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Buying a new shiny new electronic device doesn't necessarily just mean shelling out for the device itself. It also might mean buying -- or perhaps even re-buying -- new accessories, software or added services.
For example, customers who bought the first iPhone and upgraded to the iPhone 3G lost out in several ways. In addition to the cost of the iPhones, their cases usually didn't fit the more rounded iPhone 3G. Soft silicon skins sort of fit, while most hard cases would not -- it was hit and miss -- and some old cases caused screwy behavior with the slight changes to the proximity and ambient light sensors on the new iPhone 3G.
Even hapless handbag fetishists on The Purse Forum ran into problems after they bought the iPhone 3G -- their previous $250 Louis Vuitton monogrammed canvas pouch cases were too tight for the slightly thicker (yet more rounded) iPhone 3G models. So yeah, even those who have an extra $250 for a case get hit with unplanned costs when it comes to new device ownership.
For the less well-heeled tech buyer, numerous other problems and pitfalls remain -- as well as some welcome benefits.
The Headphone Dilemma
The original iPhone had a skinny, recessed headphone port, which meant that many headphones with standard sized plugs were too thick to fit the iPhone, rendering them impossible to plug in. Some users -- including me -- took razor blades to trim the plastic from their favorite headphones or speaker systems to make them fit. Then some third parties started making mini plug extension adapters, and while the cost wasn't particularly painful, US$11 is still $11 more than anyone wants to pay in this situation.
Fortunately, Apple (Nasdaq: AAPL) rectified the problem with iPhone 3G so that most every standard headphone jack could be used -- no more recessed ports.
Unfortunately, this doesn't mean that all headphones will provide all functionality -- even Apple-manufactured headphones. Remember the sweet new Apple In-Ear Headphones with Remote and Mic that Apple CEO Steve Jobs proudly introduced in October of 2008? The $79 ones that are "engineered for superior acoustic accuracy, balance, and clarity"? While the headphones have received largely positive reviews, especially compared to the lackluster standard earphones that ship with iPods, they've got spotty compatibility with iPods and iPhones -- great for the latest generations of iPod touch, iPod nano, and iPod classic, but limited compatibility with iPhone and iPhone 3G. Basically, the mic isn't recognized by many older iPods, including the fairly recent first-generation iPod touch. With the newer iPhone 3G, the super-handy remote volume controls are ignored.
Apple even has a support document that details which current earphones support the current iPods and iPhones. "Functionality of wired headsets can vary between iPod and iPhone models. All headsets work for audio playback, but some headsets have features such as a mic or switches to control iPod functions which work only on later iPod and iPhone models," the document reads. Basically, if you invest in a good set of multi-functional headphones, there's no guarantee that they'll work completely with new devices -- even from the same manufacturer.
For older generations of devices, this is not surprising -- heck, Apple has delivered more than three dozen versions of iPods over the years -- but wow, the In-Ear Headphones are only marginally compatible with Apple's flagship device, the iPhone 3G. Few consumers can be expected to sort all this out -- and more than a few were likely disappointed in their investments.
What About Those Speakers?
If you're a consumer who likes the idea of the iPhone being your all-in-one cell phone and iPod, what happens when you bring it home and plug it into your nice set of bookshelf PC speakers in your kitchen or bedroom? If they're not shielded from TDMA cell phone interference, you're going to get crackling static that can ruin even the hardest rock songs. The solution? Turn your iPhone to airplane mode -- a royal pain in the butt that stops you from receiving calls -- or shell out for a new set of speakers that are iPhone-compatible.
To be fair, this is most definitely not Apple's fault -- most every MP3-playing cell phone has the same problem. But for a lot of consumers, it's still a hidden new expense and/or irritation.
Got a Dock?
Apple's iPod and iPhone docks have similarly been a moving target. The biggest frustration and extra expense here comes from the transition from the iPod Universal Dock with an S-video port to the Apple Universal Dock without an S-video port. While the docks will hold a variety of iPods and iPhones -- for example, the latest iPods and iPhones ship with plastic inserts that fit the base of the Apple Universal Dock -- the video out made a huge leap in expense.
