Is the iPhone Worth the Money?
Thanks to Walmart, I’ve been given the opportunity to do a long term review of the iPhone 3G. I’ll admit this is probably not a purchase I would have made myself, because I’m not convinced it’s worth the extra expense, both for the phone itself or for the extras on the cell phone plan I don’t normally pay for.
However, the geek in me is thrilled for the opportunity to give the iPhone a test drive. And everyone I know who has an iPhone just adores it! So I’m wondering if I’ve been wrong all along. Is a SmartPhone with a data plan worth the added expense?
Over the next couple of months I will be tracking the time and money I save by using the iPhone, so I guess I’ll have my own answer then. But I’m interested in what you think.
Is the expense worth it? In the end will I save time? Money? What do you think?
Photo by velorowdy.
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By Lynnae McCoy, on Mar 13, 2009
I'm Lynnae, wife of one and stay-at-home mom of two. I'm committed to getting out of debt by being frugal with my choices in life.
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I just bought an LG Incite for $50 when I renewed my contract with AT&T. I bought it specifically to help me save money. Because it has Windows Mobile and is WiFi compatible, I can send my price book and coupon spreadsheets to it as well as my grocery list. I do not, and would not pay for a data plan. But, I found my phone was connecting itself to the 3G network and sending data on its own (even in the middle of the night) which was being billed to me. I called AT&T about it and they took off the charges and blocked my phone from being able to use data. (I think the fact that they could see the data charges for 2:00 AM on a Tuesday convinced them I was not causing the charges myself.) I can still use the WiFi features without any charge. So, for me at least, I would say it is totally worth it.
Out of necessity (due to txt harassment during my divorce proceedings), I reluctantly eliminated txt’ing from my plan and went with a more “basic” plan (also eliminating as many add-ons as I could). It took a few days, but I have seen the extras I thought I needed were mere luxuries rather than necessities. I have changed my view of my cell phone’s purpose and am saving money in the process.
I do not have and really do not want, a cell phone with a data plan. (I never had or wanted a microwave oven, either, until I tried one, much to my mother’s amusement.) I use my cell phone to keep in touch with my husband, or for emergencies. My cell phone is an older model Sanyo. It has a camera, but I don’t often use it, except to take pictures of my grandsons. I will be very interested in the results of your review.
I do not have and really do not want, a cell phone with a data plan. (I never had or wanted a microwave oven, either, until I tried one, much to my mother’s amusement.) I use my cell phone to keep in touch with my husband, or for emergencies. My cell phone is an older model Sanyo. It has a camera, but I don’t often use it, except to take pictures of my grandsons. I will be very interested in the results of your review.
I have a data plan on my cell phone, and I love it. Access to e-mail, internet, unlimited texts, etc. I got a great deal from Sprint though – the SERO plan. which is no longer available in the plan I signed up for. I get all that for $36/mo, along w/ unlimited Sprint to Sprint phone calls, unlimited night and weekend, and 450 anytime minutes. I have never gone over.
That said, I wouldn’t spend $100 per month (plus data charges) on an iPhone.
My husband and I both have the iPhone 3G’s and just last week cancelled our home phone to just have our cell phones. (We were paying $50/month for that phone through Time Warner Cable).
We both have a data plan. My husband uses his phone for his real estate business and uses it as a remote desktop for his office.
Saving money? In that is replaces our home phone and helps with business. Also, great apps such as cheap gas locator and trapster (tells you where cops are) help out greatly.
I used to have the cheapest plan + cheapest phone but I decided to upgrade a few months ago. Now I have the iPhone 3G and I have to say- it’s amazing. I travel a lot (for business and pleasure) and I am usually scrambling to find the nearest wifi (free or paid) to check in to flights. I don’t have to worry about this now with my iPhone. Also, the data plan is only $30 more than my original plan- my total bill is still under $100.
And ditto on Amy W’s comment- it’s replaced my landline and the apps (gas locator, GPS, restaurant guides) have helped me save time and money.
I think for those who travel and do a lot of business, it is a nice phone and probably worth the investment, but I’m a stay at home mom and after the “novelty” of having an iphone wore off I realized I don’t need it, at this point we are considering canceling our contract early and getting me a different cheap phone. The one thing I do like is the GPS service it has and I have used that once when I thought I was lost away from home.
