Reason I ask is I have a 4 year old iPhone 5s and it's honestly perfectly quick as day I got it. Since contracts are gone it's hard to want to pay for the phobe unsubsodized. If I had too I'd get a 5se today, but by time my phone dies I'm hoping a 5se 2 will be out.
Do you upgrade because of wants or needs? Do you lose money upgrading routinely and if so, what's your justification?
First of all, everyone loses money when they get a new phone. It's an
expense, not an investment. If you want an investment, buy AAPL, NFLX, QQQ, or SPY.
In the old days when handsets were subsidized, the costs were buried in the monthly service. Sure, your out of pocket expenses the day you got the handset were less, but you paid for it over the length of the contract. You always paid for it in one way or another.
Sure, your daily cost will be less if you spread out the total cost of ownership over a longer period of time, but $850 is $850.
Different people have different reasons for upgrading their phones. Some people simply want the latest and greatest.
Others might desire a specific feature like an improved camera, Touch ID, or Apple Pay.
And others might find that their old handset doesn't hold a charge very well or is running slowly with the latest operating system and applications.
For me, I'm not tied to a contract, so I could upgrade every year if I really wanted to. I usually upgrade every two years. I look at the new features on the recently released hardware and decide whether or not those are sufficient to justify the additional cost of ownership for the new device. Let's say I want a $850 phone and I think I can get $150 from Amazon, Gazelle, etc. for my old one. It's still $700 out of pocket. If I plan to own the phone for two years, that's about $30 per month or a dollar a day. So I ask myself, "Is it worth paying a dollar a day for this?"
It's the same question you should ask about anything you buy. "Should I have a $4 espresso drink 300 days a year? That's $1200. Is there something else I might want to use that money for? Toward a down payment on a house? A nice vacation in Mexico? Retirement?"