to wait a few days and see what develops at the conference. After all, if you can buy a new iPhone 3G for $99, why go with a refurb? On the other hand, if the rumors don't pan out, you stand to save $100 (or $150 if you choose the 16GB model).

What's more, the only real downside to buying a refurbished iPhone is the warranty: 90 days instead of 12 months. That's probably a deal-breaker for some, but at least you can add an extended warranty and still come out ahead.

Personally, it's not the price of the hardware that bothers me: It's the $70 minimum monthly service charges. Forget the $99 iPhone--I want a service plan that's under $50. Somehow, I doubt very much we'll hear that kind of announcement on Monday. Sigh.

Rick Broida, a technology writer for nearly 20 years, is the author of more than a dozen books. In addition to writing CNET's The Cheapskate blog, he oversees BNET's Business Hacks. Rick is a member of the CNET Blog Network and is not an employee of CBS Interactive. Disclosure. Deals found on The Cheapskate are subject to availability, expiration, and other terms determined by sellers. Follow Rick on Twitter at cheapskateblog.
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Add a Comment (Log in or register) Showing 1 of 2 pages (39 Comments)
by cholloway1 June 4, 2009 8:30 AM PDT
I definitely agree, the $70-minimum monthly service charge has been the deal breaker for me.
Reply to this comment
by rickbroida June 4, 2009 8:50 AM PDT
And for countless others. I mean, I know that's a standard rate among the carriers, but I find it insanely expensive. I thought Sprint would be smart and offer cheaper plans for the Pre, but it doesn't look that way.
by billeeyum June 4, 2009 10:55 AM PDT
The difference is Sprints $70 plan includes texting. You have to pay even more for that on the iPhone.
by digitalducki June 4, 2009 1:34 PM PDT
hmmm... maybe you should less time dreaming on cnet and more time looking for a JOB on monster. $70 a month? come. on. You're telling me 5 dollars a week is what decides what phone you carry. Sad.
by ace10134 June 4, 2009 1:55 PM PDT
Well I pay $6 a month for unlimited data with T-Mobile!!!

That's the main reason why I don't wanna switch to sprint for the Pre, cuz I wouldn't get such an amazing deal anywhere else.
by ucbedge June 4, 2009 2:49 PM PDT
$5 per week is one way of looking at it.

I pay $30/month which includes unlimited data. I imagine hat cholloway1's plan isnt that much more expensive. For us, thats more like $10/week difference. Granted, that doesnt sound like much....until you start multiplying......

Youre forced to be on-contract for 2 years, right?
$10/week * 52 weeks/year * 2 years = $1,040

For us, an Iphone just doesnt cost $100. It costs $1,140. Thats alot of money, no matter what job you get off of monster.com ;-)
by digitalducki June 4, 2009 4:25 PM PDT
1000 is a lot of money yeah, but not spread over 2 years of your life.... think about what you can waste a grand on over 2 years... wanna multiply? Is it realistic to spend $1.29 plus tax on a cup of coffee each day? I think so... spread that out over 2 years. What would you rather have, brown teeth or an iphone??
by rpvitiello June 4, 2009 11:54 PM PDT
digitalducki and $1,000 I pretended I don't have now and put to work earning interest, is an extra $10,000 when i go to retire. ever hear of compounding interest? That $1.29 coffee is $10 you could have when you retire. is that coffee worth $10 a day? How about those soft drinks at McDonalds. they are "only $2.00," when you can go to the grocery store and pick up a 2 liter bottle for $1.50 that gives you 8 glasses for less than the price of one at McDonalds. The whole "who cares how much it actually costs look at monthly payments" crap is the effect of this credit crazed nation where everyone is in debt because no one actually saved any money, and only looked at what they can get NOW for a "low low monthly payment of only $XXX."

If you decide that the Service plan is or is not worth it based on its benefits and your economic situation that is fine, but saying $10,000 is insignificant means you either have a trust fund, or you really don't understand how money works. (that's good for the credit card companies as long as you don't eventually go bankrupt, bad for you if you ever want to not to live paycheck to paycheck no matter how much you make)
by b_baggins June 5, 2009 8:25 AM PDT
Right. Because all the people working for AT&T maintaining cell towers and COs should work for free, just like you do. And all the people working for the utility companies should work for nothing so AT&T can get their electricity for free.

No wonder we have a stinking fascist for president (look it up) when we have this kind of critical thinking going on.
by make_or_break June 5, 2009 8:31 AM PDT
digitalducki: you can use that sort of amortizing logic of yours for just about ANYTHING. Add all those of those 'justifications' up and suddenly you're looking at a not-so-insignificant chunk of change.

We pick and choose what extra costs we're willing to live with. For a lot of people, saving 20% on their monthly phone bill is bloody well worth it. Add-on apps and 3G speed ("Speed"? HAH!) for a telephone are neat and all, but it IS amazing how the world doesn't stop spinning and the sun still rises each day if you forego buying a phone that utilizes that particular lifestyle/marketing model. And I can imagine that a lot of folks--particularly these days--wouldn't MIND the thought of having an extra G or so lying around, even if it wasn't earning interest or buying up more AAPL common stock.

