First and Foremost, HAPPY iPhone LAUNCH DAY MacRumors Family!!!
I'd like for this thread to serve as a sounding board for those who "primarily" own their phones outright like myself.
With that said, I've resisted the wave of pre-order fury and now launch day excitement over iPhone 11 & iPhone 11 Pro & 11 Pro Max. Here's how I was able to do so...
Apple will give me $600 for my Xs Max, that leaves a balance of $650 owed + applicable taxes (7% where I live). So let's just say I did decide to upgrade and join the annual upgrade crowd. Assuming I continue to get the Max 256 and assuming pricing stays the same @ $1250; here's what my cost would look like annually:
$1250 x .07 = $87.50 for tax; $1250 - $600 for annual trade = $650 + $87.50 = $737.50 that I would need to come up with annually if I want to fully own and do hassle free trading through apple.
Now what I said I was going to do going forward was upgrade every 3 years at the earliest. So again assuming prices stay the same and I go with the same model Max 256 @ $1250; here's what I came up with for myself: $1250 x 1.07 = $1337.50/36 (months) = $37.15 that I'll put into a savings account every month going forward for all future iPhone purchases.
So I could upgrade 3 times in the next 3 years and pay $737.50 x 3 = $2212.50 overall OR Keep my iPhone Xs Max and pay $1337.50 in 2021/2022. That's a difference of $875 I save by being content with my current device. Not life changing money but it's almost the cost of another iPhone 11 Pro and definitely iPhone 11 plus a few accessories.
Again HAPPY iPhone LAUNCH DAY to those that have upgraded!!! However, for those of us on the fence or staying put, I just wanted to bring a financial snapshot into the equation so as to have a more well rounded discussion on whether to upgrade or not.
First and Foremost, HAPPY iPhone LAUNCH DAY MacRumors Family!!!
I'd like for this thread to serve as a sounding board for those who "primarily" own their phones outright like myself.
With that said, I've resisted the wave of pre-order fury and now launch day excitement over iPhone 11 & iPhone 11 Pro & 11 Pro Max. Here's how I was able to do so...
Apple will give me $600 for my Xs Max, that leaves a balance of $650 owed + applicable taxes (7% where I live). So let's just say I did decide to upgrade and join the annual upgrade crowd. Assuming I continue to get the Max 256 and assuming pricing stays the same @ $1250; here's what my cost would look like annually:
$1250 x .07 = $87.50 for tax; $1250 - $600 for annual trade = $650 + $87.50 = $737.50 that I would need to come up with annually if I want to fully own and do hassle free trading through apple.
Now what I said I was going to do going forward was upgrade every 3 years at the earliest. So again assuming prices stay the same and I go with the same model Max 256 @ $1250; here's what I came up with for myself: $1250 x 1.07 = $1337.50/36 (months) = $37.15 that I'll put into a savings account every month going forward for all future iPhone purchases.
So I could upgrade 3 times in the next 3 years and pay $737.50 x 3 = $2212.50 overall OR Keep my iPhone Xs Max and pay $1337.50 in 2021/2022. That's a difference of $875 I save by being content with my current device. Not life changing money but it's almost the cost of another iPhone 11 Pro and definitely iPhone 11 plus a few accessories.
Again HAPPY iPhone LAUNCH DAY to those that have upgraded!!! However, for those of us on the fence or staying put, I just wanted to bring a financial snapshot into the equation so as to have a more well rounded discussion on whether to upgrade or not.
Nope! Tax free in Delaware.no sales tax?
I spend about $400 out of pocket every year on two new phones (myself and my wife). That’s $33/mo. There’s a ton of people who drink away $33 every other night, every weekend, or a few times a month. Or even people who have pets, a lot spend more than $33/mo in pet food, toys, amenities, and vet visits. There’s countless hobbies out there that cost more than $33/mo. Hell, I’ve spent more than $33 every single month on gas for my motorcycle on joy rides (non commuting), and nobody bats an eye. But tell them I buy new phones for myself and my wife every year, and people have acted like that’s completely irresponsible.
My $400 out of pocket after considering leverage on rewards credit cards and selling the previous year’s models. This is reason enough for me to buy every single year. $400 annually to enjoy new tech is a reasonably small price for a hobby. A healthy, safe hobby at that.
It's kind of funny when you think about how we each see things so differently, and I for one agree with your thought on this subject. If more people would take the same approach maybe prices wouldn't sky rocket so quick.Yes, happy LAUNCH DAY! I have been consuming a lot of reviews and I have to say this I have been feeling the itch to join in.
I like the way you've spelled this out. Let me offer another way I look at it - on a yearly cost basis. This has proven to also be helpful to compare to the new pricing marketing that Apple is really pushing hard through the Upgrade Program. (It finally all clicked for me when reading this editorial from Stratechery.) For the purposes of this simple exercise, I don't discount cost over time.
If you bought another phone today at $1250+tax, and held it until 2022 (3 years), the annual cost would be:
$1250*1.07/3 years = $446
If you used the iPhone Upgrade Program in order to upgrade every year, the first year's annual cost would be:
$60.33*12 months*1.07 = $775
If you kept upgrading after every 12 months, assuming prices stay flat, your total cost would be:
$775*3 = $2325
The difference between the iUP price and the outright price today after 3 years is $988!
Now, this assumes there's no trade-in happening, which I know isn't exactly your case but I wanted to generalize a little bit. Obviously starting with some trade-in value brings these figures a little closer together, but the trade-off is a one-time phone upgrade vs. a long-term annual cost hike.
This becomes more apparent if you consider owning phones for longer than 3 years.
4 years - $334 annual cost
5 years - $268 annual cost
When I did this kind of math for myself, I found it really compelling *not* to give in. I think that on a monthly basis, it can look appealing. "You mean for just $60/month I can have the latest new phone? $2/day? Pshh I spend $2 without thinking every day, let's just do it." But I think that seeing the yearly numbers has a different mental impact for most people.... which is obviously why it's not marketed that way so I'm not uncovering anything new here.
The last phone I bought outright was an iPhone 6, and after ~5 years of use and 2 battery swaps, my annual cost still came out to something around $180. In my case - and I know my logic won't appeal to everyone - but for me I am finding it hard to justify moving up to an annual cost that might be 2.5x higher. In 5 years my income hasn't remained flat but it certainly hasn't moved up 2.5x.
If more people would take the same approach maybe prices wouldn't sky rocket so quick.
Yea that's the point. I don't care about daily lattes but I like to have modern tech. Some would rather have coffee or whatever else daily. Now if you choose them all, that is definitely an issue.I’m also concerned about the annual numbers thrown around when they talk about a few bucks a day. They’re also not convincing me of anything with a coffee analogy. I hear them suggesting that I quit coffee to come up with the money. Nope.
I always ponder going to DE whenever I want the new iPhone but always think it won't be worth the gas and tolls and such.Nope! Tax free in Delaware.
Good I don't have the willpower, but I also don't complain about the price as I hand Apple more $$$.All I know, is it feels good to be holding the power by fully owning my device. I'm the one doing the dictating.
I've decided to vote with my wallet.
Especially when a phone is only one of the bunch of things with prices rising faster than wages.I agree, and while I'm no economist, I think we saw that in action with supposedly slow sales of the XS and XR and subsequent tweaking of the naming and pricing that followed. There's a finite limit to how high prices can go while wages have remained flat over the last 12 years of iPhone releases. Adjustments to that are likely slow but will become clear in hindsight a few more years down the road... maybe even this year will signal to Apple whether its found its ceiling/floor for pricing for now.