Is the iPod Touch the New XP?

Itouch-1
Amid all the excitement about the new 3G iPhone (arguably the best thing since sliced bread and the creation of the 64-ounce Double Gulp Slurpee), the growing reality is the economic model between Apple and AT&T means consumers will surely pay for the privilege of having an iPhone.

It may take a while to sink it but wait until AT&T raises its iPhone data plan again. Then, you’ll hear howls of complaints from iPhone subscribers that AT&T is being unfair and gouging people. By that time, I’m afraid, it will be too late.

So before you get too excited about buying a new iPhone on July 11, perhaps it might be pragmatic to think before you leap. Rather than buying a new, shiny 3G iPhone, maybe you should consider buying a Touch or perhaps a well-maintained iPhone 1.0 that will likely flood the market as many people upgrade.

A Touch will cost you about $279 for an 8GB model, $369 for 16GB and $499 for 32GB. Of course, it doesn’t come with a phone but if you want all the bells and whistles of the iPhone without the data plan, it’s a pretty good option. If you bought an old iPhone, you could get an inexpensive voice plan but stay away from the data plan.

Who knows, maybe the Touch will become the XP to the 3G iPhone’s Vista. Maybe once people realize the true cost of buying a new iPhone and fend off Apple’s marvelous marketing machine, they will realize the Touch or an iPhone 1.0 is a smarter option.

More: Gizmodo weighs in with a post suggesting the new iPhone won’t be that much more expensive over two years ($160) than iPhone 1.0. The big flaw Gizmodo is missing is the economic model has changed with the carriers now having complete control over pricing, which means they can raise prices any time they like.

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