S-video cables are cheap, and users that had the third- and fourth-generation iPod nanos, iPod photo, and fifth-generation iPods could simply use an S-video cable to connect their iPods via the dock to their TVs and enjoy video on a bigger screen.
Then Apple ditched the S-video option in favor of component and composite AV cables that work with the both the iPod Universal Dock and Apple Universal Dock. The compatibility is cool -- the price is not. The Apple AV Cables will set you back $50, and there are no cheap generic brands available. Trying to figure out how to get your iPod or iPhone to your TV? Try Apple's HT1454 support document.
Of course, some of the older docks, even the first-generation iPhone dock, won't charge the iPhone 3G. And remember Apple's (discontinued) iPod hi-fi boom box with the built-in dock? Won't charge the iPhone 3G either, and this is a problem that's been extended to many third-party docks and charging cables. The solution? Shell out more cash for new docks and cables.
The Rise of the USB Cable?
While problematic and shifting docks have been a problem, Apple has seemed to settle on its current Apple Universal Dock -- so it might work great for new devices in years to come. In addition, Apple has also seemed to standardize on the ubiquitous USB cable to power and sync its devices (as opposed to FireWire or any other proprietary cables and chargers).
In fact, the USB cables that shipped with two generations of the iPhone, a second-generation iPod touch, and an iPod nano all work fine when mixed and matched -- and with any of the USB plug-ins that came with them. This type of consolidated product manufacturing obviously benefits Apple, but it's darn handy for consumers, too.
If you use your iPod long enough to wear out its built-in battery, nice work! When it dies, though, you've got a couple of choices: order a replacement battery and kit that'll help your crack the case and install the new battery yourself ($20 to $40, typically, plus a void on the warranty if it still exists), or let Apple do the repair ($49 to $79). There are some third parties that'll replace batteries, too, for prices somewhere in between the do-it-yourself and Apple options.
Songs and Videos and Apps
Most iPod and iPhone users set up and sync their iPods and iPhones to PCs and Macs. In years past, Mac/PC syncing was the only way to get content on the device; now, iPod touch and iPhone owners can buy songs and apps directly over the air from the Apple Store -- no Mac/PC required. That means users who are out and about can use their devices for weeks -- or indefinitely -- without ever syncing with a Mac/PC. While fairly unlikely, it means that some guy on vacation who buys a couple of new albums online could lose those songs if his iPod or iPhone crashed and needed to be restored -- or was dropped in a mud puddle or stolen.
If the songs aren't backed up on a Mac/PC or external hard drive, they can easily be lost forever.
A fairly common occurrence is a Mac/PC hard drive failure, where a consumer loses all his or her iTunes songs -- or the computer is stolen -- but the songs remain on an iPod. The question is how to get them off the iPod and onto a new hard drive. It's possible, but hardly intuitive. If a person replaces the hard drive in the Mac/PC and tries to sync the iPod to the new iTunes instance, most will likely lose their songs. It's a huge bummer that can cost a consumer hundreds, if not thousands, of dollars.
But if Apple keeps your purchase history in your account information, why can't you just re-download all your songs? Seems possible, right? But Apple doesn't offer that option, likely because the bandwidth, hassle and responsibility would be cost prohibitive.
Still, Apple does provide a solution if users are using iTunes 7 or later -- the Transfer Purchases feature. You've got to first authorize your new computer to recognize your Apple ID and your account information. When you connect your iPod, you'll get a warning screen that will let you "Erase and Sync" or "Transfer Purchases." Of course, you'll want to click the Transfer Purchases button. One note: This only works for items purchased from iTunes -- for ripped CDs or songs purchased from Amazon.com (Nasdaq: AMZN) or elsewhere, you'll be out of luck.
The same goes for TV shows and movies.
Now, if you experience a download error or some sort of corrupted file -- I once downloaded an episode of "The Unit" that was missing the last few seconds of the final scene -- Apple has been known to provide an account credit that would allow one to rebuy and redownload the song or video. Some people have had their Macs stolen or had problems with their Macs that required reinstalling Mac OS X and have reported that their pleas to Apple support had resulted in Apple letting them redownload their purchased music and videos. Others, however, have been given the cold shoulder. It's a worth a try, but it can hardly be counted on.
