Why do phones cost so much?

[Shuck Water]

I was responding to a work email while on the lake today. A wasp buzzed my face and I instinctively went to swat it away, but because I just put on sun tan lotion, my hands were slick and there went my iPhone into the water. I was in 40 feet of water and no luck of ever retrieving. So, I go to replace the phone and the bill is $750!!!! Are you freaking kidding me? This is just nuts!!! Welcome to the 21st century.

 

[GiddYupJoe]

Sign up for an additional line and get the phone on promo (subsidized) and then port your other # over. you would have to do the math but it could work out cheaper?

 

[justason]

Someone recently told me about square trade (insurance). $5 month. Anyone have/use it?

 

[Big Shasta]

Lifecase. I don't know if it floats but maybe you could have saved it. It's cheaper than the cost of the deductible on most insurance claims.

 

[craigm]

An iPhone would have cost $3.5 million to build back in 1991, according to back-of-the-envelope-math by TechPolicyDaily.

Here's how the site reached that astronomical sum:

• GB flash memory: $45,000 in 1991 vs. $0.55 today.
• Thus, 32GB flash memory = $1.44 million.
• Apple's processor, which produces about 20,500 millions of instructions per second: $620,000 in 1991.
• The cost of mobile communication in 1991: $100 per kilobit per second.
• The iPhone delivers speeds in the 15Mbps range today: 15,000Kbps (15Mbps) x $100 = $1.5 million.

Add those rough numbers ($1.44 million + $620,000 + $1.5 million) and you get $3.56 million. TechPoliceDaily also points out that sum doesn't even account for the iPhone's camera, operating system, display, apps, or motion detectors.

Wow.

 

[Murf'n'surf]

Why are they so expensive?

G R E E D

 

[BigN8]

If you think it's too expensive......then don't buy it. It's that simple. You don't have to "have" an iPhone.

 

[scokill]

I recall my neighbor buying a CD player in 1983. It cost $1,100 which adjusted for inflation would be $2,500 today. I was too cheap and still had some older 8 tracks and cassettes. The portable camcorder we bought in 1986 for $700 would be $1,700 today. It's all perspective.

 

[Julian]

@Shuck Water totally sucks doesn't it! That is why I put my phone away on the water....."Sorry boss...I was on the water...its a 'no phone' zone"

 

[BigN8]

@Shuck Water here you go.
Check out this article from USA TODAY:

6-inch, $200 smartphone: Bargain or bust?

http://usat.ly/1MzQeLM

 

[itsdgm]

I was responding to a work email while on the lake today. A wasp buzzed my face and I instinctively went to swat it away, but because I just put on sun tan lotion, my hands were slick and there went my iPhone into the water. I was in 40 feet of water and no luck of ever retrieving. So, I go to replace the phone and the bill is $750!!!! Are you freaking kidding me? This is just nuts!!! Welcome to the 21st century.

Why does my wife always want the most expensive one? Her upgrade is going to set me back $1000. IMHO, the upgrade isn't worth it........but at this point, my marriage is

All kidding aside, That sucks @Shuck Water sorry to hear, $750 is a lot of money for avoiding a wasp sting!!!

 

[David D]

They're expensive because they are computers - GPS devices - cameras - WiFi hot spots and more (like state of the art batteries, break resistant glass, microphones, speakers, and flashes) all crammed into a tiny package. I know there's profit in there, as there should be, but that's a lot of new tech for $750.

Unfortunately the phone companies are backing down on some of their subsidies so I think the real cost of our new phones and upgrades will become more apparent.

I agree with the idea of adding another line assuming the math still works as well as it used to.

 

[jawsf16]

Phones are like airline tickets. We expect more from them every year and then act shocked if the prices don't stagnate or decrease. The phone replaces so many other items now its crazy. Even more crazy is how you would look at it differently if you were carrying around $750 cash in your pocket and chucking it about like its nothing (not that the OP was doing that). Sorry you lost it, that is a bummer.

 

[David D]

Sorry you lost it, that is a bummer.

Agreed - huge bummer. I'm so dependent on mine I'd go nuts if it was gone for an hour, let alone lost in 40' of water.

 

[Glassman]

An iPhone would have cost $3.5 million to build back in 1991, according to back-of-the-envelope-math by TechPolicyDaily.

Here's how the site reached that astronomical sum:

• GB flash memory: $45,000 in 1991 vs. $0.55 today.
• Thus, 32GB flash memory = $1.44 million.
• Apple's processor, which produces about 20,500 millions of instructions per second: $620,000 in 1991.
• The cost of mobile communication in 1991: $100 per kilobit per second.
• The iPhone delivers speeds in the 15Mbps range today: 15,000Kbps (15Mbps) x $100 = $1.5 million.

Add those rough numbers ($1.44 million + $620,000 + $1.5 million) and you get $3.56 million. TechPoliceDaily also points out that sum doesn't even account for the iPhone's camera, operating system, display, apps, or motion detectors.

Wow.

Dang!

I'm Glad I waited!

 

[billyb]

Well, since you were answering a work email...shouldn't they be paying for it?

 

[Shuck Water]

Well, since you were answering a work email...shouldn't they be paying for it?

Definitely agree, but I doubt they will see it that way. Moral of story is just pay the $10/mo. for the silly insurance or man up and take the sting!

 

[Billtex2000]

Lifecase. I don't know if it floats but maybe you could have saved it. It's cheaper than the cost of the deductible on most insurance claims.

My son had a Lifeproof case on an iPhone. He dropped it from hip height and the screen shattered like an old lady's hip! They are supposedly waterproof but you need the $29 life jacket on it which makes it as big as a brick. I have Otterboxes on all my phones. Solid as a rock! I also have the insurance through Verizon and have had three iPhones replaced for a $50 deductible. It's about $8.99 a month.