How much money you actually safe by upgrading every second year instead of every year

[Burstl]

Hi guys,

If you ever wanted to know how much money you actually save when upgrading every second year instead of every year, checkout this video.

 

[cnotes2019]

Isn't it a given already

 

[MattXDA]

As already knew, not much at all is saved by not upgrading ever year. The depreciation is too high to not upgrade

 

[bufffilm]

It's one way to look at it.

But here's another: buy a phone, keep it for 3-4 years, then buy another and keep the old phone as backup (or sell it if you want).

Which scenario involves the least money spent per year? Extrapolate it over a 8 year period (like in the video).

Eye-opening, right?

People spend too much money on phones!

 

[Nik]

And you are always covered by warranty by upgrading every year.

You know what the easierst argument is for upgrading every year? Telling yourself that you dont smoke and therefore saved a lot of money anyway. This way you can always find it in yourself to buy the new stuff even though you dont need it. #irony

 

[rui no onna]

So anyone here actually living to 100+ years old for that $19,800 in savings?
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It's one way to look at it.

But here's another: buy a phone, keep it for 3-4 years, then buy another and keep the old phone as backup (or sell it if you want).

Which scenario involves the least money spent per year? Extrapolate it over a 8 year period (like in the video).

Eye-opening, right?

People spend too much money on phones!

Or you know, just buying a less expensive phone to begin with and keeping it until it dies.

 

[todd.kilby.7]

I'm on the AT&T next program. I was ready to upgrade from my 7plus to a 8plus for an extra $4 a month. Then I found out they would take away a $30 a month rebate I got for signing up for the next program a year ago. So if I upgrade I'll actually end up paying $34 more a month.

 

[rui no onna]

You know what the easierst argument is for upgrading every year? Telling yourself that you dont smoke and therefore saved a lot of money anyway. This way you can always find it in yourself to buy the new stuff even though you dont need it. #irony

That's fine. Funds permitting, I think people should be allowed to enjoy themselves. If gadgets give them joy, then great. I keep cars for 15+ years and brown bag lunches so I have spending money on books, comics and tech. And really, better tech than cigarettes.

I prefer to focus funds on the iPad rather than the iPhone, though. The iPad is my most used device.

 

[eyoungren]

Well, I saved a ton of money this year by passing on my five year old iPhone 5 to my son.

We don't upgrade every year (every 2 to 3.5 years) and we don't sell our phones. We keep them until they die or find someone in need of a phone.

Usually works out to save the person who needs a phone a lot of money - and we still get years of use out of it.

 

[bufffilm]

So anyone here actually living to 100+ years old for that $19,800 in savings?
[doublepost=1505427019][/doublepost]
Or you know, just buying a less expensive phone to begin with and keeping it until it dies.

I don't know when people started to assign a yearly expense for their phones.

These $$$-saved videos are a laff.

 

[rui no onna]

I don't know when people started to assign a yearly expense for their phones.

These $$$-saved videos are a laff.

Tech is a hobby of mine so I actually do have a pretty generous annual technology budget (gets spent on iPads for the most part). That said, I do have it mixed somewhat with other entertainment expenses so if there's an expensive vacation coming up, bye-bye tech.

 

[missbing]

I'm usually able to get at least $400 (not $200) after having a phone for 2 years, upgrading every other year is a lot bigger savings then what the video indicates.

 

[comptr]

If one wanted to save the most money they would own a phone for 23 months and sell it 1 month before the new one comes out if they bought on launch day and they could recover a reasonable amount of money or trade the phone in to the carrier if the carrier has trade in deals. You could get a reasonable amount of money back if you upgraded every year. It all depends on how much the carriers trade in deals are and how much you can make selling it your self.

 

[Apple-of-my-eye]

We've always been able to upgrade with a 2 year contract. I did fall into leasing one time, went from a 6+ to a 6S, Sprint had a promotion if you traded any working smart phone for discounted rate (traded an old Palm Pre). Even with the discounted rate, I said I'd rather do 2 year contracts.

Sprint brought back 2 year contract last year when the iPhone 7 came out, our son got his for $300. This year, on Apple's site, looks like you can get a X starting at $549 with a 2 year contract. To lease, it's $50/month... so after leasing for 12 months, it's already going to cost $50 more than the 2 year contract. I don't mind keeping a phone for 2 years, so with the $549 rate, it's like costing $225/year instead of $600/year to lease... and after the 2 years, I'll be able to keep the phone.

Granted, this works due to the 2 year contract rate, which most carriers don't do, and looks like you have to go through Apple to get the 2 year contract through Sprint, rather than Sprint's site..... but financially, for me, being able to take advantage of the 2 year contracts, makes much more sense than upgrading every year!!

 

[JoeyD74]

I buy a new phone every year and then pass the old phone down through my house, we have 5 phones. We get three to four years out of a phone

 

[bigjnyc]

I'm usually able to get at least $400 (not $200) after having a phone for 2 years, upgrading every other year is a lot bigger savings then what the video indicates.

And I’m able to get at least $600 (not $400) selling every year so it’s not that big of savings just like the video shows

 

[missbing]

So I just did my own mockup based on more realistic prices and the savings isn't that much in any of the 3 scenarios I put together. Maybe you'll save a lot more upgrading every 3 years. I normally upgrade every 2 years, but I think I may switch to every year based on this. I'll have to think about it.


This is based on selling at about launch.

This is based on selling in the second year a month or 2 before the new phone is released.

This is just if demand is lower in the second year.

 

[KittyKatta]

One thing you can’t ignore is “The Tim Cook Factor”

2014
$749 iPhone 6+ 64GB

2015
$799 iPhone 6S+ 64GB

2016
$869 iPhone 7+ 128GB

2017
$899 iPhone 8+ 256GB
$1149 iPhone X 256GB


At the beginning of the keynote they played Jobs beautiful words about contributing to the world with your art. And then Cook comes up and throws in a price hike to make that art even more beautiful. I know I buy every year so I’m part of the problem but seriously... you can let a little bit of air out of those profit balloons cant you?

 

[Burstl]

@missbing

thats why i made a general formula at the end of the video. there you can choose any resell values you want and you will see how the savings change accordingly.

 

[Ironman1964]

I'm on the AT&T next program. I was ready to upgrade from my 7plus to a 8plus for an extra $4 a month. Then I found out they would take away a $30 a month rebate I got for signing up for the next program a year ago. So if I upgrade I'll actually end up paying $34 more a month.

I have been in the next program for a couple of upgrades and have never had this happen. Was that a special promotion to get you to sign up?

 

[rui no onna]

I have been in the next program for a couple of upgrades and have never had this happen. Was that a special promotion to get you to sign up?

Carriers were giving $650 credit (over the span of 24 or 30 months, although you'd be stupid to choose 30) if you upgrade to the 7/7+ after trade in of (fully paid off) 6/6+ or newer. Pretty much free upgrade.

 

[BB8]

If you upgrade every year, why wouldn't you go on the upgrade program?

Something I am struggling to decide right now is how I want to buy the iPhone X. I am not entirely happy with the X as it is now and worry that I may want a new phone sooner than anticipated. Not sure if I should just go upgrade program.

 

[s.hasan546]

everyone has their vices. i don't mind buying 2 new phones every year (iPhone personal & android work phone)

 

[missbing]

@missbing

thats why i made a general formula at the end of the video. there you can choose any resell values you want and you will see how the savings change accordingly.

Didn't see that.