Buy an iPhone? No thanks, I Nokia

Osei said his decision to return to a basic feature phone was all about costs. The iPhone and its plan of services are too expensive, he said. Osei, who is in the heart of his two-year contract with AT & T, the iPhone 3G has been stolen recently. But he said replacing it with a new one would cost too much. Instead, he picked up a Nokia 2600 for just $ 43.
NEW YORK--Collins Osei, who had bought an iPhone 3G last year, came to the AT&T store Friday not to buy the latest-generation iPhone 3G S, but instead he wanted to downgrade to a less expensive Nokia phone.

Osei, but the decision depends not only on the costs in advance by phone. He also said that he was tired of paying the additional $ 30 a month data charge is compulsory with the iPhone.

"The plan was too expensive iPhone," he said. "They made me pay $ 30 extra per month for data, and I really do not need the internet on my phone. So I went to a regular phone. And now I'm in a plan that costs $ 39.99 a month."

Osei might not be the sole off there by the high cost of iPhone service fee. Unlike the previous iPhone launch days, there was no line of people waiting this morning in the Times Square AT & T store hoping to get the latest iPhone 3G S. In fact, it appeared that more customers were leaving the store empty-handed or with other devices to come out with new iPhones.

The reason could be that the new generation of iPhone is only a gradual progress in terms of hardware in last year's model. The two main new phone is its higher speed and larger memory. Or perhaps more consumers have their new iPhones shipped directly to their homes.

However, poor people in the store of AT & T could also have something to do with the collapse of the economy. With the national unemployment rate of over 9 percent, some consumers are returning to buy expensive smartphones and expensive service plans. AT & T and Apple have worked hard to bring the entry cost of the iPhone to an affordable level. The new 3G iPhone starts at S $ 199 with a contract for two years, and last year, 8GB iPhone 3G has been reduced to only $ 99. But customers are required to sign contracts for two years for these phones, which will cost at least $ 1680 during the lifetime of their service contracts.

Peter Pham, director general of Billshrink.com, a Web site that helps consumers reduce waste from their monthly bills that sometimes takes a little of the consumer, whereas before you realize the full impact of tariffs service in their portfolios.

"Most people do not realize how much they pay for their services until they are around six to seven months in their contracts of two years," he said. "And then begin to realize that their bills are very high."

Most cell phone users in the U.S. not use all the services they pay, Pham said. His Web site of the company can analyze consumer phone bills and help them calculate the best plan for their usage patterns where they live.

Meanwhile, smart phones, like the iPhone, are still selling well. Analysts are predicting a great weekend to launch the new iPhone 3G S. Apple and AT & T is expected to sell over 500,000 units in the coming days. Apple sold off their phones and Preordenes days before launch and appeared to be held Friday morning in lines at Apple stores around the country.

But as the smartphone market matures and if the economy worsens, it will be interesting to see if consumers are demanding less expensive data plans for their companies. Or maybe some, like Collins Osei, simply return to their basic cell phones.