The $99 iPhone Is James Bond, The Others Are Joe Schmoe

By MG Siegler

While it’s not being talked about too much, the $99 iPhone 3G is a very interesting play by Apple (AAPL). It takes what was previously a just out-of-reach device for many, and puts it at a magical price-point. Sure, it still won’t sell everyone, like the people who only care about getting the phone that their carrier is offering for free, or those looking for the cheapest possible monthly plans. But just look at the iPhone compared to the other $99 phones out there.

That’s what we did. And originally we set out to compare the various specs. But looking them over, it’s really a joke. And you can basically see all you need to see simply by looking at the devices being offering by the major carriers in the U.S. at this price point.

Of course, there are legitimate iPhone competitors out there, namely the Palm Pre and the soon-to-be-released T-Mobile myTouch 3G. But the Pre sells for $199 (or $299 before rebate) and the myTouch will also cost you $199. That’s iPhone 3GS territory now. This $99 range is a whole different ball game.

When I looked at the $99 phones, I started to think of a high school reunion. Some show up as successful business people, some as boring cookie-cutter suburbanites, some as fat, overweight slobs. And that’s fine. But then there’s that one person who shows up and makes everyone else look worse. Everyone there has something in common (in this case, the high school), but you wouldn’t know it just by looking at this one James Bond-type in the full tuxedo while everyone else is wearing rags. In my opinion, that’s kind of like the $99 iPhone 3G compared to the other $99 phones out there.

Let’s take a look.

AT&T’s $99 Offerings:

James Bond.

The successful business guy. Kind of pudgy, pretty boring.

The less successful but skinnier business guy. A pencilneck.

The guy who thinks he’s James Bond, but bought his tux at the thrift store — and it’s blue.

The guy wearing his clothes from when you were still in high school.

That odd foreign exchange student that no one still wants to talk to even though he’s popular in Europe.

Some crazy-looking dude.

A total square.

That guy who just got out of rehab.

---

T-Mobile’s $99 Offerings:

The girl was popular in high school but now is just kind of ugly, and oddly shaped.

Another business guy. Bland. Has his family on his “Fave 5″ though.

The short, fat guy with the shiny large head.

---

Verizon’s $99 Offerings:

Spunky, ditzy, short girl. No one took her seriously then, no one takes her seriously now.

The dude who’s really into guns.

The guy who’s trying too hard.

Again, nice suit — in 1999.

Wanna-be hipster.

The short sidekick of the wanna-be hipster.

Oh God. Don’t talk to this one.

---

Sprint’s $99 Offerings:

The ugly duckling.

The homeless guy. Hasn’t bathed in months.

Had a bunch of kids at 19. Now divorced and wears bold colors to stand out — which doesn’t work.

Business guy with a big chin and a square head.

The girl with the Coke-bottle thick glasses.

The former high school star quarterback. Still loves sports, but is between crappy jobs.

[Thanks Cameron]

Original post

Comments

[JamesApple:]

The BOGOberry guys are from the Adams Family. And although they wear business suits, they only do emails and are heavily in debt from giving half their stuff away and airing carpet bombing commercials.

Jun 29 10:38 AM

[User 389824:]

Its the Rate Plan, stupid! Even though the consumer gets one heck of a deal at $99, they will end up paying hundreds more over the term of the AT&T rate contract, compared to Sprint or T-Mobile. And the horrible AT&T coverage. The cost of the phone is only the beginning. Doubtless, Apple has produced a wonderful handset but it is married to a bum!

Jun 29 10:58 AM

[Aryamehr:]

We all know that nothing is for free. The $99 iPhone was put into play only because it just couldn't compete against the Palm Pre. However, one also needs to note that Sprint offers their Pre for $99/m on a 'simply everything' plan, which includes unlimited Voice/Data & Texting, while ATT offfers the iPhone for $150/m on a similar program. This is $1,200 more over the course of the contract you sign with both carriers. So to go around and make claims without expounding on the fine print wouldn't be forthright. You should also note you get what you pay for, the iPhone 3G only has a 2 Mpixel camera without flash, it is slower than the Pre, it has a poor battery and can't multifunction. The newer version iPhone 3GS, is slightly faster than the Pre in some aspects, however since it can't multi-function closing one application to go to another application categorically negates any speed advantage it might have. Its accellerameter is slower and it still doesn't have a good battery life. You can't change the battery and you are tethered to the virtual keyboard, granted it is better in landscape mode. It is my understanding that the little speed advantage associated with the 3GS emanates from the extra memory, which you pay for. Remember adding memory is something every company can do with little effort, so if that is all Apple has to offer against the Pre, I will continue putting my bets on Palm.

