Supply and demand

So now we're on to my third post about the HTC Desire and it's pricing - and let me tell you, things have certainly NOT improved.

My analysis of the situation (if it counts for anything) is that the networks have just realised exactly how popular this phone is going to be, and before you can say "KER-CHING!" all the price plans - on all the networks - have gone through the roof.

Would you like an example of this? Remember how I said that you could get the Desire for £10 per month if you were prepared to pay £164 up front for it? And then it changed to £15 per month and £226 up front? So now what do you think it could have gone up to? Have a look at this then...

So if you want to spend £25 a month on your HTC Desire, then T-Mobile would like to charge you £380 up front for the privilege! £980 over 2 years! Bearing in mind you can buy the Desire SIM-free and unlocked for about £375, this is not what I would call a VERY GOOD DEAL.

Anyway, my enquiries with Vodafone came to nothing as well - they wanted £30 per month (so these rumours of £15 per month over 18 months were somewhat exaggerated) and even threatening to leave Virgin didn't get me a deal better than £20 per month and £100 up front.

Upshot of all this then? Erm... well, it would appear that my financial wizardry has all come utterly unstuck over the last couple of weeks. To my mind, the HTC Desire can really only compete as an "iPhone killer" if it is substantially cheaper. If the prices put it into the same territory as the mighty iPhone, then it's going to have a hard time. Sorry, I did try to save you some money. Honest.

All change

So it took T-Mobile less that 24 hours to render my last post about the HTC Desire almost entirely useless - they've changed all their price plans.

So now the entry level tariff is £15 a month, not £10, and the handset price has taken a hefty hike. Instead of £164, it's now £226. So my previous calculations are all wrong. If you want an 18-month contract at £15 per month, the total cost to you is now £496. If you're prepared to put up with the phone for 2 years, then you can have 300 voice minutes instead of 100 and only pay £191 for the phone (total cost £551). These prices, needless to say, are still substantially lower than the iPhone, but they're not quite as marked as they were.

To throw another spanner into the works, I've had some quality time with the Desire's rival sibling, the HTC Legend - and let me tell you, that phone is quite something. Although the specs aren't quite as high as on the Desire, the interface and OS are identical and the big plus point is the beautiful aluminium construction. Add in the fact that it's smaller, more pocketable and cheaper, and there really is now a genuine contest for my affections. It is, however, exclusive to Vodafone, and only on a 24 month contract. It is only £20 per month though, and with a free handset (total cost: £480 for 100 minutes, 500 texts and unlimited internet).

From reading a few forums, people have been getting some very good deals on both phones by dealing with Vodafone's web relations team directly (getting hold of them is a bit of a convoluted process) so if I can secure either the Legend or the Desire for less than the standard prices, then I'll be ordering immediately. I'm awaiting their phone call any time now...

Paranoid Android

As you will already know, I've wanted an iPhone ever since they were first announced. I'm a massive Apple fan, but I've never managed to take the iPhone plunge - and the main reason is that the cost has always been an insurmountable obstacle. I've had mobile phones for the last ten years, and I've never - NEVER - paid more than £15 a month for them. I've had Nokia, Samsung and Sony Ericsson handsets, so I'm not particularly brand-loyal. I just can't bring myself to spend £30 a month (or more) on what is, essentially, just a phone.

However, I was starting to come round to the (fairly obvious) idea that if I wanted the Jesusphone, I'd just have to suck it up and pay the money - there's really no way round it. I was doing the sums to see how the different plans and upfront handset costs compared in terms of total cost over the life of the contract. The way things stand at present is that all three UK carriers (O2, Vodafone and Orange) offer their cheapest total package for £30 a month, on an 18-month contract. The handset cost for all three is £99, bringing the total to £639. For that princely sum, O2 offer you 100 minutes and unlimited texts, Vodafone give you 75 minutes and 250 texts, and Orange can let you have 150 minutes and 250 texts. Depending on how you like to use your phone (if you're a texter or a talker) then the choice is really between O2 and Orange (Vodafone don't seem very competitive in this price bracket).

If, however, you're looking at the smallest possible monthly outlay, then you need to be looking at O2, as they are the only ones who offer a £25 per month deal. But this is over 24 months, and the handset cost goes up to £149, bringing the total cost of ownership to a massive £749. Doesn't really seem cost effective to scrimp on that extra fiver a month does it?!

All of these calculations are based on getting the 8GB iPhone 3G, not the 3GS. Clearly if you want the better phone, then you're looking at between another £100-150 on top. You might think that you could do without the 3GS and live with the 3G, but bearing in mind the announcement about iPhoneOS 4.0 this week, and the fact that the 3G won't support a lot of the new features, then that more basic phone suddenly doesn't look like so much of a bargain.

So - you have a lot of decisions to make: how much you want your monthly outlay to be, whether you're getting the necessary amount of minutes and texts and how much you're prepared to spend upfront on the handset. For me personally, the £30 18-month contract on O2 would be the sufficient for me, as I don't make many voice calls but I do text a lot. However, knowing what we now do about OS4.0, I'd have to get the 3GS and not the 3G - so total cost £738. Of course, there's a new iPhone in the pipeline due to surface in about June or July, so it would probably be prudent to wait until then. Perhaps the 3GS price will become the entry level model and the price will drop, or perhaps the new handset will have some great new design or features that make it a must-have. So what's a potential iPhone purchaser to do, bearing in mind all these factors?

Let me tell you my current thinking - don't get an iPhone at all. Get an Android phone instead.

The new HTC Desire is a phone that matches the iPhone on a lot of levels, and in some ways surpasses it. It may not be made by the mighty Apple, but having done the research it seems just as good if not better. For a start the screen on the Desire is a 3.7" 800x480 pixel AMOLED. Compare that to the iPhone's 3.5" 480x320 TFT. The Desire's camera is 5MP as opposed to the iPhone's 3MP. The Desire is packing a faster processor and more RAM than the iPhone. Other than that, they both have accelerometers, digital compasses and assisted GPS and are both the same size and weight. Hmm, iPhone - you're suddenly not looking so clever.

Software-wise, the Android operating system is open-source, customisable and supports true application multitasking out of the box.

However, where the iPhone is, of course, a winner is in regards to its App Store. Yes, there's an Android Market, but at the moment it's really not in the same league as Apple's. But, as it currently stands, all my regularly used apps - Wordpress, Evernote, Shazam, eBay, Last.fm, Spotify, Facebook - are already available on Android, with the only exception - Dropbox - being on its way in the coming weeks. What you lose in apps, you make up for in Google integration. As a heavy user of Google's products - gMail, calendar, contacts, reader, Picasa, Youtube, maps - this is a definite bonus. And with the Android Market expected to increase massively over the next 12 months, I can see the gap between the two offerings becoming much narrower.

And that brings me on to the price - what's all this talk of Android? Why bother? All things being equal, just get the bloody iPhone. But things are most certainly NOT equal.

If I want my 100 voice minutes, unlimited texts and unlimited internet (as offered by O2) then T-Mobile have quite the tempting offer. The upfront handset cost for the HTC Desire is £164, and then the monthly tariff is either £15 over 18 months, or £10 a month over 24. Total cost over 18 months £434, or £404 over 24 months.

Let me reiterate: 100 minutes, unlimited texts, unlimited internet, 18-month contract. Total cost of ownership for an iPhone 3GS on O2 = £738. HTC Desire on T-Mobile = £434. £164 for the handset upfront as opposed to £249. £15 a month instead of £30. A saving of £304 in total.

As the youth of today like to say - NO BRAINER. Android here I come.