DH and I just looked at iPhones last night. We are currently with Sprint and to get the phones with ATT, the start up costs alone are over $500. Then add on the monthly charges for the plan and we were looking at close to $200 for two people (and that was with the family plan and only 700 minutes). We are paying less than a third of that with Sprint and i am not convinced that my DH would even carry the stupid thing as he wont carry his cell phone now (which he had to have for Just in Case times on the motorcycle). While I think the iPhone is great, I cannot justify the expense and we are DINKs.
I wanted an iPhone 3G for several months but just could not justify the extra $30 a month for the data plan. Then after having continuous problems with my current phone, I decided to go ahead and get one. I have not regretted that decision at all! I didn’t think I would use the data plan very much, but I have found that I use it a great deal.
I love the Google Maps that comes with the iPhone. It has a real help when I needed to figure out how to get to Ikea in Portland last week. I also check and update my Facebook with the free iPhone app for Facebook, surf the web much more often that I thought I would, listen to music with the “built-in” iPod, play some great games (Cubes, Trism, Monopoly & Tetris are my faves), check news stories, use the free Evernote app to view and create notes (syncs with my PC) and so much more. The iPhone 3G is such an elegant phone and the user interface is so much better than any other phone.
I like it so much that this summer when the new iPhones come out, I am going to buy one for my wife! I think it is the ultimate phone! The $30 data plan has actually saved me money on several occasions because I could check prices and look things up while in a store.
It is not perfect and it is not for everyone, but most folks will love it. After you have used it for awhile, you will have a tough time going back to anything else!
One app that you will love because it saves you money is App Sniper. It gives you a list of apps that are on sale at either a reduced price, or on sale for free! It costs just 99 cents, but has saved me at least $30 on apps. Many apps will have a “one day special” where they offer their app for free or a reduced price.
Enjoy your iPhone!
I got a blackberry pearl for my husband and myself in December. but instead of going to a retail store we went to Sam’s and renewed our contracts. Instead of $200 we paid $28 for the phones and they also did require that we have an internet package. I have my laptop and internet at home since I am a student. Just by renewing their we save a bundle. The down side was that the phone selection wasn’t as large. Hope this helps! Oh, and we don’t have a home phone either.
it should say they DID NOT require that we have an internet package! Sorry!
I continue to be amazed what the iPhone can do…like many others, we canceled our home phone service since getting them, which is probably the only true money-saver. The applications really make a difference though. I never leave the house without my grocery and to-do lists (rememberthemilk.com has an iPhone app), can always see what my family’s schedules are (Google calendars), do comparison shopping and check out reviews if I think I’ve found a good deal (Amazon), plus all the fun stuff :-)
Both of us have data plans. Hers is though work and paid by her employer and his we pay for ourselves. We both love them but I think if you need to cut back it should NOT be on your plan. It is an easy way to savee hundreds of dollars per year and you really don’t need it unless you can specifically make money by having it (see the comment above regarding the use in one’s real estate business). If you can’t write it off you shouldn’t have it if you need the money elsewhere.
I haven’t tried the iPhone, but I have a “Crackberry” Curve and I hate to admit that I LOVE it.
It was $50 with the contract and well worth it since I have an unlimited data and messaging plan (and 450 minutes I barely touch since Sprint-to-Sprint calls, weekends, and nights after 7pm are free). The total comes out to about $60-something a month and my husband pays about $100 for unlimited everything (though that’s reimbursed by the company he works for).
I love being able to look things up online whenever something comes to mind. The other day, my family and I were hunting down the parade route at a festival and I brought up the festival homepage with the info. Then I found the location on Google Maps and used the GPS to get us there.
I’ve looked up nearby restaurants and menus while traveling, I check Twitter and my Gmail regularly, I chat with friends on GTalk, I take photos and post them to Facebook to share with friends, I upload music that I’m practicing in chorus, I use the voice recorder to critique my singing, I pass the time when traveling by reading Google Reader or watching video on YouTube or CNN, I check our financial information and even update numbers in Google Docs. I use it as my planner, my alarm, my to-do list (via Remember the Milk), my calculator, my notebook.
The other day, my husband used his to video him opening a box and displaying the contents since the co. he ordered from seems to be shorting him parts.
