We all know the iPhone 3G S comes with a very attractive price tag of $300, except for those of you looking to upgrade their 3G of course… However, do you know how much the 3G S will cost you over the course of the 2 year contract you’re extending with AT&T? And how does this cost of ownership compares with the Palm Pre and Android G1?

That’s the question that the guys over at BillShrink asked themselves and they did some more digging. The results? Well, not very surprising if you ask me…

The iPhone 3G S seriously kicks the ass of the Pre and G1 on most levels except on multitasking. Where the 3G S takes a big slap in the face is on the total cost of ownership. The cheapest phone to own over a 2-year contract is the Palm Pre with a total cost of $2,600. The G1 comes at the second place with a total cost of $3,150. Our beloved iPhone 3G S is the big loser with a total cost of $3,800. Note that all these costs do not include the initial cost of the handset.

In other words, the iPhone 3G S costs about 17% more than the G1 and 32% more than the Palm Pre over the course of a 2 year contract.

No wonder why AT&T is trying to extend its exclusive agreement with Apple. AT&T is completely milking it because it knows the iPhone 3G S will sell. This being said, when Jesus Diaz of Gismodo writes that whiners should shut up about the iPhone 3G S upgrade price, I say screw you! You’re paying a premium just for owning an iPhone 3G S and you don’t see any problem with that?

I understand that no one forces me to get the new iPhone 3G S, and that if I’m not happy with the new pricing, I can always buy a cheap Motorola Razor, but that’s not the problem. The problem is that AT&T is butt raping us and no one seems to care.

Image Credit: BillShrink

  • The Pre just doesn’t “do it” for me from what I have seen so far. Iphone is great but definitely looking forward to what comes out of Android in the coming years. I honestly think there will be some very cool things that come out and can only come out of the openness of something like Android.

  • TJ

    You did pick the most expensive voice plan. You can cut that down $50 a month if you’re not a heavy caller.

  • TJ

    Actually, $60 a month.