Analyst: iPhone cheaper than BlackBerry

Although the iPhone is seen by many as too expensive, it may still be cheaper than popular BlackBerry phones, according to the research firm Piper Jaffray. Analysts note that by choosing the right plan and phone, buyers can easily save on the cost of phones like the BlackBerry Pearl or Curve. Starting with the $500, 4GB iPhone, new AT&T customers must then pay another $36 as an activation fee, and sign up for a two-year contract; at a rate of $60 a month for two years, this amounts to $1,975. Matching AT&T's $80/month plan for a BlackBerry, the cost raises to $2,420, but this is still less than the cost of a Pearl ($2,430) or a Curve ($2,480).

These figures may explain Apple's sales expectations, as evidenced by the number of phones that should be in stock for launch: Piper Jaffray believes there will be as many as 10,000 iPhones at Apple's largest retail locations, with a total of a million or more units nationwide. A previous Piper report suggested that Apple would sell 200,000 phones in June, but extra stock may bolster this figure.

Filed under: Apple