iPhone X Another way to look at iPhone Prices

Phone Junky

macrumors 68000
Oct 29, 2011
1,530
2,407
Sunshine State
Nice video. Neat graphs
3 things:
1.What makes $1 per day the magical mark to achieve?
2.With the upgrade programs, people aren't looking at 'cost per day', they're looking at actual payment per month. If they can afford the monthly payment, that's all that matters to them.
3. You're posting this in an Apple-centric forum where next week people are going to start posting about next years iPhone. They almost always want the latest and greatest.
edit: I stand corrected. Looking at the iPhone forum page I see there is already a 2019 iPhone thread going)
 

x-evil-x

macrumors 601
Jul 13, 2008
4,772
2,583
Nice video.
3 things:
1.What makes $1 per day the magical mark to achieve?
2.With the upgrade programs, people aren't looking at 'cost per day', they're looking at actual payment per month. If they can afford the monthly payment, that's all that matters to them.
3. You're posting this in an Apple-centric forum where next week people are going to start posting about next years iPhone. They almost always want the latest and greatest.
I see a lot of change about to happen with upgrading not just apple phones but all phones. The price these are at and the level of performance I expect a decline in upgrades.
I really dont think anybody will see these phones now in 3 years and say they are slow. Its not like an iPhone 6+ that was a horrible phone for performance.
I am jumping of the yearly upgrade plan as I think its ridiculous spending 600$ a year to get a new phone you dont need for small upgrades.
Ill only upgrade 2+ years out if there are deals going on.
 

KrisYYC

macrumors member
Sep 26, 2017
68
48
Even though I use both iOS and Android, I don't balk at Apple's prices on the iPhones. I think Apple can charge a premium over Android devices for two big reasons:

1. They have brick and mortar stores that you can walk in and buy an iPhone in person, get customer service should you need repair or replacement or return instead of having to mail your device to the manufacturer.

2. Longevity. Thanks to software updates that are sent out to every iPhone going back 4 or 5 generations it's completely feasible to get at LEAST three years of reliable use out of an iPhone assuming you bought a reasonably current model. Spending $1000 for the latest iPhone hurts in the moment, but in the long run may actually be cheaper than having to replace your Samsung or whatever in half the time. The only Android phone that comes close to this is the Pixel line.
 

kasakka

macrumors 68020
Oct 25, 2008
2,079
763
This is really just hiding the cost by making it seem like a smaller number, similar to how people don't feel a monthly payment of say 30-50 is that high. If you instead split the price to how much the phone costs per year the figures don't look all that appealing compared to less expensive phones. So for an iPhone XS that costs 1200 euros:

  • 1 year: 1200€ / year
  • 2 years: 600€ / year
  • 3 years: 400€ / year
By comparison my current Android phone at two years has been about 250€ / year and if I didn't desire the latest and greatest could probably go a year or two more before battery life becomes an issue. To get to that 250€ / year level you would have to keep the iPhone XS for 5 years. Entirely doable in terms of performance but you probably have to include the one time cost of replacing the battery in there.

I plan to get about 3 years from my iPhone XS, of course depending on how used prices develop and what kind of developments the next gen iPhones introduce.
 

tks900

macrumors member
Sep 13, 2016
90
78
Great video! One question: Could you give us a number indicating how much longer I would have to keep my XS when compared to the XR and pay the same price per day? (Hope the question is clear ...)
 

riteshritesh

macrumors regular
Mar 18, 2016
106
58
Mumbai INDIA
Good Thread OP. Just what I was thinking on my way home last evening. I have been reading a lot of " iPhones are expensive. Are they worth it now." kind of responses all over the www. My analysis is that, the people who need the latest and the greatest and are affected by costs, will switch over.

For someone like me, who needs iOs because of the comfort level and other factors and no intention of changing the Os and still feel that new phones are a tad expensive, they will settle with older phones if they need to change or extend usage of their current phones ( like I have done) till they can't hold it anymore. I am still on my 3 year old 6s and will be changing my battery to make it last another 3 years :) ( if I can). I am past changing my device every 2 years like I used to do earlier.
 

maflynn

Moderator
Staff member
May 3, 2009
66,665
33,521
Boston
This is really just hiding the cost by making it seem like a smaller number,
Yup, Its an expensive phone, and its sad that they stoop to such tactics to trick people. I see the same thing from those questionable rental places where you can rent to own furniture, TVs etc
 

gurase

macrumors 6502
Oct 12, 2015
274
166
Cost per day/year/use/etc has always been a great way to look at the value of any item. The idea is that it’s often less expensive in the long run to buy quality items that last longer than it is to buy cheaper, disposable items.