Jun 29 11:18 AM

[JamesApple:]

I have a iPod Touch 32 Gig, I have no data plan and I use Skype. Therefore my costs for data and voice is almost $0.00 per month. And I get 60000 applications to use. I got 6 iPod PowerPaks fully charged therefore the battery life for my iPod is infinite. I can pick and choose from thousands of third-party iPod accesories I can make my iPod Touch look like Jessica Alba spending very little money. How about you, BOGOberry and Palm?

Jun 29 11:58 AM

[Wolverine58:]

You're arguing technical details and which phone is better given the price you pay. You're argument is logical, but in the end this is not about logic but it is about marketing. The IPhone is as much a status symbol and fashion accessory as it is a high end phone. Owners of the I-Phone tout it's intuitive design that makes it very easy to use and easy to learn how to use. The I-Phone is hot and sexy and the Pre is not.

If you really need something to get work done like a corporate user, then you'd go with a dull looking competitor that meets those needs. That really isn't the target market segment the IPhone is geared to. It's good that there are so many choices, because this provides a better selection to the particular end user's needs.

Jun 29 12:16 PM

[RLLH:]

Interesting puff piece for Apple but rather short of reasons to support the conclusions.

Jun 29 12:24 PM

[JamesApple:]

Ounce for ounce, Pre is probably the best enterprise phone in the world.

Jun 29 12:26 PM

[JamesApple:]

007 never multitasks, especially when he's with women.

Jun 29 12:36 PM

[Jay Bruin:]

This article is bascially a product review, articles on Seeking Alpha are supposed to be "Market Oriented" (seekingalpha.com/page/...), meaning financial markets, not product reviews or consumer information.

Jun 29 01:20 PM

[EJL:]

comedy. please support this with facts. other than a few EAS policies, what else is there?


On Jun 29 12:26 PM JamesApple wrote:

> Ounce for ounce, Pre is probably the best enterprise phone in the
> world.

Jun 29 04:11 PM

[EJL:]

You have been pumping the Pre well before it was released. Your analysis of the plans is accurate, but I can't get on board with the notion that the Pre is a better device than the 3G iPhone. I had one for a few weeks to test it out and my feeling is that it is neither beats out iPhone for a gooey UI and media/web nor does it beat out the Blackberry for messaging/core communication. I feel like it's stuck in between. The screen on the Pre is a little too small and the keyboard is usable at best (if you don't accidentally cut yourself on the sharp edge). I honestly felt like it's iPhone junior as it basically copies iPhone with the web browser and gestures. The finger gestures were usually accurate, but iPhone still has best in class touch. Your myth about the iPhone not multitasking is a joke. Of course it does, Apple just chooses to control it in the name of a great user experience. This will not end up being a persistent competitive advantage, especially in light of Sprint/Palm's marketing of this feature so heavily.

What is most striking to me is that the feedback I am seeing on the 3G and 3GS is that the new software makes the device faster and improves usability and the new hardware really makes a difference in speed. While I don't agree with your analysis, the good news is that a rising tide lifts all boats and Palm will do fine as more users gravitate to smarter devices.


On Jun 29 11:18 AM Aryamehr wrote:

> We all know that nothing is for free. The $99 iPhone was put into
> play only because it just couldn't compete against the Palm Pre.
> However, one also needs to note that Sprint offers their Pre for
> $99/m on a 'simply everything' plan, which includes unlimited Voice/Data
> & Texting, while ATT offfers the iPhone for $150/m on a similar
> program. This is $1,200 more over the course of the contract you
> sign with both carriers. So to go around and make claims without
> expounding on the fine print wouldn't be forthright. You should
> also note you get what you pay for, the iPhone 3G only has a 2 Mpixel
> camera without flash, it is slower than the Pre, it has a poor battery
> and can't multifunction. The newer version iPhone 3GS, is slightly
> faster than the Pre in some aspects, however since it can't multi-function
> closing one application to go to another application categorically
> negates any speed advantage it might have. Its accellerameter is
> slower and it still doesn't have a good battery life. You can't
> change the battery and you are tethered to the virtual keyboard,
> granted it is better in landscape mode. It is my understanding that
> the little speed advantage associated with the 3GS emanates from
> the extra memory, which you pay for. Remember adding memory is something
> every company can do with little effort, so if that is all Apple
> has to offer against the Pre, I will continue putting my bets on
> Palm.

