What Many People Seem to Miss About iPhone Pricing

There’s a saying that goes something like “spend your money where you spend your time.” This makes sense. If you spend a third of your life on your mattress and it lasts for ten years, you should absolutely spend the extra money—even if the amount is significant—to get the one you prefer. I recently did exactly this and the additional $1,000 to sleep better—or more importantly for my wife to sleep better—for about 3,500 nights was a no brainer.

This week I’ve heard and read an unusual number of people complaining about the new iPhone prices and potentially switching to Android as a result. I don’t want to sound out of touch — this of course makes sense for those in income brackets where a few hundred dollars affects lifestyle. But these are not those people. Most of us spend a ridiculous amount of time on our phones, and if you don’t lose or break it you should expect it to last two years or more. It is arguably the most important item you own. Assuming you are in fact getting a better product for that extra money, this is another scenario where you definitely should get the phone you prefer. [1]

To some extent the same argument could be made for the largest purchases we make, such as a place to live and a car. However, the price differentials here can be extreme and affect the lifestyles of even the affluent. Smartphone price differentials do not fall into this bucket (with some notable exceptions).

To put it colloquially: Treat. Yo. Self.

Notes

[1] An interesting question echoed by Ben Thompson is if the majority of iPhone buyers know this (or are just generally insensitive to price) and will thus spring for the iPhone X instead of 8, which has big implications for Apple.