I take photos of plants that I want to identify later, or of things that I want share with my husband (from our cats’ cuteness to things I’m thinking of buying). I read reviews of items that I’m looking at in stores and compare prices online.
In short, this “just get me something that makes calls” kind of gal has become a Crackberry convert and I can’t imagine life without it. So, while I know the iPhone has a lot of the same features, be sure to check out both.
I have prepaid through Alltel and recently upgraded my cheap $30 phone (with no bells and whistles) to a more expensive $60 phone (with a camera and caller id on the outside of the flip phone). I must say, I do enjoy the larger, brighter screen. The only thing I use my phone for are unlimited texting, calls and the occasional shot.
My husband has an iPhone. There are so few occasions when he needs to make a phone call that he put off getting a wireless phone until the iPhone was released. Why? This gadget can be his “office in a pocket.”
As far as money-saving, it’s saved us from making a purchase of a GPS navigation device. The application my husband downloaded works off the cell phone towers so it’s not as accurate as true GPS. But it works for what we need.
I live so far out in the sticks that cell phone coverge is a hit and miss thing at times. Never travel much and when I do I use Vonage off my laptap if needed and that works great the few times I am mobile. (not one to stand in a grocery store yacking on the phone or texting friends anyway)
The only mobile device we have is a throwaway phone with prepaid minutes for roadside emergencies if they occur. (we pray they do not)
My husband has one of these phones free through work… but it has saved us money… there are free apps to download that can show you who has the cheapest gas in the area, what stores have sales etc… those things have been great in helping us save a little here and there…
Hi
well I am a complete gadget girl but unfortunately do not have the money to buy them.
As for smart phones well yes i do think they are worth it IF you will use it. There is no point in having a smart phone if all you do is make calls take the odd photo and text. But if you surf the net, listen to music use socail networks regualry or need to send emails for business etc then I think they are wonderful.
I would say though that if you decide to buy one then make sure you shoose one that will meet your needs for a long time two years plus otherwise you will find yourself shelling out again within the year.
Like Lisa above, I’m a stay-at-home and just can’t see it. In fact, at the end of this month, my cell contract ends and I’ll be switching to TracFone. My 18-year old has had a TracFone for two years and has amazing coverage and not one issue with his phone. I’ll be buying it at Target and buying the 1 year/400 minutes card at the same time. The phone will cost $60 and the card will cost $100. For the life of my time with TracFone I will automatically have double minutes, so I’ll be getting 800 minutes with that first card I buy. So, I’ll have a cell phone for $13/month with 800 minutes to start with…not a bad deal as I calculate it out.
If you are a doctor, lawyer, publicist, real estate agent, broker or writer- maybe yes, if you need the immediate “now” knowledge to clinch/seal a deal. For the rest of us– it’s fluff and money. Apps are nice but burn battery time and money. Do you “need’ them or “want” them? That’s what you need to justify.
Very timely, I am starting my 2-3 month search (hey, I gotta live with this thing for two years) for a “smartphone”. I am looking at the Blackberrys . . . I have avoided anything more than a small, simple flip phone, but now need web, text, and email on the road . . .
The one thing I have learned is that these phones and plans are expensive if you can’t write off the expenses on your taxes . . .
The process I am using to help determine what will work best, is to question everyone I see with one. People are pretty upfront about the pros and cons. Thankfully, I still have time.
I’ve had my i-phone for about 6 months and I love it! I’m really not sure that it is worth the upfront cost plus the added monthly expense. We have a great deal on a monthly plan, but it is an added expense. Having everything – ipod, gps, phone, e-mail, web all in one place is wonderful. Do I need it — not so sure.
On another note — my favorite new techno furgal item is using skype as a phone service with my family.
It’s odd I have not seen one comment about not having a cell phone at all. That will really save you money. I have a few friends that have IPhones, and they pay about $80/month for the luxury. That is over $1000 a year. I just can’t wrap my head around the idea of a cell phone being a necessity. I am not that old (30), but remember a time when no one carried a cell phone. How did people get by? Here is a great blog post to refresh everyone’s memory.
http://earlyretirementextreme......e-pla.html
Just some food for thought. Just in case you are wondering I do not have a cellphone. One benefit is being out of touch. It is so nice to go on a ride or walk and not have any interruptions.
