Music: Amazon MP3 vs. iTunes

The iPhone has iTunes and the G1 has an application preinstalled called Amazon MP3, Amazon.com's digital music download store.

Amazon many not have as big of a library of content to choose from compared to iTunes, yet. But the chief advantage Amazon has over iTunes is music is a bit less expensive and music tracks don't have digital rights management (DRM) on them. That means anything you download to you G1 you can play on your iPod, Zune, or transfer to your PC - no hassles.

There was no mention of it today, but one can only assume that video content, as with music content, will be also be accessible through Amazon's Web-based download service.

Features: G1 vs iPhone

G1 = Touchscreen, QWERTY keyboard, Internet access via 3G and Wi-Fi, additional content via Android Market, music from Amazon, built-in GPS, and "compass" for easy navigation, instant messaging, push-email, locked Sim card, Web browsing.

iPhone = Touchscreen, virtual QWERTY keyboard, multi-touch gesture support, Internet access via 3G and Wi-Fi, additional music and applications via iTunes and App Store, built-in GPS (second-gen iPhone), Visual Voicemail, multi-touch gesture support, Microsoft Exchange support, push-email, locked Sim card, Web browsing.

Cost

The overall two-year cost of owning a $200 iPhone is $2360 (unlimited texting). The cost of owning a G1 with an identical texting plan is between $1620 and $2460.

Here is the breakdown:

The T-Mobile G1 will run you $180 with two-year contract - add $25/month for an unlimited data plan (which includes unlimited Internet usage and limited messaging) or a $35/month plan for unlimited messaging. A basic T-Mobile voice plan range from $30/month (300 minutes) and $60/month (1500 minutes). T-Mobile says in order to purchase the G1 you must also get a "qualifying rate plan." T-Mobile didn't get back to me on what a "qualifying rate plan" for the G1 is.

On the other hand Apple's iPhone will run you $200 (8GB) which also requires a 2-year contract. The rate plan will set you back basic rate-plan is $70/month (which including unlimited Internet access). For another $20/month you can get unlimited text messaging.

There is too much we don't know about the device to make any comprehensive comparisons. One big variable is 3G coverage and how comprehensive T-Mobile's network is. That was a big deal for people considering buying and upgrading to the second generation iPhone.

Network speed and other details we'll just have to wait and find out about when the G1 launches next month.