Well we don't live in a vacuum, so we have to look at the overall smartphone market when looking at costs. Right now, this is a lower cost option for Apple. I would think that since Apple has been selling phones for years at $750, many would consider it a reasonably priced option, and even a low cost option compared to other premium phones being offered by Apple and the competition.
You're right, given Apple's current offerings. I just wouldn't consider it a low cost option by any stretch. Rather, it's the result of Apple's limited offerings.
Are you factoring resale value into your calculation of cost of ownership?
I'm not. I find my phones to be not worth much after 3-4 years. Not from abuse, but just plain fact that a 3-4 year old phone has enough wear that anything I've had is rarely worth more than $50 resale. PLus I try to hold onto them for at least 4 years, which makes them even less valuable even if they were pristine.
Though, the more you pay for an iPhone, I think resale paints an even dimmer picture. Consider the # of iPhone X's for sale now at the $700-750 range on MR with Apple Care. What is that, $400-500 depreciation after less than 1 year? Not exactly a positive factor for looking at the "big picture cost!"
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I'll never understand people wanting a flagship phone, but not actually buying the flagship model. Let's amortize the increased price of the Xs over the Xr. Let's say the difference is $250. That's less than $0.35 (thirty five cents) a day over the course of two years. Why wouldn't you just get the Xs?
Even if you buy it outright, like I did, it doesn't make sense to save merely $250 when you look at how long you will keep the phone.
Sure, if your "technology subscriptions" were limited to iPhones. And only 1 for you, not another for the spouse, and/or older child.
Add Macbooks to the equation, which due to non-upgradeability, are trending towards being 2-3 year propositions, things really add up.
And then iPads. Luckily I have no need or desire for an Apple Watch.
If 35 cents a day is no big deal, I can give you my paypal account info and will gladly take 35 cents a day from here out, from you and others who you convince that it's not much!