How much will that smartphone really cost you?

by Joe P on June 30, 2009

Thinking about buying a smartphone sometime soon? Good. There are a number of quality options, and the quantity is growing by the month. Plus, because of the popularity of gadget blogs, we usually know what’s on the near, and even sometimes distant, horizon, so it’s even easier to plan for the device you really want. The operative word in the preceding sentence is “plan,” something many smartphone purchasers neglect to do prior to laying down $200 for their phone. There are so many costs of ownership, and it’s important to take everything into account before making a purchase. After all, you’re making a two-year commitment, so you’re best off knowing exactly what you’re getting into before taking the plunge.

The stunning fellows at Boy Genius Report sparked this idea by breaking down the ownership cost of four popular smartphones: the T-Mobile G1, the Apple iPhone, the BlackBerry Storm, and the Palm Pre. The advantage to this comparison is that each of the four major U.S. wireless carriers is represented.This not only provides a look at the cost of the phone itself, but the service on which it runs.

What they did was compare the entry-level pricing of each smartphone, meaning the lowest possible voice plan with the minimum data requirement. Unless SMS was included in the data plan price, it wasn’t included in the overall analysis. The results might be shocking, or they might be par for the course, depending on your vantage point.

Take, for instance, the BlackBerry Storm from Verizon and the T-Mobile G1. Both devices cost $149.99, but the two-year ownership costs are quite far apart. First off, Verizon charges an activation fee where T-Mobile does not. Verizon’s lowest monthly plan, while providing more minutes and unlimited nights, is $10 more per month than T-Mobile’s. Finally, T-Mobile’s data plan costs $5 less — and it includes SMS and MMS allotments. The difference adds up to $395 over two years.

This is the kind of comparison every consumer should run before making a decision on a phone purchase. The nature of the beast makes planning almost essential. You’re locked into a two-year contract, and failing to plan prior to that can prove a costly mistake. By looking at the two-year cost of the phone plus the voice/data plan of your choosing, you can make the most informed decision possible. Now that’s being a responsible consumer.

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