Garret K
Garret K
Aug 25, 2017 · 1 min read

So.. you effectively took $650 / $100 annual discount by Apple to arrive at ~15% then tweaked it due to 5c /6s pricing anomalies to get ~16%? Ok… maybe! Gah! I just looked up iPhone 5 16gb on Amazon which is now retailing for about $99 new from $650 originally. Assuming it launched about 5 years ago then your math is fairly spot-on. 0.16 x 650 ~ $105; $105 x 5 = $530; $650-$530 = $120. Off by a bit but not too far off.. The iPhone 5s 16gb retails for $240 which is actually even closer to your initial prediction.

Some initial thoughts: I wonder if the 2 year / 0% APR phone financing programs slightly subsidizes phones since they are payed off years after initial purchase (due to inflation..). Second, what about iPhone Plus models / different storage capacities / colors? Do they depreciate faster? I did notice some colors like black retain a slightly higher price (but you did mention “fashion” choices are slightly anomalous)..

Anyways, thought provoking! Have a great day man.

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    Garret K

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    Garret K

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