iPhone X all the fuss about iPhone prices...

[Cashmonee]

This! Also, why does it matter? Unless any of you are married to another or live in the same household, it’s none of your business how, or how much, anyone paid for their phone.

Because this type of thinking is squeezing the middle class out of existence. 2 year (soon to be 3 year) phone loans, 84-month car loans, interest-only home loans (they are coming back, yay!) are all tools used to allow companies to increase prices to a point beyond what most people can realistically pay. It masks your inability to pay. At some point we all need to not have to have the newest phone every year. Honestly, if you have a X, how can you really justify the purchase of a XS or XR as anything other than I want the new one?

You are correct. It is an individual's decision. However, as much as we wish it were true, that does not happen in a vacuum, and currently there are enough individuals making these decisions for Apple (and a whole host of other companies) to continue raising prices to new heights and squeezing the life out of the middle class (and just destroying low income) because they tricked us all into having to have the newest one every year. Sooner or later the debt will crush the economy again, and the outcome may be potentially worse next time.

 

[Nexus One]

The peasant iPhone known as the iPhone XR is only $50 more than the iPhone 8. No complaints about pricing here this year.

I realized online dorks aren't happy if they aren't complaining. Been that way since The Phantom Menace and messageboards.

LOL @ the 7:09 mark

 

[trekkie604]

This! Also, why does it matter? Unless any of you are married to another or live in the same household, it’s none of your business how, or how much, anyone paid for their phone.

It matters because OP was making excuses for Apple raising the purchase prices continuously year over year for several iterations. Just because you can buy on installments doesn't negate the fact that they have indeed risen quite significantly.

All the cheap credit and people buying items beyond their means under the illusions of just making the monthly payments - just look what happened in 2008.

 

[BorderingOn]

i did not say i was saving money --- the point was about shock value of sticker price vers what most people end up actually paying

Either the phone has $1000 or $1500 of value to a person or not. Either they can afford $1000 or $1500 or they can't. Talking about monthly payments is just teaching financial irresponsibility. Anyone who NEEDS a payment plan probably should not be buying one of these in the first place. Either you have some candy money laying around or you save up for a couple months. Committing to a payment plan for such a trivial purchase when you may run into unexpected financial burdens later on is just a really bad habit IMHO.

 

[StarShot]

how many people are ACTUALLY paying full retail for an iPhone?

last year i got the X 256 with $0 down and taxes charged next bill.
$56/month and in 10 months it's half paid off which makes upgrade eligibility...

Last year was unusual in that the X didn't come out until Nov, hense your 10 months. Even so, 10 months x $56 is $560. If it had been 12 months, you would be looking at paying $672 (using your $56 a month figure). If you had paid in full, you could have sold your last year's X for $700-$750 instead of trading it in on the new model. I think last year's 256gb X was $1200. Substract $700 and your net hardware cost for the year is $500. Device that by 12 and it comes out to $42 a month verses $56.

A sliightly better deal if a person has the "scratch" to pay in full from the get-go.

 

[bambooshots]

I think what most people take issue with is the title of the OP’s thread and his casual attitude with the price of the phone. “All this fuss about....”

Regardless of what anyone wants to call it: leasing, payment plan, leasing with option to purchase, it does not change the fact that these are expensive phones. Pay it over 24 months, pay outright for it, either way, they are expensive. And you’ll be paying the most when you are in some Upgrade program where you will be making monthly phone payments in perpetuity.

Is that wrong? No. Just be aware the true cost of doing so.

 

[gurase]

I think what most people take issue with is the title of the OP’s thread and his casual attitude with the price of the phone. “All this fuss about....”

Regardless of what anyone wants to call it: leasing, payment plan, leasing with option to purchase, it does not change the fact that these are expensive phones. Pay it over 24 months, pay outright for it, either way, they are expensive. And you’ll be paying the most when you are in some Upgrade program where you will be making monthly phone payments in perpetuity.

Is that wrong? No. Just be aware the true cost of doing so.

This exactly!

When I bought my car last year I asked how much an all weather cargo mat for the trunk would cost. The salesman said “well you can just roll it into the monthly payment so it’s not much more”. No, it’s the same price regardless. And actually more expensive in this case because the car loan has interest. People are generally more willing to justify extra costs and more expensive things if it’s rolled into a monthly payment.

 

[Phone Junky]

This exactly!

When I bought my car last year I asked how much an all weather cargo mat for the trunk would cost. The salesman said “well you can just roll it into the monthly payment so it’s not much more”. No, it’s the same price regardless. And actually more expensive in this case because the car loan has interest. People are generally more willing to justify extra costs and more expensive things if it’s rolled into a monthly payment.

This exactly. Go talk to any car salesmen and they don't want to talk the price of the car. The first thing out of their mouth is "how much are you looking to spend a month". They'll twist the numbers around six different ways to get you 'behind the wheel'. Really irritates me.

