Americans are bemused and aghast that the iPhone 5 might cost $800, suggesting on Twitter that for $800, the iPhone 5 had better “catch itself” if the owner is clumsy enough to drop it.
The problem for US consumers is they’re mixing up their facts, along with the apparent error of the $800 figure pertaining to Apple’s future share price, which was Chinese-whispered into an $800 price.
The thing that people seem to forget or misunderstand is that the $99 or $199 price for the iPhone in the US is NOT the outright purchase price, but merely the upfront cost to get onto a 24 month contract, with the iPhone 3GS available for $0 upfront.
Even in the US, if you buy the iPhone outright, it will cost hundreds of dollars more than the contract price, just as is the case in Australia.
Thus, the iPhone 5 at or near $800 is an absolutely reality if you buy it outright, and even if you purchase it on a contract, you’ll end up paying that purchase price over the course of 24 months.
Amazingly enough, these prices are actually cheap. I remember when the Nokia N95 was king of the smartphone hill, and its outright purchase price 5 years ago, upon launch, was AUD $1300 – it certainly was priced like the “multimedia computer” it purported to be.
As for the $800 rumour – it’s always good to try and find the source of the rumour first, so you can figure out just how accurate – or otherwise – it is.
However, if you think your iPhone really only costs $99 or $199 in the US, just remember, it’s not on a 24 month contract for nothing!