The iPhone 3GS is one of the hottest gadgets in recent memory and seems like it should be a perfect gift for the gadget-lover on your holiday shopping list. But is it? If you don’t consider your options carefully, you could end up costing the person you give an iPhone to more than you spent to buy it.
Giving an iPhone as a gift is much more complicated than giving an iPod, due to the iPhone being a phone. Unlike the iPod, the iPhone requires a monthly subscription plan and you can’t (easily) get around that. Without a two-year AT&T contract, you can’t use the iPhone in the U.S. (unlocking aside).
So, if you’re considering buying an iPhone as a present for someone, make sure they have
- AT&T as a carrier; in this situation, there will likely only be a nominal activation fee and contract extension
- A cell phone contract that’s about to expire so they don’t have to pay expensive early termination fees (they sometimes cost $100 or more)
- No cell phone at all.
Even if you overcome this obstacle, you still may want to consider a gift other than an iPhone. Since the iPhone requires a minimum of a two-year AT&T contract of at least $59.99/month, buying someone an iPhone also means you’re requiring them to pay a minimum of $1,439.76 to use their gift over the next two years. A gift that costs the recipient almost $1,500 doesn’t seem ideal to me.
Of course, if you’re determined to give an iPhone and are feeling like a big spender, you could pay for the recipient’s monthly fees, too. That’s one way around the problem.
Chances are, though, most people won’t be giving $2,000 gifts this year. So if you want to avoid spending that much, or want to avoid causing cell-phone-contract complications for your friend or family member, skip the iPhone as a gift this year.
Maybe an iPod touch – with its roomy storage, App Store support, and very similar feature set to the iPhone – would be a better option?
