If you are thinking about buying a smart phone, the next month or so may be the right time. Industry rumor has it that a price war is underway. We are already seeing $99 iPhones, and $79 Palm Pre. The manufacturers of the devices, and the cell phone providers are advertising the heck out of the fun and interesting look and feel of the newest generation of the feature-rich phones.

Some words of CAUTION: When shopping for a smart phone try not to be overly “wowed” by the great sale price, consider your total cost of ownership.

The portable device itself is one cost, and the network subscription is another cost. Smart phones, such as the Blackberry, iPhone, Palm, all require data services from the cell phone network provider to work. So, your $99 iPhone could end up costing $1,500 per year on your cell phone bill.

I was speaking with Nikilette Walker of T-Mobile the other day, and she agreed with me, but also recommends that you consider replacement cost of the device as well. When you buy a smart phone for $99, typically you will be under contract with the service provider for two years. If that phone is damaged, lost or stolen during that time, your replacement cost is going to be in the hundreds of dollars. An insurance plan from the provider for a few dollars per month is a good investment in most situations.

When choosing a smart phone, look at the network service available for it, and choose accordingly. Is it going to be used primarily for business or personal? Decide what features and functions are most important to you, like MS Exchange integration and international roaming for example, and choose the rate plan that comes with the phone that best suits your situation. It may be a good idea to shop for the rate plan… then choose a device that works with that plan’s provider.

- Bill

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Bill Bowman
Senior Technology Advisor
Centrend, Inc.

888-558-9550 x135