One argument I see people using against the iPhone is the cost. Granted, $499-$599 is a bit pricey, but what really gets me angry is when people use the flawed argument that the total cost of owning an iPhone is “$2,600-$3,200” if you factor in the cost of the service contract. While that may be true, so what? Lets use some analogies:

• That new car you bought wasn’t $20,000, it was $200,000. You forgot to factor in the cost of fuel and insurance over the life of the car!
• That new computer you bought wasn’t $999, it was $10,000. You forgot to factor in the price of your ISP and electrical bills!
• That new flat-screen TV you just bought wasn’t $1,200, it was $8,000. You forgot to factor in the price of your cable box and service over the next 2 years!
• You really should stop drinking beer, it’ll cost you $5,000 over the next couple years!

See how ridiculous those arguments sound? Arguing that the iPhone will cost $3k is just as ridiculous. While the claim may be true, no one truly considers ancillary costs when making a purchase like this. It’s a disingenuous and dishonest argument used by people who are trying to find fault with this wonderful new device.

Not to mention the fact that no one is producing similar costs for rival phones in their arguments. I wonder what the TCO for a Crackberry is? I’d like to see that number compared to the iPhone’s. Maybe then we can start a decent dialogue about the iPhone vs. its rivals when it comes to cost.