@Glenn
I remember no cellphones and no answering machines (never mind v-mail)– you just called back.
I have always avoided and been slow to add the full capabilities– I don’t like the electronic leash and the 24/7 access, but necessity is creeping up on me . . .
I’m with you, Bob. My cell is five years old and I’m on a prepaid plan for which I pay about $120 per year. Also, I have no land line, which at its most basic costs $30 per month. The iphones are nice, but I’ve noticed that it’s mostly my more spend-thrift friends who have a lot of debts that have bought them. Even if you really wanted a nice touchscreen cell, I’m sure there are more cost-effective plans out there by now.
I have no LAN line and have a very basic cell plan and a 6 year old cell phone. Its most luxurious feature is dual color screens ( whoah!) anyhow, I actually had a newer phone for 6 months that came free after my 2 year contract was up. But the new phone tore up pretty quick ( I spend lots of time in the garage) hence I turned my old phone back home. It is bullet-proof, doesn’t need to be recharged except once a week, gets good reception, and does the job. I see no reason to get another new phone until my current plan runs out. Then I’ll see how good the new “free” replacement phones are. I’m sure by then phones will vacuum the house for you.
Believe it or not, I work in high tech, and everyone in the office except me has an iPhone.
Alli,
While I agree that it’s not a need for most, remember that being frugal isn’t just about saving money for the sake of having money, it’s about spending one’s resources according to your priorities and values. Money is a means, not an end.
I love, love, love my Blackberry, but I pay for it with my many frugal habits like choosing reusable products and using less electricity than anyone I know. So long as I thoroughly enjoy my Blackberry and can afford it, I don’t see anything unfrugal about it. And I wouldn’t think anyone was unfrugal just because they had an iPhone.
I just found this site. I am really surprised at the comments justifying an iPhone on a site called “Being Frugal.” The iPhone will NOT save you money, no matter how you want to spin it. I agree that it’s a great device if you are frequently out of the office and need it for your business. But otherwise, it’s a toy. I *wanted* one of these (didn’t *need* one) but couldn’t stand the thought of spending $2700 on it over the next 2 years, between the cost of the phone and the contract. So I got a Tracfone (see Erin’s post above). 2 years from now I will have $2400 in the bank that I wouldn’t have if I’d purchased an iPhone.
I feel the iPhone are like computers which are decked out with the latest hardware and runs 500x faster than any other computer. Yet, the user uses the computer for word processing and email checking.
A phone is a phone is a phone. If that’s all you will use it for, don’t get the iPhone.
The best thing about the iPhone is the user interface. It is intuitive, reliable and can run many useful applications, which are readily available at Apple’s online App store. However, the iPhone does not have good reception in weak signal areas and has mediocre battery life.
Another option for those considering a smartphone is an unlocked Nokia E71. It looks more like a Blackberry (with a keyboard). And it gets great reception and has tremendous battery life. Plus, it is $15 less per month on AT&T, because it only requires their $15 monthly unlimited data plan, not the $30 per month Blackberry or iPhone data plans.
There is an upfront cost to purchase these highly rated smartphones (look on Amazon.com). Still, they could be a good alternative for those considering a Blackberry or iPhone.
Are expensive cell phones worth it? Meg brings up an interesting point: “worth it” will mean different things to different people.
As I recall, Amy Dacyczyn, author of “The Tightwad Gazette,” began practicing thrift with the sole intent of improving her family’s quality of life. The money saved by practicing frugality allowed them to live in a farmhouse in New England. So, her thrift wasn’t an end in itself, but was ordered toward achieving a higher good.
Perhaps there are benefits to smartphones that can’t easily be quantified in monetary terms — benefits that might be filed under “Quality of Life.” After all, isn’t that the end result being frugal should achieve?
I’m not sure that the expensive phones are really worth the extra money, to be honest. Sure, the iPhone is really neat and has a lot of cool features, but it’s a luxury, not a necessity. Most of those apps are for convenience, so as with many things, you’re paying for the convenience. I personally have no desire to have an iPhone. I don’t even own an iPod because my cheap MP3 player does the same thing. Feels like you’re paying for the name along in most cases and I certainly don’t see it saving you money, especially with a data plan.