 

[Apple_Robert]

This exactly. Go talk to any car salesmen and they don't want to talk the price of the car. The first thing out of their mouth is "how much are you looking to spend a month". They'll twist the numbers around six different ways to get you 'behind the wheel'. Really irritates me.

What do I have to do, to put you behind the screen of a new iPhone today?

 

[kp98077]

Look at it this way, you pay $720 a year for 3 year, which equals $2160. I pay $1400 one time keep it for 3 years, and them sell my phone for $400. That phone only cost me $1000, while you paid $2160 renting your phones.

Yeah doesn’t work that wag ... lol.
It’s aniut $50 a month is US that’s 300. Year for two years !!!

 

[craigio85]

Fair enough.
Replace scam w/ “poor value”, or “not a good deal”.

I suppose if it’s worth hundreds upon hundreds of dollars for one to not have to deal w/ crazy, new-fangled, difficult to comprehend & use sites such as eBay or Craigslist- hey... more power to them!
You pay for convenience!
I personally find it well worth it to pay to have a steak prepared at my local steakhouse... However, I’d be being INCREDIBLY disingenuous if I went on to public forums and tried to convince others that there was a value-oriented or “good economics” piece to that decision. There’s not- I’m allowing a company to reap profit to provide me w/ convenience... just like if I participated in one of these upgrade programs!
[doublepost=1537110966][/doublepost]

You used to be able to transfer your AC+ to your new device (I preferred that...), now you get a credit for the unused portion, prorated to the day- thus not paying a penny more than you use.
It’s still fair, but.. I agree- adds a slight wrinkle.

Great I admire people who do have the drive to sell and minimise their losses. I know it makes the most financial sense, but in reality my old phones end up in a drawer for a few months until they’re given to my parents or something. So for me - and many others - there’s no material loss in taking advantage of free finance.

 

[cbarnes3121]

how many people are ACTUALLY paying full retail for an iPhone?

last year i got the X 256 with $0 down and taxes charged next bill.
$56/month and in 10 months it's half paid off which makes upgrade eligibility...

i order the Xs Max 512 as an upgrade with $0 down and taxes charged to next bill...

so I've only "paid" for half of the X, $560, and a year from now I've only will have paid $720 for the Xs Max when it's time to upgrade again

I know everyone has different carriers with different upgrade options but realistically how many people are for real paying the entire price?

unless you are buying SIM FREE or you use prepaid carriers... there's not a reason you can't be upgrading yearly with little to no additional cost. if you are i feel like you're doing something wrong...

i don't get it either most of the people complaining don't pay full price for the phone im on att next plan i ay like 40 a month and upgrade everytime a new phone comes out . im not interested in owning the phone outright noway.its not like its a car or computer which i rather own outright

 

[macdaddy1991]

I calculated that over the course of a 2 year contract I would be paying over 2000$ for the plan that I already have. That’s why I buy outright so that I can keep my plan and not be forced into plan that cost way more for less.

 

[Phone Junky]

Great I admire people who do have the drive to sell and minimise their losses. I know it makes the most financial sense, but in reality my old phones end up in a drawer for a few months until they’re given to my parents or something. So for me - and many others - there’s no material loss in taking advantage of free finance.

So you're keeping the phones. Nothing wrong with that. You still have the phone to do with what you wish.

 

[AndyDiamond]

But you never own the phone, I don’t like that. I also usually sell the phones since I own them and end up paying less for the next one I end up getting.should I decide to keep one, I can.

Not entirely correct - on the IUP you can own the phone if you want - just keep paying the monthly fee for 24 months and then you own it. Or you can do it sooner by simply paying the remainder of what you owe in a lump sum.

There are many people who do not want to, or who are unable to, drop the full amount of cash up-front on a phone like this.

Another tthing that people tend to overlook is that you get Apple Care included with the IUP.
That's an extra $200 up-front or $10p/m if you purchase the phone outright.

Also, after you have made 12 payments (either over 12 months or in bulk) you get the chance to upgrade to a new model which may mean you could 'downgrade' and pay less per month if you say, had an iPhone X and wanted to get an iPhone XR instead - your monthly payments would go down.

So if you want Apple Care and the ability to always have the latest tech and don't want the hassle of selling a used phone down the line, the IUP starts to look like pretty good value.

I know for myself, after buying phones outright since the iPhone 3, it did not make sense for me to keep doing that.
The IUP is perfect for me.

EDIT - also if you are doing the IUP thing - its not a bad idea as far as building your credit rating goes either.

 

[Sugadaddy]

The iPhone upgrade program makes sense to me if you pay it in full and own the phone afterwards. Financially, you’re getting a zero interest loan, so you can invest that money instead.

If you trade it in after a year, it’s equivalent to buying and reselling for 50% of its value, which is low after only one year. What’s the price of an iPhone X today? Probably around 2/3 of its initial value.

