As We Buy Fewer Smartphones The Cost Is Going Up
How long have you had your current cell phone? Just a few years ago most of you would have answered 20-24 months max, but today we’re holding on to our phones for an average of 32 months. We’re not rushing to buy a new handset every year because phones and their batteries are more durable then they used to be, and the rate of technological innovation for phones has slowed. Every time a new iPhone or Galaxy comes out there are fewer new whistles and bells, so we don’t feel the need to get the latest version the way we used to.
You’d assume keeping our phones longer would cut down on our overall cell phone expense, right? Unfortunately that’s not exactly happening. To counter the overall decline in sales volume manufacturers are raising their prices. The trend started with last year’s iPhone X which retails for $1,000. Now Samsung’s Galaxy Note 8 goes for $930 and Google’s Pixel 2 will cost you $850. These price increases are allowing manufactures to clear even more profit on fewer handsets shipped, and we’re spreading out those $25/mo installment payments on our cellular bills for more and more months. Could you imagine a day when smartphones come with 60 or 72 month “same as cash” financing? We might be there sooner than you think.