Now, all that said, I’m totally buying the Palm Pre when it comes out this summer. There are several reasons, most revolving around my geeky nature. However, one key factor for me is that I like the idea of having everything in one place. I have a PDA that I use to keep track of my DVD collection, but I always forget to grab it when I go to buy DVDs, so I double up. Having it on my phone would be convenient. Also, in terms of daily planning, I think it would be much easier. I hate using paper for my daily planning and I can’t use outlook, because I can’t transfer in work or home – depending on where I use it – so I end up with two systems. That’s just too complicated. With the Pre, I can simply everything to the phone and go from there. I’m looking forward to it.
I have recently switched from a Sony Ericsson advanced “dumbphone” to HTC Windows Mobile smartphone and the difference is huge. My phone allows me to have push service for three email accounts (GMail, Hotmail and work Exchange server), has GPS receiver that works great with GMaps and TomTom software, runs IM client and has a full-size web browser. There’re tons of different apps for Windows Mobile and if you can’t find something you need you could always write one yourself :) The downsides in comparison with my previous phone are shorter battery life, increased complexity (one does need to be somewhat tech-savvy to take full advantage of WM phone) and the fact that WM devices tend to freeze more often than any other phones I’ve owned. In terms of cost I was able to get on, now expired, Sprint Employee Referral plan and I’m getting voice + unlimited text and data for $30/month. I just hope Sprint doesn’t kick me off this plan…
When I was a commuter in a busy city and rarely saw my husband (because he was commuting to school in another direction), a cell phone was a necessity in my life–and we had the bells and whistles that were typical at that time. Lots of calls, lots of texting, while on the road and elsewhere. It was great, and I was able to still feel connected to faraway family and friends.
Now, however, we live in the small town where I grew up, close to my family. We don’t have children. I stay home; hubby works 5 minutes away from our house. We realized that we don’t even need cell phones and canceled them completely. That was a year ago and we haven’t looked back since.
I find that many people are addicted to cell phones. I can’t go to a restaurant without sitting near someone chatting away (a particular pet peeve of mine–really, if it’s that important GO OUTSIDE). If someone needs to reach me, they can leave a message on the machine at home.
I picked up a used Iphone 2G from someone that was upgrading to a 3G Iphone for $200 (resale value would be around $300-350ish so I figure I am ahead already).
I unlocked the phone and am using it with my parent’s tmobile plan so really all the phone costs is $10 a month (for the additional line). Using access internet with their $5.99/month plan – total cost out of my pocket $16/month.
I am considering an iphone and am the type of person who does a lot of research first. (hence why I am reading everyones posts) I am also a person who has used Sprint and Alltel. I will admit that AT&T at first looks expensive. But what I have found is that AT&T has so many customers that you can scale back on plans and still get the same benefit. I got rid of unlimited text and actually only have the text 200 and I have the smallest family plan with free nights and weekends and rollover. I get free AT&T mobile to mobile text and minutes. Calling the wife is free. A few months the rollover minutes rack up and then you really don’t have to worry. I use my phone all the time and still have 1700+ rollover minutes. This helps ease the worry of going over. You could start with the higher plan and then see how much you use. when you choose a different plan, your rollover minutes don’t go away. Now the idea of the iphone is really why i am on here. I have noticed all the “iphone killers” and have friends with them. In the end the side by side comparison just doesn’t match the iphone. They were cool and came close, but still no iphone. (hence why people are unlocking them and using them on other networks) I did find out though that unlimited data with an iphone is more expensive than unlimited data with a regular smart phone, not counting the blackberry server. (yes, I had one of those too) blackberry is more expensive because of the blackberry fees built into the unlimited data). All in all I think I am going to get an iphone. Thanks for everyones post it really helped confuse the Sh@# out of me!
I too was considering an Iphone. YES it is very expensive. Do I need it? Probably not! So I got the LGVU. (I am on a 30 day trial) Looks and acts like an Iphone but cheaper. It has a televison which is very cool and that means an extra $15 per month. Do I need that? Naw… but I needed a new phone and it was a deal at A T & T. They have mail in rebates too. The long and short of it is … IF you can afford it I say go for it! My daughters LIVE on their cell phones and I am finding I too rely on it. Why not have what we want? I can’t wait to hear what you think :)