I’m departing from the usual online privacy/anonymity/pseudonymity communique with information about the cumulative cost of that little slab of glass in our pocket. This is specifically for Apple iPhone owners, but Android phone owners might gain awareness about their situation as well.
The Mobile Carrier Upgrade
When the time comes to upgrade your mobile phone, many walk into their mobile carrier’s store and are greeted by an overly-friendly sales associate who is abnormally happy you came in to visit them. As soon as you mutter, “Um, I need a new phone.” you will undoubtedly be bombarded by confusing jargon describing phone features, limited time deals, and budget-friendly math. The same also applies with visiting your mobile carrier’s website. For example, Verizon’s February 2022 special is a brand new Apple iPhone 13 Pro.* I’m confident this will be the same deal communicated by your highly-knowledgeable sales associate in the store. Don’t click on that link unless you want to be hypnotized by world-class marketing to make you think you are getting a bargain.
Verizon is offering a new, shiny iPhone 13 Pro for $27.77/month with a 36-month contract.** That's less than a dollar a day. What a deal! Do the math. You're paying $1000 over three years for that new shiny phone.
The Warranty Coverage
Verizon offers “mobile protect” coverage for your new iPhone for $17/month. Three years of $17/month damage insurance is $612. If your new shiny screen cracks, you'll only have to pay a $29 fee to get it repaired. Helpful, considering you're looking at hundreds of dollars to replace a mobile phone screen without warranty coverage.
Don’t think about how sexy your new phone will be in your hands after seeing Apple’s compelling advertisements. Most of us put a cheap $10 case from Amazon because we like the color. Instead, think about paying $1612 (plus taxes and fees) for your mobile phone over the next three years…approximately $48/month.
The Apple Upgrade
Some may avoid the mobile carrier phone-buying experience and upgrade their phone directly from Apple’s website or the Apple store. Apple is selling the same iPhone 13 Pro model, same specs, but unlocked*** for $41.62 a month for 24 months, no contract. Interestingly, the total amount you’re paying for the phone from Apple is just about $1000.
The AppleCare Coverage
AppleCare+ just for damage repair is $10/month for two years, or $240, but you can pay $199 up front. Should you want more coverage, you can get AppleCare+ with damage repair and theft/loss coverage for $13.50/month until cancelled. Two years of this tier coverage is $325, but you can pay $270 up front.
By purchasing your phone from Apple, you are paying somewhere between $1000 and $1325 (plus taxes and fees) over the next two years…approximately $55/month.
…and I’m not including the cost of your mobile phone monthly plan.****
The Alternative
If you are someone who doesn’t need the latest and greatest phone, consider purchasing an unlocked iPhone SE 2nd Generation phone from 2020, used but in mint condition, for approximately $275. Depending on when a used phone was debuted, you can check the serial number online to see if it still qualifies for AppleCare+ warranty coverage.
The Message
Premium technology. Premium prices. And what are you using it for?
Calling people
Text messaging people
Taking pictures
Sending and receiving email
Listening to music
Surfing the web
Interfacing with social media
Jotting notes down
Please take time to consider if the true cost of your phone is worth the convenience it offers; to always have access to the above whenever you want. Unless you have a cracked screen.
* Unless you are a professional photographer or videographer, you don’t need a “Pro” device. The standard model suits the needs of most of us just fine.
** Don’t ever cancel a contract with a mobile carrier before completion, early termination penalty fees are in the hundreds of dollars.)
*** an unlocked phone permits you to use it with any mobile carrier, e.g. AT&T, Verizon, Sprint/T-Mobile. Purchasing a mobile phone directly from a carrier may not be fully unlocked and would require significant tech-nerd tap dancing to unlock after your contract has been fulfilled.
**** Mint Mobile is a MVNO, or a small-time mobile carrier. They use T-Mobile cell towers to offer nationwide coverage. They offer 5GB data for $15/month. And you can transfer your current number from your current mobile carrier over to them for a nominal fee.