The iPhone 3G and its related payment plans to be launched in New Zealand on Friday are no more expensive than other cellphone plans and handsets available here, an independent analyst says.
The much heralded device, version two of the initial iPhone launched in the United States a year ago, will be available in New Zealand shops at 12.01am on Friday.
Vodafone today released details of the price of handset and its two-year contract.
To get the 8GB iPhone at $199 customers must sign up for a two-year contract at $250 a month, a total cost of $6000 for two years.
At $130 a month the same phone will cost $449 and for $80 a month it will cost $549.
The 16GB iPhone will cost even more, at $349 and $250 a month, $599 at $130 a month and $699 at $80 a month.
IDC telecommunications market analyst Tim Shepheard told NZPA the phone was "not overly priced".
He said the plan and cost of the handset was "comparable" to other plans in New Zealand, which made it expensive internationally.
The $80/month plan was "no more" than other plans and though that made the handset more expensive, $549 was "not unreasonable" for the iPhone, Mr Shepheard said.
The $250/month plan was an "all-you-can-eat type package" with 1GB of data which was the same as a "bottom-end desktop" computer.
It was not known whether a mobile phone user would need that much capacity, he said.
"The plans are comparable to other (New Zealand) data plans which, I think, we need to move away from.
"From a New Zealand perspective, it seems that this is Vodafone relying on the iPhone to sell the plan as opposed to shocking the market with a good plan."
A lack of competition was the main reason for New Zealand's high mobile phone prices, but the geographical terrain also made it difficult.
He predicted that despite the price the iPhone would still be popular and would see "good uptake".
"I can see people being prepared to pay $549 for the iPhone and getting a smaller plan."
But is it worth it? Mr Shepheard said he had not used the iPhone but knew many people who had and said it was "outstanding" for web navigation.
However, people in rural areas might find reception hard to get. The 3G network runs on a different spectrum to normal phones and currently has 64 percent coverage, Mr Shepheard said.
He said there were plans to increase the coverage and with Apple one of Vodafone's big customers it would not be long before rural coverage improves, he said.
The hype surrounding the launch of the iPhone crashed Vodafone New Zealand's website this morning.
New Zealand will be the first country to sell the new iPhone as part of a global roll-out.
Vodafone spokeswoman Libby Hay said there must have been "a lot" of interest for the website to go down.
She said the high plan price was to help "subsidise" the cost of the phone itself.
The $250 a month plan allows for 1GB, the $130 plan 500MB and the $80 plan 250MB.
Cancelling an iPhone plan will cost between $260 and $1050, depending on the plan and the length of time the phone has been held.