 

[DakotaGuy]

You would think the Xr would be the best selling phone by far at the price point, however I would not be surprised at all if the Xs/Xs Max outsell it. If Apple's target market was based around lower income groups then common wisdom would be a lower priced value model would sell better. Since most Apple products and iPhones are targeted at higher socioeconomic groups many people buy these phones as a status symbol. Carrying around an Xs Max makes a much better statement about your net worth then a more budget minded Xr. The Xr will sell just fine, but it's not as attractive to most Apple customers that have no issue with affording a $1000+ phone.

 

[Phone Junky]

The iPhone upgrade program makes sense to me if you pay it in full and own the phone afterwards. Financially, you’re getting a zero interest loan, so you can invest that money instead.

If you trade it in after a year, it’s equivalent to buying and reselling for 50% of its value, which is low after only one year. What’s the price of an iPhone X today? Probably around 2/3 of its initial value.

Only if you want/need AppleCare+. Otherwise you're paying an extra $200.

 

[AppleHaterLover]

You would think the Xr would be the best selling phone by far at the price point, however I would not be surprised at all if the Xs/Xs Max outsell it. If Apple's target market was based around lower income groups then common wisdom would be a lower priced value model would sell better. Since most Apple products and iPhones are targeted at higher socioeconomic groups many people buy these phones as a status symbol. Carrying around an Xs Max makes a much better statement about your net worth then a more budget minded Xr. The Xr will sell just fine, but it's not as attractive to most Apple customers that have no issue with affording a $1000+ phone.

I think phones as status symbols is not a thing anymore.

 

[IdentityCrisis]

I think phones as status symbols is not a thing anymore.

Only for Apple owners it is.

 

[The-Real-Deal82]

You would think the Xr would be the best selling phone by far at the price point, however I would not be surprised at all if the Xs/Xs Max outsell it. If Apple's target market was based around lower income groups then common wisdom would be a lower priced value model would sell better. Since most Apple products and iPhones are targeted at higher socioeconomic groups many people buy these phones as a status symbol. Carrying around an Xs Max makes a much better statement about your net worth then a more budget minded Xr. The Xr will sell just fine, but it's not as attractive to most Apple customers that have no issue with affording a $1000+ phone.

I don’t agree with that as most people I know have older iPhones and many are 30 something professionals with decent salaries, yet don’t seem to buy the most expensive iPhones. Apple would disagree their products are aimed at higher earning groups too as they market it as the phone for everybody.

 

[The-Real-Deal82]

Only for Apple owners it is.

I think you need to highlight ‘some’ in that statement as I’ve never met one outside of an Internet forum.

 

[gurase]

Carrying around an Xs Max makes a much better statement about your net worth then a more budget minded Xr.

Not necessarily...a surprising number of wealthy people realize you don’t get wealthy by buying lots of expensive things. Hondas and Toyotas are among the most popular cars for millionaires. People flashing around expensive cars, houses, and phones could be drowning in debt to fund those things.

 

[AppleHaterLover]

Not necessarily...a surprising number of wealthy people realize you don’t get wealthy by buying lots of expensive things. Hondas and Toyotas are among the most popular cars for millionaires. People flashing around expensive cars, houses, and phones could be drowning in debt to fund those things.

This. You’d be surprised by how many C-level people rock iPhone SEs as their personal phones and give zero Fs about it.

The only statement about net worth the XS can give is that yours is probably $250 lower than that peasant with the XR.

 

[jeremiah256]

Because this type of thinking is squeezing the middle class out of existence. 2 year (soon to be 3 year) phone loans, 84-month car loans, interest-only home loans (they are coming back, yay!) are all tools used to allow companies to increase prices to a point beyond what most people can realistically pay. It masks your inability to pay. At some point we all need to not have to have the newest phone every year. Honestly, if you have a X, how can you really justify the purchase of a XS or XR as anything other than I want the new one?

You are correct. It is an individual's decision. However, as much as we wish it were true, that does not happen in a vacuum, and currently there are enough individuals making these decisions for Apple (and a whole host of other companies) to continue raising prices to new heights and squeezing the life out of the middle class (and just destroying low income) because they tricked us all into having to have the newest one every year. Sooner or later the debt will crush the economy again, and the outcome may be potentially worse next time.

Agree very much, but would like to point out that Apple addressed this during their event, acknowledging that people are holding on to their phones longer and that they are working to extend the lifespan of their phones.

They didn’t do this totally out of the goodness of their hearts - they know for the developing middle classes outside of the west that smartphones are the new PC, and that these customers will need a reason to invest in their ecosystem. They also know that they are in an unique position to leverage their reputation and physical stores to these customers to make them feel better about this high investment. And with iOS 12 added to the mix (running great on my iPhone 6S), I believe they are putting their money where their mouth is.

Again, agree wholeheartedly with the spirit of your post. And I hope you expand on it and make it a separate thread because I think too many tech sites seem to contribute to pushing their readers to buy the latest, maxed out, whatever and this needs to be addressed.

I just think that everyone is ignoring there are other very affordable, yet very capable models being provided and that payment plans are a reasonable tool to leverage your money and not inherently evil.