Jun 29 04:26 PM

[JamesApple:]

iPhone is the most powerful handheld OS, programmable device in the world. If you know to program I highly suggest for you to jailbreak the iPhone using Cydia or another community and program the full blown OSX underneath. The iPhone has 64 times more memory than the old Dec PdP7 that Al Thompson and Dennis Ritchie developed Unix and C on. iPhone is much more powerful than many Unix and Windows servers in operation now. What are you guys talking about?

Jun 29 06:52 PM

[LoveShorting:]

interesting piece. 1 picture = 1000 words so thanks for about 20,000 words which can be absrobed in less than a minute. I had no idea there were so many $99 phones. You make me feel better about my short PALM position. thank you.

Jun 30 09:38 AM

[mollytjm:]

you can multitask on the iphone...it keeps your place on each application. but to have multiple applications open makes any smartphone very slow. regular battery power packs are cheap, fast and small and you can buy those batteries anywhere; you don't need to be able to remove the battery.
if the Pre has any advantage, it won't keep...no one innovates as quickly or well as Apple. they have vision...they make a product that feels like it's part of you...because in the future, it will be.
Apple is a great long term investment.
Long APPL

Jun 30 10:34 AM

[peter02l:]

This is the absolute best article I have read in a long while. Perfect characterization!

Jul 01 08:31 PM

[peter02l:]

Just bum a phone. You don't need a rate plan.


On Jun 29 10:58 AM User 389824 wrote:

> Its the Rate Plan, stupid! Even though the consumer gets one heck
> of a deal at $99, they will end up paying hundreds more over the
> term of the AT&T rate contract, compared to Sprint or T-Mobile.
> And the horrible AT&T coverage. The cost of the phone is only
> the beginning. Doubtless, Apple has produced a wonderful handset
> but it is married to a bum!

Jul 01 08:34 PM

[peter02l:]

I am sure he weighed everything!

(ounce for ounce)


On Jun 29 04:11 PM EJL wrote:

> comedy. please support this with facts. other than a few EAS policies,
> what else is there?

Jul 01 08:40 PM

[peter02l:]

Don't waste your breath talking to a Motorola i365.


On Jun 29 04:26 PM EJL wrote:

> You have been pumping the Pre well before it was released. Your
> analysis of the plans is accurate, but I can't get on board with
> the notion that the Pre is a better device than the 3G iPhone. I
> had one for a few weeks to test it out and my feeling is that it
> is neither beats out iPhone for a gooey UI and media/web nor does
> it beat out the Blackberry for messaging/core communication. I feel
> like it's stuck in between. The screen on the Pre is a little too
> small and the keyboard is usable at best (if you don't accidentally
> cut yourself on the sharp edge). I honestly felt like it's iPhone
> junior as it basically copies iPhone with the web browser and gestures.
> The finger gestures were usually accurate, but iPhone still has best
> in class touch. Your myth about the iPhone not multitasking is a
> joke. Of course it does, Apple just chooses to control it in the
> name of a great user experience. This will not end up being a persistent
> competitive advantage, especially in light of Sprint/Palm's marketing
> of this feature so heavily.
>
> What is most striking to me is that the feedback I am seeing on the
> 3G and 3GS is that the new software makes the device faster and improves
> usability and the new hardware really makes a difference in speed.
> While I don't agree with your analysis, the good news is that a rising
> tide lifts all boats and Palm will do fine as more users gravitate
> to smarter devices.

Jul 01 08:43 PM

[IancoleTX:]

Pretty damn good article. I love PALM short at $16, might be time to go ahead and pull the trigger and let it sit for a few months.

Jul 02 01:47 PM