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The Emperor's New Phone

By Mike Krumboltz
Tue, June 10, 2008, 12:25 pm PDT

Steve Jobs knows a thing or two about marketing. The man could stand next to a rack of invisible clothes, and people would still ohh and ahh. Fortunately, Apple's founder and CEO skipped the iPantsuit and announced a new iPhone instead.

For techies, the big news is that this version will have 3G support, which allows for faster web surfing and downloads. For those who don't know a 3G from a TV, the new price was the main attraction. Whereas the original iPhone initially retailed for $599, the new one will start at $199. Sounds good, but as Buzz visitors are learning, it's wise to read the fine print.

Several articles point out that while the physical phone is much cheaper, data plans are now more expensive. According to the Machinest, the iPhone's exclusive service provider, AT&T, will raise its monthly rates by about $10 a month.

Still, with the lower price point, many folks are sure to hop on Apple's bandwagon. Searches on "iphone," "iphone 2.0," and "iphone price" dialed up big gains. But cost-conscious queries on "iphone data plans," "iphone monthly costs," and "prices for iphone plans" were also significant. Are folks wising up to bigger fees? Maybe so, but queries like "buy iphone now" indicate many of Jobs' minions are more than willing to pay up.

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