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Why is that a terrible way to think about prices? Most people earn money at a predictable rate per month, so it’s perfectly reasonable to talk about these phone
by baddox 9y ago
Why is that a terrible way to think about prices? Most people earn money at a predictable rate per month, so it’s perfectly reasonable to talk about these phone payment plans in the same terms. Obviously this isn’t true for things like credit card or mortgage payments, where interest is likely a significant factor, but AFAIK these cell phone payment plans are interest free.
- lostlogin 9y agoIt’s terrible because any difference between carrier prices is a large multiple of what the sticker/brochure says. Most plans here (New Zealand) are over 2 years, so any difference in price is 24x greater at the end of the contract. And no one here is paid per month, that’s seen as completely antiquated and they are paid per week or per fortnight.
- orf 9y agoReally? Nobody is paid per month? Coming from the UK that is unexpected. Are jobs wages advertised per week? What are the real advantages? Surely it's a bit harder to pay for larger purchases as it requires more controlled saving and spending?
- deleted 9y ago[deleted]
- lostlogin 9y agoI’m sure someone is paid per month but I’ve never come across it. The advantage is fairly obvious - you get to have your money. How much interest are you missing out on? Having your employer in debt to you for up to a month per pay is fairly primitive.
- abraae 9y agoI live in NZ and I would have said that virtually every salaried worker is paid monthly.
- lostlogin 9y agoHave spent years on salary and so have most people I know, paid fortnightly. Seems like we need some real data.
- michaelmrose 9y agoIt's an intellectually dishonest way to de-emphasise how much it costs in total by showing you the smaller monthly amount. You are basically using a marketing trick on yourself to justify the money spent.
- rayiner 9y agoIt also hides the opportunity cost. $10/month doesn't sound like much, but $400 could buy something else nice.
- valuearb 9y agoThere is no lost opportunity cost. Apple or the service providers are proving zero interest purchase plans. My iPhone X costs around $42 a month for two years, then I own a phone that is likely still worth about $500.
- touristtam 9y agoIt is only true because there is a second hand market that trust this is the correct price. Seeing how those devices need to move technically with their time (more powerful hardware), I fail to see the attraction of a device that would be well passed its prime, specially with a battery that isn't replaceable.
- valuearb 9y agoWhether you see the value or not, there is a robust secondary market whose history shows that there is strong demand for used devices and that their entire value doesn't evaporate in a few years. And if I'm wrong about 50% depreciation being typical over 2 years, I'm not wrong by much. There is not a huge difference between 70% depreciation and 50% in your monthly cost of ownership. Undamaged 64GB iPhone 6s are selling for between $230 and $310 on eBay, so that's 60-70% depreciation. On average the 6s cost about $20 per month.
- michaelmrose 9y agoThe 6S Plus was $750 for the most basic model at launch and now ebays for about $200 which squares with losing about half the value per year which is pretty normal. Consider also the fact that the battery life will be substantially decreased from new and that most people wont be able to replace it themselves. Something that is overprice is actually more likely to decline because 2 years from now its just a comparatively slow device that no longer serves as a status symbol.