Google's Nexus One Phone: Cheaper than the iPhone?

Every time a new phone comes out, it’s time to evaluate your current situation and see if there is a cheaper option for your cell phone needs. If you are in the middle of a contract, of course you are better to wait until it runs out and look at what is available at that time. If you are not in a contract right now, you should look at the latest new phones and see if they may be cheaper.  

How the iPhone Saved Me Money

For instance, when the iPhone came out, the $500 price tag held me back from making a purchase. I was using a very old Nextel that someone handed down to me on a Sprint plan. But once AT&T subsidized the cost, bringing it down the $300 range, I found that the AT&T plan would run me about $70 per month, saving me $15 over my old plan. Under a two-year contract, that would be a savings of $360, putting me $60 ahead of the game. And I gained enormous features and benefits that I could not access on my old green screen, black text analog Nextel.  

A New Contender on the Market

Tuesday, a new phone, the Google Nexus One, came on the market. It made me think twice about my iPhone, which I dearly love. It is at my side every moment. I use it to listen to Internet radio while I work, play a quick game of Sudoku during a break, check my email away from home, get directions and turn-by-turn maps to where I am going and alert myself throughout the day for things I need to do. I use alerts to remind me it’s time to post to my blog, let the dog out, or get the kids from school. This way, my writing does not get me so carried away that I forget my other responsibilities.

The Nexus One does everything the iPhone does, and would probably be just as companionable. Google’s phone also has voice recognition features. Because it’s based on the open-source Android platform, there is a potential for many more apps to come out for the phone.  The pricing plans from T-mobile are very similar to those offered by AT&T as well. I’m already ahead of the game with an expired contract and having actually saved money over my previous phone plan.  Could the Nexus One save me even more money?

Cost

The Nexus One retails for $179 and is only sold online through Google. An unlocked version is $529, way beyond anything I want or need. Being unable to try out the phone is a problem for me. I’d like to touch it, see it and use it first. While Google does have a 14-day return policy, I’d still be paying for shipping, which really gets my goat. I don’t believe in paying just to try out a product.  

So if I waited until someone I know bought a Nexus One and tried his or her phone, it might still be a tempting offer. Looking at the T-Mobile plan, there is a potential for savings for you, but not for me, and here’s why…

Rate Plans

The lowest talk time I can purchase (for an individual plan) on AT&T is 450 minutes, more than enough for my purposes. The least talk time available through T-mobile is 500 minutes for $39.99 per month. AT&T charges $30 for unlimited 3G Internet and T-mobile charges $39.98 for the same service. This means I’m still on the better plan, saving $10 per month over the cost of the T-mobile plan.

But look at another scenario. What if you run a business and talk a lot on your phone? Here are other US rates to compare that may change your perspective:

AT&T Phone Rates (Unlimited Internet is always $30)

450 Minutes, $39.99

900 Minutes, $59.99

1350 Minutes, $79.99

Unlimited Talk, $99.99

T-Mobile Phone Rates (Unlimited Internet is always $39.98)

500 Minutes, $39.99

1000 Minutes, $49.99

Unlimited Talk, $59.99

You can see that the more you talk, the more you can save by switching to the Nexus One. If you need 1,000 Minutes, you’ll only break even on monthly plan but have the cost of the phone. However, if you need unlimited talk time, you can save $30.05 per month. That’s nothing to sneeze at. It would pay for the cost of the phone including tax and shipping in about six or seven months. After that, you’d be saving $30 every month by using the Nexus One.

How the Phones Compare

So, if you find the new phone can save you money, the next step is to evaluate the phones themselves and the networks they run on. The two phones are very similar in appearance, even on the home screens. They are both touch screen phones and operate in a similar fashion. Many new users had a little trouble learning how to use it, but described it as easy to use after just a few minutes on the Android operating system. The iPhone is already famous for its usability under its proprietary operating system.  

How the Networks Compare

Onto the networks…If you do unlimited talk and need to spend a lot of time on the Web, Nexus One may fall short of your expectations. In testing done by the gadget site Gizmodo in 2009, AT&T outperformed all other 3G networks consistently for speed. In addition, T-mobile has only been running a 3G network for two years now, so it makes sense that AT&T performs better. If you don’t spend a lot of time using your phone for the Internet, then this is a moot point and T-mobile may be the better choice for you.