Which iPhone should you buy? Should you buy an iPhone at all? If we do decide to buy one, which one would make most financial sense? These are some questions that popped up in our household recently.
The reason is simple, Mrs CF has quit her job too. She currently has a company phone and will loose it shortly. I’m still holding on to our old Windows phone (yes, I’m a digital dinosaur!). By the end of the year, Microsoft will stop supporting it’s operating system. This does not mean the phone is useless but I’ve already encountered many issues with apps no longer working, or not being available at all. This is especially an issues with banking apps, which are now required (read mandatory) to be able to move money around. So it’s time for new phones in the Cheesy household.
Why buy an iPhone?
Albeit we don’t feel the need for a fancy phone, we do value our privacy and phone security. Why do I still have that Windows phone I hear you ask? Well, I can be too cheap on occasion (plus I had a company phone for a while too). But times are changing and we feel our online privacy is worth something. Why keep a blog then? Good question, need to get back to you on this!
But all joking aside, we use the phones daily and the amount of data that is being collected on an Android system is far greater than that through an iPhone’s IOS. Now Apple is not a saint either when it comes to data mining, but it’s less then with our friends from the binoculars. Less is beter here.
Also Apple tends to have better security and keeps it’s IOS revisions longer for it’s devices (I like that part of durability / sustainability). We also like minimalism, so having tons of apps on the phone we don’t use but cannot get rid of, is something we don’t like of Android systems. No, I’m not going to Root an Android system. Not my cup of tea.
Anyhow, we’ve decided on getting one or two iPhones. But which ones?
When browsing around the interweb, I found this cool overview of IOS revisions per iPhone model. I’ve recreated this in the blow Excel overview and added my anticipated number IOS revisions and therefore the remaining revisions for the particular models. Note, IOS 13 will be released later this year and should hold up to late 2020. It’s likely that support for the iPhone 6S and SE will be dropped by that time. The iPhone 7 likely still sees support to 2021, and so on and so forth.
Next I looked for the various prices of the base models of each iPhone. As noted, we don’t need a fancy phone, loads of storage or any other extra’s. We are just looking for the biggest bang for our buck in terms of operational life (from an IOS perspective; assuming the battery/phone does not die an early death). This is what I found (assuming you buy a “new” phone, not used or refurbished):
And this is how the yearly depreciation (aka yearly cost of the phone excluding electricity consumption, damage, insurance or repairs. I’m also assuming the phone is worth zip at the end):
So, what iPhone should you buy?
It seems that the price levels for the various basic iPhone models all end up around the €150 per year mark. The more fancy/new models (the X and XS) are definitely more expensive at around €200 per year.
This makes for an interesting discovery, the purchase prices do actually drop at roughly the same pace. Making the most phones cost about the same in yearly terms. So there is no real benefit of buying an older model “to save money” (this does not fly if you are not concerned with your IOS being as up to date as possible thou). Albeit according to the graph above, the iPhone 7 seems to be the best bang for your buck (or Euro in this case).
What I have not factored into the equation is lost opportunity cost. This will obviously add some costs to the newer more expensive models. In short, the iPhone 7 will be getting even more attractive.
What to do, what to do?? We still have a few more weeks to think about it, but it’s not unlikely that we will buy two different phones. It will likely be an iPhone 7 and perhaps an XR. This will spread the cash-flow expense a bit in future years. Also App support should be good for say the next 4-5 years between both phones.
Anyhow, these phones are “expensive fruit” indeed!