Nexus One vs Droid vs iPhone 3GS vs Palm Pre (PRICE WARS)

A few weeks back, when details and rumors about the Nexus One were starting to dribble out, we did a technical specifications-only comparison between it, the iPhone, and the Moto Droid (click here for a refresher).

Since then, Google announced complete details about the Nexus (exemplar, superphone in Google speak) — specifically, that you could buy the phone unlocked directly from Google for a hefty US$529.99, or through T-Mobile for only US$179.99 plus a two-year contract. Which got us thinking: how do those numbers compare with the competition?

As you can see from the chart below, we did a total-cost-of-ownership comparison of the Nexus, Droid, iPhone, and Palm Pre — the current “must-have” handsets of T-Mobile, Verizon, AT&T, and Sprint, respectively. We looked at the phone cost with and without a two-year contract, as well as the monthly costs of both an average plan and one with unlimited calling/texting/data.

Once you get past the sticker shock of “I’m spending THAT much for phone service in twenty-four months?!?”, it turns out the Pre and Nexus have the lowest TCOO on the 450-500 minute plans. Now, while these are important factors to consider when getting that smart phone du jour, they’re not the only things to consider. Verizon’s higher total price, for instance, comes with a larger and more reliable network — AT&T, while having the single hottest phone (and a gazillion apps for it) recently admitted that yeah, their 3G network is still the pits in some locations. Likewise, the Pre’s attractiveness, both feature- and plan-wise, is tempered by lack of apps (yes, compare to other offerings)

Update #1: Table above is corrected to reflect that Nexus One is available on T-Mobile with 500 minutes plan only, before we assumed that it’s possible to upgrade to the higher minute plan.  After going through ordering process, 500 minute plan is the only option. (thanks Andrew)

Update #2: Initial comparison was made among 900 minute plans but since Nexus One is available on 500 minute plan we updated table above.

Update #3: Kenny in Comments pointed out that: “You could use the device with the Even More Plus Plan Unlimited, which is $79.99/month, but you have to pay full price for the device. Then in comes out to $529 + $79.99*24 = $2448.76 beating everybody up there. ”   This is based on the fact that you can get unlimited $79.99 plan from T-Mobile if you bring your own unlocked device.  Looks like that is the best deal.

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