And no, I don't drink coffee.
by digitalducki June 5, 2009 8:50 AM PDT
rpvitiello, whats funny is I'm a finance manager, I fully understand interest. All I'm trying to say is, if less people sat around and dreamt of what they could do, and realized if they got off their arse and got a job, they wouldnt have to compromise every decision down to a dollar a day. Get a job, get what you want, move on with life. You cant take it with you, so save all you want, but if u get hit by a truck tomorrow you cant spend it anyway lol. And no, I dont have a trust fund, I dont work for apple or own their stock, but I work to get the things I want, then I get them. How much do I owe on credit cards? Zero.
by mediocrates--2008 June 4, 2009 8:54 AM PDT
"Personally, it's not the price of the hardware that bothers me: It's the $70-minimum monthly service charges. "

Amen, brother! But if not for that, I'd gripe about having my service provider chosen for me too.
Reply to this comment
by JacobVorpahl June 4, 2009 8:55 AM PDT
Likewise. I'd really like an iPhone, I'd even pay a monthly fee (something like $20-30 maybe?) for just an iPhone with data and maybe texting, but I'm not paying min. $70 for the plan plus more for texting. I just want an iPhone to have and play with that can always access the internet since I rarely use my cell phone and me, my wife and father all pool together on a family plan with Verizon that costs us little.

I wish they'd come up with something more accomodating for people in that situation (which from conversations with friends, there are a few others). Maybe even data access for the Touch. It'd seem as if they're leaving money on the table, but I'm not an exec and I don't know what the numbers look like.
Reply to this comment
by b1ueskyz June 4, 2009 8:55 AM PDT
I agree. I'd like to have an iPhone3G for most of it's features, but I live in an area with no 3G coverage and I have no need for a $30/month data package. I only use 20-30 minutes of my Verizon minutes per month. So, not a big phone user/texter/ web browser but I would like the phone for it's other features:GPS, etc.

The monthly plan is stopping me from getting an iPhone.
Reply to this comment
by SleepyInKC June 4, 2009 9:46 AM PDT
As another true Cheapskater, I'm with you about the service plans. I switched to a prepaid cellphone a few years ago. I can pay $100 for 1000 minutes that usually last me several months. I also carry an iPod Touch, which gives me most of the good stuff for the iPhone without paying for a plan.
Reply to this comment
by RLJSlick June 4, 2009 11:15 AM PDT
The $70 a month is a huge deal breaker for me, I got a great service plan right now throuch Verizon that is half of that, and that inclucing data and texting. This is just more Apple name asking for another big handout.
Reply to this comment
by iconoclast04 June 4, 2009 2:34 PM PDT
Do you really get unlimited data, and some kind of voice service for $35? If so, how'd you get that deal?
by CarFreak8394 June 4, 2009 11:56 AM PDT
"Personally, it's not the price of the hardware that bothers me: It's the $70 minimum monthly service charges."

Amen! If the iPhone comes to Verizon, and they drop their plans to maybe $50 or $60, I would have a very hard time resisting the urge to buy one. As of now, though, with the prices so high and the generally sucky AT&T service here in South Florida, I'll stick with my LG Voyager.
Reply to this comment
by mogley2005 June 4, 2009 12:17 PM PDT
The smaller companies like Boost Mobile, Metro PCS all have similar unlimited plans with data/text/phone etc all for $50.00. The caveat, however, is the service is spotty and the phones are really, really crappy and not subsidized. I am with you guys, if the data plan with minutes was around 50.00 a month I would have had an iphone a long time ago.
Reply to this comment
by mrbcoolman June 4, 2009 1:00 PM PDT
Its simple math for Apple iPhone+data+consumers needs=$$$$ (Apple dollars). In the end the cousumer suffers the cost.
Reply to this comment
by ZettaPixel June 4, 2009 1:30 PM PDT
If you don't have the $70 for a plan, then you shouldn't be buying a product like the iPhone to begin with. I work at a nonprofit... barely making $33k a year and $70/month is no problem. Why does this seem to be such a sore point for people?
Reply to this comment
by iff2mastamatt June 4, 2009 1:37 PM PDT
Because it's a waste of money.
by justinf79 June 4, 2009 3:01 PM PDT
Cuz paying $70 a month for a cell is a total rip off....
by Scopip June 4, 2009 4:48 PM PDT
Having $100 for a phone you use 2 years is different, than having $2k for the service fees over 2 years.
by Plano1 June 5, 2009 8:18 AM PDT
At $33K a year, a $70.00 per month charge for something unnecessary isn't a big deal?. What is that after taxes and deductions; around $23K take home if you're lucky? Do you live at home?
by pigmond June 4, 2009 3:32 PM PDT
I'm guessing he's got what I've got -- Sero -- it is no longer available unless you know someone or buy someone else's plan. Google it if you really want to know more.
Reply to this comment
by rickbroida June 4, 2009 4:32 PM PDT
I was lucky enough to get a Sero plan for my Palm Centro. 400-ish monthly minutes (more than I use) and unlimited texting data for $35/month. THAT's what I'm talking about.
by lbytesxk June 4, 2009 4:34 PM PDT
What $70? The cheapest plan AT&T has is $43 for 550 minutes + rollover. Add $30 for iPhone data plan which is mandatory and it's already $73, by the time they add all the stupid rip off taxes the bill will be close to $100 a month.
My wife and I have both iphone 3g's and with 700 minute plan our bill is $160/month
Reply to this comment
by eric_ahern June 4, 2009 5:32 PM PDT
the cheapskate in me is already scheming about letting my iphone contract expire (in september this year), carrying around one of these things http://www.nytimes.com/2009/05/07/technology/personaltech/07pogue.html, and just using skype for all calls and texts. theoretically, you could cancel home internet service and your phone plan, just pay 60 bucks a month for everything. maybe have a cheapo pre-paid phone as backup. i'm not sure if it's workable, but my inner scrooge gets excited at the prospect.
Reply to this comment
by Frederikrooms June 4, 2009 5:34 PM PDT
You guys in America are crazy! Why buying a phone for 99$ if you have to pay 70 a month? I think a lot of people are blind for the real prize of an Iphone, they think: 'why shoudn't we pay for an iphone, we have 99$ and we have a small budget left for the monthly plan!' Buy a simple 99$ phone and pay what you call people.

