Link to original video by Simon Bernlieger

Cheapest Way to Own an iPhone

Summary of "Cheapest Way to Own an iPhone"

Short Summary:

The video explores the concept of "cost of ownership" for iPhones, emphasizing that the true cost goes beyond the initial purchase price. It analyzes the depreciation of iPhones over time and compares different buying and selling strategies to determine the most cost-effective approach. The video highlights that buying a used iPhone, especially shortly after the release of a new model, can be significantly cheaper than purchasing new. The speaker encourages viewers to consider the long-term cost of ownership when making iPhone purchase decisions.

Detailed Summary:

Section 1: Introduction to Cost of Ownership

• The video begins by introducing the concept of cost of ownership, which includes the initial purchase price and all subsequent costs associated with owning a product over its lifetime.
• The speaker uses the example of an iPhone, comparing the cost of buying a new phone and using it for three years before discarding it versus buying a new phone and selling it after three years.
• The speaker emphasizes that while this concept is well-known for cars, it's often overlooked when buying iPhones.

Section 2: iPhone Depreciation and Market Trends

• The video explains that iPhones depreciate significantly, especially in the first year.
• The speaker provides data on iPhone depreciation rates based on research of used iPhone markets in Austria, the US, and India.
• The speaker notes that the depreciation curve is similar across different regions, with iPhones losing the most value in the first year.

Section 3: Cost Comparison of Different Buying Strategies

• The video compares the cost of ownership for different iPhone buying strategies over a three-year period:
  • Buying a new iPhone every year and selling the previous one: This strategy is the most expensive.
  • Buying a new iPhone and keeping it for three years before selling: This strategy is more cost-effective than buying new every year.
  • Buying a one-year-old iPhone every year and selling it after a year: This strategy is even more cost-effective than the previous one.
  • Buying a two-year-old iPhone every year and selling it after a year: This strategy is the most cost-effective for standard iPhone models.
• The speaker also briefly discusses the cost of keeping an iPhone for five years, highlighting that the value plummets to near zero.

Section 4: Practical Applications and Recommendations

• The speaker encourages viewers to use the concept of cost of ownership to make informed iPhone purchase decisions.
• The speaker recommends buying a used iPhone shortly after the release of a new model, as this is often the most cost-effective strategy.
• The speaker also suggests using the monthly cost of ownership to evaluate carrier deals and rental offers, ensuring they are not overpriced.

Section 5: Conclusion and Call to Action

• The speaker emphasizes the importance of considering the long-term cost of ownership when buying an iPhone.
• The speaker encourages viewers to think like a business and make well-calculated decisions based on the numbers.
• The speaker concludes by urging viewers to leave a like and subscribe to the channel.

Notable Quotes:

• "Our smartphones are next to housing, food, transportation, probably the biggest and most important expenditures we need to cover."
• "It really doesn't matter because my main goal with this video here really is to get you to think in that way and have a rough idea about how much your iPhone depreciates."
• "Don't be somebody who buys a new iPhone and lets their perfectly usable phone rot in a drawer for all eternity."
• "Try to think like a business and just look at the numbers and make a well-calculated decision."