I remember when I first saw the prototype of the Apple iPhone. One word came to my mind. Stunning. It was a very impressive piece of equipment, gadget, computer, phone all wrapped into one. So when the newest 3G iPhone hits the street this Friday, will it be a big hit like the original was?

There are already several issues facing both Apple & AT&T.  First we have the Canadians who will not get the new phone because of their carrier which was trying to price gouge them. Second is the cost. Is the iPhone really half the price? Not really. According to this article which states:

The other drastic change is the iPhone’s price: $200 for the 8-gigabyte model, $300 for the 16-gig. Those are terrific prices for a machine with so much sophistication, utility and power; a year ago, an 8-gig iPhone would have cost you $600.

But the iPhone 3G is not really, as Apple’s Web site puts it, “half the price.” The basic AT&T plan — unlimited Internet and 450 minutes of calling — now costs $70 a month instead of $60 (plus taxes and fees), and comes with no text messages instead of 200. (Adding text messaging costs at least $5 a month more.)

True, iPhone 3G service now matches the plans for AT&T’s other 3G phones; still, by the end of your two-year contract, the iPhone 3G will have cost you more than the old iPhone, not less.

Also there is the issue of coverage. Though AT&T will expand the coverage area in the future, you may wish to check what coverage is available before you buy. AT&T has a map that you can view for all AT&T services here. Make sure to turn on ‘View 3G/ mobile broadband.’

There are improvements in voice quality, the GPS is better though it cannot provide turn by turn directions, and the look and feel is sleeker.

Now a question for you. How many of you iPhone users will toss the original and buy a new iPhone? Is the cost worth the faster connection speeds?

Comments welcome.

PS Mr. cheapskate here is still waiting for the Google phone. 🙂