The falling cost of owning an iPhone in New Zealand
Updated January 2026: The original 2008 post on this site looked at the cost of owning a iPhone 3G. At the time, a New Zealander on average income could expect to spend 10% of their annual income feeding their iPhone habit. Today, it is a different story.
In 2008, owning an iPhone 3G cost around 10% of average income
In early July 2008, Vodafone New Zealand announced the first iPhone 3G prices. While monthly plans started at a manageable $80, the 1GB plan required for anyone serious about mobile internet was a hefty $250 a month.
Let's put that in perspective:
- Average after-tax income (2008): $27,921
- Annual iPhone cost (1GB plan): $3,000
- Percentage of income: 10.7%
In 2008, owning an iPhone wasn't just a choice; it was a major financial commitment.
The 2026 comparison: more for less
The fairest comparison today is to stick with the same provider. Vodafone rebranded as One NZ in 2023. For this exercise, we are looking at the base model iPhone 17 (256GB).
One NZ currently lists the handset at $1,700. When paired with the $85 One Plan—which includes unlimited calls, txts and data—the first-year cost (including a $99 deposit and monthly handset repayments) comes to $1,420.
- Average after-tax income (2025): $66,209
- Annual iPhone cost (Unlimited plan): $1,420
- Percentage of income: 2.1%
Key statistics: 2008 vs 2026
| Feature | 2008 (iPhone 3G) | 2026 (iPhone 17) |
| Monthly plan cost | $250 | $85 |
| Data allowance | 1GB | Unlimited |
| Annual cost (Year 1) | $3,000 | $1,420 |
| Inflation adjusted cost | ~$4,700 | $1,420 |
| % of average income | 10.7% | 2.1% |
The end of the duopoly
It is tempting to think these price drops happened purely because technology became more efficient. In reality, the 2008 figures reflect the peak of a high-priced duopoly between Telecom and Vodafone.
The turning point came in 2011 when the Commerce Commission stepped in to regulate mobile termination rates (MTRs). Before this, the incumbent players charged high fees for connecting calls to each other's networks, which made it nearly impossible for a third player to compete.
The regulation slashed these interconnection costs, effectively opening the door for 2degrees to grow its market share. As 2degrees has reshaped the market over the last decade, the 'duopoly tax' vanished. Data caps that were once measured in megabytes were replaced by the "all-you-can-eat" unlimited plans we see today.
Without that regulatory intervention, the iPhone might have remained a high-cost status symbol for much longer. Instead, competition forced carriers to stop making their margins on connectivity and start competing on value and service.
A shift in value and transparency
The figures show a massive shift. Not only is the phone five times more affordable relative to income, but the "bundle" has transformed. In 2008, 1GB was a ceiling that many users feared hitting. Today, the average New Zealander consumes 6GB a month without a second thought, backed by unlimited plans that include satellite connectivity for text and data in remote areas.
The most significant change is transparency. In 2008, carriers hid the cost of the device within expensive, opaque plans. Today the model is clear: you know exactly what you pay for the hardware and what you pay for the service. For the average New Zealander, the iPhone is an affordable daily utility rather than a luxury status symbol.
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