That being said, I don’t think that necessarily justifies the high price of the XS on its own. There are already cheaper iPhones that can last just as long and be plenty usable. My 6S+ is at 3 years and runs just fine. So the 3+ year benchmark is nothing new or special to the XS.
 

GloriousAndrew

macrumors regular
Oct 20, 2017
151
212
Here is how I look at it:

I pay monthly through Verizon. Once I’ve paid 50% of the device I can trade it in for the next one next year. So in my eyes I’m really only paying $549.50 + tax for the 64 iPhone Xs Max.

*NO ONE REFUTE ME AND RAIN ON MY JUSTIFYING PARADE*
 

Mitsjke

macrumors member
Feb 28, 2015
59
125
Here is how I look at it:

I pay monthly through Verizon. Once I’ve paid 50% of the device I can trade it in for the next one next year. So in my eyes I’m really only paying $549.50 + tax for the 64 iPhone Xs Max.

*NO ONE REFUTE ME AND RAIN ON MY JUSTIFYING PARADE*
Actually you didn't pay $550 for an iPhone XS Max.
You rented an iPhone XS Max for $550 a year, since it's not yours.
So $550 vanished into air each year.
 

blairh

macrumors 68040
Dec 11, 2007
3,931
1,451
Here is how I look at it:

I pay monthly through Verizon. Once I’ve paid 50% of the device I can trade it in for the next one next year. So in my eyes I’m really only paying $549.50 + tax for the 64 iPhone Xs Max.

*NO ONE REFUTE ME AND RAIN ON MY JUSTIFYING PARADE*
There is nothing wrong with this. However it's a lot more expensive going this route versus purchasing up front or over time, and then reselling when you upgrade. Assuming your old iPhone works, you will always get good money for it years later. There is also little reason to upgrade your iPhone yearly IMO.
 

profets

macrumors 601
Mar 18, 2009
4,553
4,451
I've always upgraded every year by selling my previous phone and putting those funds toward the new phone.

For many years I've looked at the pricing in this manner - how much it would cost to own the phone for its year of use. Up until the Plus size phones and rising prices / currency fluctuations it was roughly $250 per year, or ~$20/month. I'd basically budget $20/month and then come September I'd use that $ and the sale of the previous phone to pay for the new one.

Past few years though that monthly cost has gotten much higher (I'm in Canada with the exchange rate affecting it as well). For example, the 7 Plus cost me ~$1200 incl sales tax. I sold it one year later for $900, and then the X cost me $1500 with tax. That was a $600 upgrade. With these prices I'm going to do this less frequently - a 256GB XS Max for example would be $2000 CAD incl tax. If I sold my X right now, maybe for $1000, it would be a $1000 upgrade.
 

Ortiz83

macrumors 6502
Mar 9, 2018
429
234
I’m fine with paying $1,450 every year for 2 new iPhones. Why wife is happy and so am I with our latest phones. Been upgrading to the new one since the first iPhone. I usually buy the iPhones in full but trying to sell them at the end of the year is getting old. They sell but don’t snag to deal with it anymore. Might as well just do the upgrade program with ATT and pay 12 months ahead for each phone. Then again once the new one comes in. Next year I’ll have to get my son the latest phone as well since he will be of age for a premium phone. Thank god we are only a family of 3.
 
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nrvna76

macrumors 65816
Aug 4, 2010
1,064
1,073
or you could get the most expensive option.. a 512 iPhone XS Max for $2.30/day and have a new phone each year..

Actually you didn't pay $550 for an iPhone XS Max.
You rented an iPhone XS Max for $550 a year, since it's not yours.
So $550 vanished into air each year.
The same discussion in every thread. And, the complete convolution of the differences between own, rent, and lease is astonishing.
 

rwestiv

macrumors member
Jul 7, 2008
55
35
OP, thanks for putting that together. It shows what I've always felt.

I always get the newest phones for my family and I. We pay full price for all of the phones and we then donate the previous years phones to a local woman's shelter.

However my wife and daughter are not exactly...ahem...technology curious...and they actually get irritated they "have to keep getting new phones, I just figured out the one I have!". :rolleyes: However the continuity of IOS has greatly reduced those complaints. We used to have a mix of Apple, Android and Blackberry phones and there was always some kind of drama.

Getting back to the OP's post, if you're anything like me you use your phone a great deal. Between banking, investments, news, videos, fitness, photography, sports scores, keeping up with my kids, and about 20 other things, I use this little glowing slab all day every day. They value to me is much higher than the price I paid for the gold Xs Max 512s.

Not that Android phones don't do all of the above, but the fact that everything works and my family is happy adds even more value. As always, your mileage may vary.

GBA
 

SoUnfortunate

macrumors member
Oct 2, 2013
65
19
New York, NY
Thanks for this. My current phone is the iPhone 6S so upgrading this year made me feel like ok it’s about time.

