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4Oct/0712

How to justify buying an iPhone in Canada

Last week I finally gave in to temptation. I drove to Buffalo and bought an iPhone. It's now unlocked and working just fine over wifi and the Rogers network.

Since picking it up I've had a ton of friends tell me they really want an iPhone, but can't decide if they should wait until Rogers release it here. I felt the same way until last week. So, here is how I justified buying an iPhone for use in Canada right now. I hope this helps...

1. The iPhone isn't (officially) coming to Canada anytime soon
Being the only GSM company in Canada, Rogers are guaranteed the iPhone. Back in June they announced they were in talks with Apple but said they were progressing very slowly, and today a friend of mine with contacts at Rogers told me talks are still progressing very slowly. Rogers have had 6 months to negotiate with Apple and they still don't have a deal. Makes me think it is very unlikely the iPhone will be out in Canada before the holidays, and it could be a much longer wait.

Why the big delay? The iPhone is so out of whack with Rogers product strategy that I think they will have real trouble striking a deal with Apple. For example, my wife bought a new phone from Rogers in the weekend. It came pre-loaded with a Rogers theme (some horrible red thing) and it was full of embedded links to things like the Rogers music store. Apple are most likely saying Rogers can't put anything on the phone, plus as I understand it Apple are asking for a rev share deal. The iPhone also promotes massive data usage, something that Rogers with their current pricing plans just aren't set up to accommodate. Finally, Rogers know that hacked iPhones from the US can only work on their network so they'll be getting all of the business coming from cross border sales anyway.

I'm guessing manages at Rogers Wireless are in no hurry to finalize a deal with Apple. As long as the competition aren't going to release the iPhone (which they can't, because everyone but Rogers is on CDMA) it's in their best interest to stick to selling blackberries and other handsets from manufactures who play nice.

2. Even without mobile data, the iPhone is a great device
I've been surprised at how the iPhone has fit into my life. I expected to be constantly checking email when I was out and about, but instead I'm using it on my wifi network at home more often. I'm finding it a great way to quickly check a facebook message, look up movie times, check the weather, do a wikipedia search, check my google calendar for the next day... all without opening my laptop. The iPhone is also just a lovely interface for text messaging, and has a pretty solid phone and camera. So, even without the mobile data, I think it's worth the $399.

3. If you're only checking email, Rogers sells 10MBs of data for $5
In Canada, your first 10MBs of data are cheap. It's the next 100 that'll bankrupt you! If you live in or around Toronto you can sign up to a Rogers Vision deal that gives you 10MBs for $5. This means if you're desperate to check email on your iPhone, you can - and it's cheap.

4. $399 US = $399 CND, and that's not going to last forever
Cross boarder shopping is as good as it's going to get with the 1:1 exchange rate. And Buffalo is only a 2 hour drive from Toronto.

5. And finally, if you don't get on the iPhone product release bandwagon now, you might never
Yes, Apple will release a 16GB iPhone after the holidays. Yes, they will probably have a model with video and all of the other features people are demanding not long after that. But in my experience with all things Apple, if you wait for the perfect product you'll be waiting for the rest of your life. Get an iPhone now - enjoy it - and you won't feel so bad about upgrading in a year ;).

Note: Having written this post I feel like a cross between a raving Apple fan boy and a sleazy PR exec. Disclosure: I did not get paid to write this ;).

Comments (12) Trackbacks (1)
  1. I’ve thought about doing this but I was wondering if there is any loss in either hardware or software functionality…

    the price is right though.

  2. Mine works just fine. Visual voicemail is the only feature I can’t get working – but I haven’t tried very hard.

    Obviously the unlimited mobile data doesn’t work so well in Canada ;).

  3. Your article regarding the iPhone is very interesting. It leaves me wondering whether Rogers Wireless actually benefits from delaying the “official” launch of the iPhone in Canada.
    in Fact, one could conclude from your comments that the more iPhones are purchased by Canadians and used unlocked on Rogers Wireless network, the longer it will take for the pressure to mount on Rogers to come to some sort of agreement with Apple. This might also explain why there have been reports of US Apple Store employees giving Canadians a hard time when they purchase an iPhone. It could be that Apple, realizing that a substantial number of the 250,000 (?) iPhones sold but NOT activated on the AT&T network ARE in fact headed to Canada, wants to stem the flow because Rogers “wins” by stalling. Since the iPhone is “GSM only”, Canadians are still “hostages” to the only show in town: Rogers Wireless.

  4. Thanks for stopping by Ray. I couldn’t agree with you more. The incentives for Rogers to sign a deal with Apple are very low.

  5. Rogers also has a 1GB PC Card data plan for $65/mo. that’s available upon request. So it’s still more expensive than the AT&T plan, but it’s a whole lot better than what we’re used to.

  6. Hi Marc.
    You bet – that looks like a great option if you want more data. I’m happy with my 10MBs per month at the moment. I think it’s costs me about $6.66 ($10 less 33% discount for having a bundle). I’d be happier with an unlimited plan though ;).

  7. Hi,

    I am planning to visit Buffalo and buy iPhone. Can you please guide me where to go and what to do/not do on border :)

    Thanks.

  8. Hi Sam,
    The Apple store in Buffalo is in the Walden Galleria…
    http://www.apple.com/retail/walden/week/20080210.html

    Good luck!

  9. did you have any trouble buying the phone being a canadian resident? did they know you were taking it across the border? and did you have to pay customs? i heard at apple stores you can only use a credit card and they turn you down if you are a canadian resident.

    thanks!

  10. Hi Ben,
    I used a Canadian credit card and gave them a Canadian post code when they asked. Strangely, I got a 5 minute lecture about voiding my warranty if I hacked the phone but they still sold it to me. That was 5 months ago now though so things might have changed.

  11. thanks for the reply!

    ive got about $600 saved for my iphone now. but i think ebay is the way for me. im a little nervous about it, i really dont want to get scammed. Hopefully i can find a trusted seller of an 8gb iphone for under $500!

  12. Good luck Ben. It’s a great phone. Hope you enjoy it.


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