audiophiles, Rolex watches.
4) Brand name: for people who can't make decisions based on quality, a brand name is assumed to have high quality. Also, there is the issue of bragging rights.
5) high price: Some people like to buy things that are high price, to show that they can.
6) personal affections: Some people identify the purchase with their personality. customized colors, initials, appropriate style.
7) popularity: A "safe" choice, the assumption being more people means they can be less wrong. Wii vs. PS3 vs. Xbox 360, or HD-DVD vs. Blu-Ray.
8) uniqueness: There is also value when we buy something that is different than the common popular choice.
9) useful now: Consideration is given more to the present.
10) useful in the future: More value is given to the future.
The iPhone would be a good buy for most of the above reasons, except obviously cost-effectiveness (price too high, too few/limited features) and low price. There is also debate whether it will still cheap rolex watches be worth a lot in a few years, if nothing else, there is rumor for a lower-cost iPhone (about $300) coming out soon, which will erode a lot of the reasons given above. Note that the BOM (Bill of Materials) for the iPhone is only about $220, which means Apple will have a ridiculously high profit margin, even after amortizing the huge software development and advertising costs. Even more important is that Apple put most of their uniqueness efforts in the software, while using off-the-shelf hardware parts, which means if the thing takes off, we'd expect Apple to customize the hardware and save even more money, and make fake rolex watches the next generation iPhone lighter and thinner with longer battery life. (That is after the lower level iPhone come out, with the circuitry based on the cheaper nano iPod. metal look, glass for the touch screen, few buttons not ugly, thin 11.6mm!)
- finally a web phone that can easily surf most websites (most web phones are limited in this capability--that's why Apple's ad's emphasized this point)
- has iPod, mobile phone, and web appliance all in one mobile unit (but no GPS, no 3.5G type higher speed data networking)
- currently software is limited to what Apple allows you to have (but is expected to increase over time)
- no tactile or physical keyboard
- 2 megapixel cam, 4GB or 8 GB of storage, Bluetooth 2.0 with EDR and A2DP, WiFi that automatically engages when in range, and quad-band GSM radio with EDGE
- runs OS X with support for Widgets, Google Maps, and Safari, and iTunes (of course) with CoverFlow out of the gate. A partnership with Yahoo will allow all iPhone customers to hook up with free push IMAP email
I could continue on, but it's obvious beauty is in the eyes of the beholder.
"Worth it" is always subjective. It's not like it's an investment that you can sell for more money.
I have several friends with iPhones, and they just love them. They love the fact that they can surf the Web anywhere, and at high speed in most places. They seem happy with the AT service, and it does a great job as a phone. They like having their music where they go, without bringing a second device. They're still learning the other features but seem incredibly pleased.
On the other hand, I've heard other anecdotal evidence of people who had trouble getting the service activated, and people who didn't like the AT coverage. The first problem is probably over, now that the rush is done. The second will depend a lot on where you go.
So it's up to you. Most of the people who have it already are heat-seekers who want the technology first, and so just having it now makes it "worth it" to them. A lot of other people should wait a year for the second version, which will have the 3G connections working and presumably more storage.
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