And if you have the money for an iphone, why aren't you guys buying for the 450$?
Reply to this comment
by gba2000 June 4, 2009 6:23 PM PDT
I don't think you can get the apple care on the refurb
Reply to this comment
by blusky08 June 5, 2009 7:17 AM PDT
Refurbs are not a good option. My experience with refurb phones in general is that they have issues. Often, it's clear where they've been pieced back together, etc. Lifespan suffers too. Definitely NOT a bargain, imo.
by make_or_break June 5, 2009 8:40 AM PDT
Refurbs are hit and miss. From my own irritating experiences Apple's replacement devices for defective units are almost always refurb units that some idiot QC checker decided was worth shuffling out into the general populace whenever another bad iPod or such comes in. It's as if they operate under the premise that "there's no such thing as a "bad" Apple device, only ones that are somewhat, ahem, 'challenged'. The real trick is to match each of these 'challenged' devices to that special someone who's too accommodating (or stupid) to realize that".
by TheTiredGuy June 4, 2009 11:20 PM PDT
I used to think that I needed the "real" internet service that the iphone kind of gets (which is why I got a sidekick a few years ago), but ended up realizing that it was more of a novelty to me. I realized I could pretty much do what I needed to do on the mobile versions of websites- which is why I'd probably never get something like the iphone. So, now I just pay an extra $15 on top of my voice plan for 1500 text/pic/video messages and 5mb of data.
Reply to this comment
by pschommer00 June 5, 2009 6:35 AM PDT
I completely agree with your last statement. The one-time cost of the phone is a small part of the equation compared to the on-going fee. In my mind, $70/mo. with zero text messages is too much. Multiply that by a couple others in my family and it becomes crazy expensive. How is this OK?
Reply to this comment
by z1221 June 5, 2009 8:20 AM PDT
The $70 minimum is something that would not pay for the plan that AT&T offers. But, for that amount, I could go to T-Mobile, and get 600 minutes, unlimited nights and weekends, unlimited messaging and unlimited data. Looks like I'll be canceling my Verizon service when my contract is up.
Reply to this comment
by icentieycl June 8, 2009 1:01 PM PDT
Your a what? Finance Manager.. There a Chinese saying money is something your not born with and you cant take with you when you die. Yes we should get stuff we want and need, but how much and getting the right price and best deal is something lot of American don't care. Yes a $2.00 coffee a day. What if you can get the same coffee for $1.80 that is only only $.20 time that to a year. 0.2x356=71.2 x that by 10 year = 712.00. Now that not much. Is it. But how about your breakfast, lunch, and dinner. $712.00 x 4 = $2,848.00.
That is not much right? How about 10 to 20 things we use everyday. From you tooth past, Shampoo, paper towel, to hair gel. etc. but lets just make it easy, let say 10 items saving at $.20 cent each that $2.00 a day that is $730.00 a year and $7,300.00 in ten years. add that to the $2,848.00 is $10,148.

OK OK save $10,000 in ten year is not much right. OK How about a family of 4. That is $40,000. I am not good with counting interest but you do the math. Now that just taking it easy. That not including hundreds of other we can save if we shop a little and compare prices. Of cause as a finance manager you want people to spend and not think of the nick and dime that adds up. Save is a practice. Yes can can't take the money with you but if you get hit by a truck and you didn't die you will need the money. How about your children. Don't you want your children of the future have a better life also can get what they want. Maybe your just a selfish person you don't care. I think much American do care.
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by driussi June 14, 2009 11:02 PM PDT
About 10 years ago, a wise man told me that one day, they'd be giving away hardware, and then charging you an arm and a leg to use it. At the time, I didn't fully understand what he meant.

Now I understand. Not just iPhones. Dish equipment, DVRs, etc. They'll gladly give you the hardware and then strap you for $50-$100 a month to use it.

Anyone can cough up $100 for an iPhone. It's the $900 a year you have to surrender to a third rate phone company that is the deal breaker.
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