Are iPhones expensive?

The most expensive iPhone is now $1449, for the 512 GB iPhone XS Max.  That is crazy … right?

I looked around and found some other interesting numbers.

  • The average replacement cycle for cell phones in the US in 2017 was 32 months.
  • The average cell phone bill in the US is now over $80/month.

I dusted off my multiplication skilz:  32 times 80 is $2560. $1449 divided by 32 is $45.

So who is making money on phones?  The answer is Verizon, ATT, T-Mobile, Sprint…

iPhones are expensive compared to many perfectly serviceable phones, but they are not expensive compared to the service providers.

Phones are a competitive market.  I’ve owned both Apple and Android phones  They are fine.  If you think iPhones are too expensive, don’t buy them.

My own solution to the “Apple products are too expensive” was to buy some Apple stock.  It has worked out well.

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