The Cell Phone is Dead; Long Live the Smart Phone!

Iphone 3Gs
With Apple introducing the faster, more powerful and less expensive iPhone 3G S, I think it’s time to officially declare the cell phone dead.

Yup, the simple wireless device that lets you make and receive phone calls while away from the home or office looks to be going extinct. Why would anyone possess such a primitive device when they can have a mini-computer that can do pretty anything you could imagine…and make phone calls.

Over the past few months, one of the more interesting things I’ve noticed is how many people now have smart phones such as the iPhone or Blackberry. People who would never imagine to have to need a smartphone have become well-armed mobile warriors.

Borrowing a well-worn phrase, yesterday’s announcement by Apple is the “tipping point” for smart phones. At $99 for an 8GB model, the iPhone is so inexpensive that it’s almost irresistible if you want to do anything more than just make phone calls.

The key, of course, will be data plans because that’s where wireless carriers make their margins and profits. You could give away the iPhone but it wouldn’t matter if the data rates were sky high. In Canada, Rogers is hoping jump-start iPhone 3G S sales by re-introducing the 6GB for $30/month plan, while offering 500MB for $25/month.

Having used an iPhone for the past couple of months, 500MB is a lot of data unless you’re regularly watching videos, so the 6GB plan is sexy and attractive but not really practical. Mind you, paying an extra $5 for 5.5GB is a smart move. (Note: Existing iPhone customers with Rogers can switch to the $30/6GB plan but it involves accepting a new contract.)

Along the Blackberry Storm, Nokia E95, Android, and Palm Pre, we’re entering an amazing period for the smart phone market. With blinding speed, the devices are getting better and less expensive, making it increasingly attractive to climb on the bandwagon.

Before getting too excited, keep in mind the smart phone market is not unlike the razor/razor blade market. While you won’t cough up too for the razor, it’s the razor blade that you’ll keep paying for. The question is how much you’ll pay.

More: TechCrunch has a post on how it will cost iPhone users in the U.S. (AT&T) to upgrade to the new iPhone, while Gizmodo has a complete feature guide.

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7 Comments

  1. Posted June 9, 2009 at 2:27 pm | Permalink

    I don't have an iPhone now, though may get one soon. With the new ability to tether the iPhone to a computer, it will now be a lot easier to fly though those 6GB.

  2. Phil Simmons
    Posted June 9, 2009 at 3:53 pm | Permalink

    Oh, I don't know … staring at edata all day long at work, looking at edata at home, isn't there some private time for reflection where you can be in touch by phone if necessary, but not leashed yet tighter to this brave new world of ours? I think smartphones are just feeding the beast, give me a regular phone anyday.

  3. Dropper-Inner
    Posted June 10, 2009 at 12:36 am | Permalink

    I think that Canada needs some competition real bad. I was extremely disappointed at the microcell absorption by rogers, and that virgin is a reseller.. my last great white hope is pinned on globealive this fall, but who knows.. they'll probably just join the oligopoly club and keep the screws tight.. like seriously, 'the rogers revolution'… they're rolling out the year old g1? gimme a break! and this is the forward looking company up here! makes me want to go pay for system access fees in another country I tell you.

  4. Duncan S
    Posted June 10, 2009 at 5:14 pm | Permalink

    As you point out, it's the data plan that makes a big difference. It is worth noting that the total cost of ownership for an iPhone (device plus data plan and lock in but NOT counting voice minutes) in the US has gone from US$920 to $820. Which is better, but I am unsure that it marks a tipping point. If you want the iPhone 8MB with no data plan it is still US$499.

  5. Posted June 11, 2009 at 7:27 pm | Permalink

    Nice! I recently got an IPhone, and although this type of announcement pisses me off to a certain extent, I do love the idea of upping my data plan for a small fee from 500mb per month to 6gb. Only issue will be dealing with the "friendly" Rogers people to make this happen…

    Hope you and the family are well!

    • Posted June 11, 2009 at 8:28 pm | Permalink

      Vava,

      From what I've gleaned, what you miss out on by not getting the new iPhone is the faster processor and longer battery life. It seems that all the other features – e.g. cut and paste – will be available with the 3.0 upgrade.

      Mark

  6. Posted June 15, 2009 at 4:29 pm | Permalink

    Smart-Phone is dead, long life Personal Mobile Access !!!
    http://www.slideshare.net/strivan/personal-mobile...

4 Trackbacks

  1. [...] imagine…and make phone calls. Over the past few months, one of the more interesting things I’ click for more var gaJsHost = ((“https:” == document.location.protocol) ? “https://ssl.” : [...]

  2. [...] Read the rest here: The Cell Phone is Dead; Long Live the Smart Phone! | Mark Evans [...]

  3. [...] and in fact, … Gizmodo     Post from: Laptop Pimp Blog – Laptop Reviews for Laptop Whores The Cell Phone is Dead; Long Live the Smart Phone! – markevanstech.com 06/09/2009 With Apple introducing the faster, more powerful and less expensive [...]

  4. [...] recomendados A morte dos celulares; longa vida para os smarthphones Porque a Apple vence. [...]

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