I told myself I should upgrade every 2 years to get the S versions of the iPhone since they’d be more improved but ended up keeping this phone longer.
 
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Burstl

macrumors member
Original poster
May 3, 2011
37
6
Great video! One question: Could you give us a number indicating how much longer I would have to keep my XS when compared to the XR and pay the same price per day? (Hope the question is clear ...)
Its simple. To reach 1USD/day, you have to keep each phone exactly the number of days as the iPhone is priced in USD.

For example, the 999 USD iPhone XS will drop to 1USD/day in 999 days.

So, comparing all the storage options gives these results:

iphone_xs_64 = 999 iphone_xr_64 = 749 ; 250 days longer ; 33% longer
iphone_xs_256 = 1149 iphone_xr_128 = 799 ; 350 days longer ; 44% longer
iphone_xs_512 = 1349 iphone_xr_256 = 899 ; 450 days longer ; 50% longer

The comparison is not totally fair since the storage capacities for the XS and XR dont increase in a similar manner. However, for simplicity I compared all three tiers for each model.

Another thing concerning some comments in the thread:
In the video I don't want to justify the high iPhone prices. They are way too high for sure. Its just another way to look at the prices and put expenses into context.

You can think of it as follows: The amount of dollars you spend on daily things like coffee or beer is worth the amount of days you can use your iPhone assuming you keep them as long as you reach an effective iPhone cost of 1USD/day.

Example: You can buy an unhealthy Double Quarter Pounder with Cheese Meal at McDOnalds for 6.69USD or use your shiny new iPhone for 6.69 days instead. I would vote for the second option.
 
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tks900

macrumors member
Sep 13, 2016
90
78
Its simple. To reach 1USD/day, you have to keep each phone exactly the number of days as the iPhone is priced in USD.

For example, the 999 USD iPhone XS will drop to 1USD/day in 999 days.

So, comparing all the storage options gives these results:

iphone_xs_64 = 999 iphone_xr_64 = 749 ; 250 days longer ; 33% longer
iphone_xs_256 = 1149 iphone_xr_128 = 799 ; 350 days longer ; 44% longer
iphone_xs_512 = 1349 iphone_xr_256 = 899 ; 450 days longer ; 50% longer

The comparison is not totally fair since the storage capacities for the XS and XR dont increase in a similar manner. However, for simplicity I compared all three tiers for each model.

Another thing concerning some comments in the thread:
In the video I don't want to justify the high iPhone prices. They are way too high for sure. Its just another way to look at the prices and put expenses into context.

You can think of it as follows: The amount of dollars you spend on daily things like coffee or beer is worth the amount of days you can use your iPhone assuming you keep them as long as you reach an effective iPhone cost of 1USD/day.

Example: You can buy an unhealthy Double Quarter Pounder with Cheese Meal at McDOnalds for 6.69USD or use your shiny new iPhone for 6.69 days instead. I would vote for the second option.
Thanks! That’s quite impressive. So, if you buy the XR 64 and keep it for 2 years, you end up paying roughly the same per day as when you buy the XS 256 and keep it for 3 years. Certainly something to keep in mind before you make a decision. To be precise, you would have to factor in resale value, but then again it could be that you will get back roughly the same for an XR after 2 years than for an XS after 3 years. Bottom line: if you think you might be bored of your XR after 2 years, but are likely to enjoy your XS for 3 years, than the XS should be your choice.
 

phillytim

macrumors 65816
Aug 12, 2011
1,296
615
Philadelphia, PA
People, wake up - $1/day is NOT an acceptable benchmark, just because Tim Cook says it.

The ONLY reason these $1000+ iPhones continue record sales is for the same reason we ended up in the housing crisis - people are overextended credit & baited in with subprime monthly payments.

#SMH
 
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Ebok

Suspended
Aug 22, 2018
457
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Here is how I look at it:

I pay monthly through Verizon. Once I’ve paid 50% of the device I can trade it in for the next one next year. So in my eyes I’m really only paying $549.50 + tax for the 64 iPhone Xs Max.

*NO ONE REFUTE ME AND RAIN ON MY JUSTIFYING PARADE*
Or you can buy it for $999 and sell for $700 a year later.
[doublepost=1537531671][/doublepost]
People, wake up - $1/day is NOT an acceptable benchmark, just because Tim Cook says it.

The only reason these $1000+ iPhone continue record sales is for the same reason we ended up in the housing crisis - people are overextended credit & baited in with subprime monthly payments.

#SMH
I’ve noticed that this forum is not the general population. I read a bunch of forums and ppl on here make decisions on emotion (I need it because Apple says so and I can justify it someway!!!!) rather than logic.

$1100 for a phone is not okay when the top of the line iPhone was $800 2 years ago.
 
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