It all seems a bit draconian, but if you lost a CD, do any of the record companies simply give you a new one, even if you whipped out a receipt?
App Store Redownloads
Interestingly, any app that you purchase via the iTunes App Store that's tied to your Apple account is protected for redownloads. Lost your laptop? Not a problem, redownload the apps. Same goes for iPods and iPhones -- accidentally delete it? Not an issue for Apple, probably because this was a set of contracts Apple created directly with the app developers -- there's no middleman copyright holders or royalties that might need to be paid out for every "download."
Most iPhone service plans come with unlimited data packages, a nice feature that we can most likely thank Steve Jobs for fighting for when Apple partnered with service providers like AT&T (NYSE: T) in the U.S. Still, these unlimited data plans only work within their coverage areas. Travel too far, and ... uh oh.
"The biggest unexpected cost I've experienced as an iPhone owner is international data. I spend a week in the UK and end up buying too small of an international data plan. My bill for that billing cycle ends up being several hundred dollars more than I had expected," Raven Zachary, founder of iPhoneDevCamp and a contributing analyst for The 451 Group, told MacNewsWorld.
"Advice: don't buy international data unless you absolutely can't live without it. You'll probably end up using more than you buy. We're used to unlimited data here, so we're bad at restraint. Look for WiFi hotspots instead," he recommends.
$199 ... Really?
Of course, the biggest hidden fee is the way Apple, AT&T and retail partners like Wal-Mart (NYSE: WMT) advertise the iPhone. They advertise the price as $199 ... and the fine print shows the required two-year contracts and mandatory data plans.
"I think the biggest TCO issue right now is the cost of an iPhone at $199 plus monthly service vs. an iPod touch for $229 with no monthly service. You'll save $30 buying an iPhone, but end up spending that right away on the data plan for the first month. If you want to run apps but don't care so much about the phone itself, iPod touch is a better deal," Zachary noted.
The Cloud to the Rescue
In the future, many of these issues may be handled by cloud computing -- those ephemeral Internet-connected servers in the sky run by providers with big, super-cooled data centers. If you break or lose your device, the hardware is done for, but all the software investments are retained by the cloud.
"Say for example -- and I'm speculating here -- down the line, Apple could say, 'Well, anything you buy on iTunes we're going to sync a copy to the cloud so we know you own it. Therefore anything you own now is accessible and syncable all through a client fashion because we're maintaining this data in the cloud,'" Ben Bajarin, director of the consumer technology pracitice for Creative Strategies, told MacNewsWorld.
"The same thing could go for software. Whatever software you've bought is in the cloud -- or a license of it or a recognition of you as the owner is in the cloud. I really feel this is where we're going because we're starting to see these issues arise with consumers," he explained.
"This cloud-based model really seems to make a lot of sense. In the future, we'll see services and software that takes advantage of this -- but now the best solution is just backing up to a hard drive," he added.
Of course, Apple has been working to make it easier for consumers to back up all their data, including their precious family photos stored in iPhoto. Apple's Time Machine and Time Capsule solutions represent the key cases in point here.
Meanwhile, it turns out that with videos, at least, Amazon.com is already using a cloud-based model -- the company stores consumers' purchased videos in "Your Video Library," which lets you watch, download your video purchases, and attempt to manage your licenses. Unfortunately, Amazon.com's Video on Demand service is not compatible with iPods or iPhones (there are those pesky DRM issues at work here). Still, it's a glimpse into the future.
In Conclusion, Tech Love Is Gonna Cost You
Hidden -- or unanticipated -- costs are not limited to Apple, of course. Take the big three game consoles, for example. Buyers of the Nintendo Wii and Sony (NYSE: SNE) PS3 get built-in WiFi connectivity, while Xbox 360 owners are left out in the cold. To get WiFi, they have to shell out another $90 for an accessory antenna.
While many of Apple's products end up costing consumers more than they may have bargained for, at least they have options -- accessories for iPods and iPhones number in the thousands while other devices might only have a few dozen options.
Either way, with technology, there's always going to be two prices -- the price of acquisition ... and the total cost of ownership. Of the two prices, the latter is always larger.
