The iPhone is an Investment

14Jul08

This past weekend we experienced the second coming of the Jesus phone. The blogging community likes to point out that the overall cost of the iPhone over 2 years is something around $2,000. While that is true it is hardly any different from paying those fee’s with any smartphone, be it Windows Mobile, Blackberry or Palm. Data plans will always cost you at least $30 a month so deal with it.

How is it an Investment?

The iPhone is exclusive to AT&T for five years. That means all you suckers on T-Mobile can’t get your grubby hands on these babies for a while. The exclusivity + cool factor of the phone generates a high demand. This means someone is willing to buy your phone at a PREMIUM because there is limited supply. I should teach economics 101 by the way.

Three Easy Steps

  1. Buy an iPhone, sign a two year contract
  2. Next year, when the iPhone is updated, unlock it and sell it to some chump on T-Mobile for 100% of the value or more.
  3. Do loop

Benefits

  • You always have the latest and greatest phone
  • Worst case you break even, best case you make a profit
  • Browsing the internet on the iPhone is far superior than any other phone

For more investing articles and tips check out some older posts

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3 Responses to “The iPhone is an Investment”

  1. Um, hi. I currently pay $60/month for two Palm Centros, 1000 minutes shared, 500 txts/month/line, and unlimited data with tethering on both phones. That is, indeed, $30/month/line…for EVERYTHING. Including tethering, which is pure awesome.

    This is on Sprint, and is a retention plan you can get by signing a 2-year contract, or a new plan you can get through Sprint SERO.

    There’s not much an iPhone can do that a Centro can’t.

    -Erica

  2. thanks for the comment erica. you are getting a fantastic deal on a data plan with Sprint, I’ve got a buddy with a Windows Mobile device with a similar rate.

    though the centro may be a fine device and probably has more “features” than the iPhone, its resale value will not hold. The hype machine known as Apple, and the exclusivity of the device makes it something people demand which keeps its original value.

    though we are paying a premium for abysmal data from AT&T, the phone itself holds its value when upgrading the next time Apple rolls out another device.

    thanks again Erica. btw – I’ve stumbled across your site before and your entrepreneurial spirit is inspiring.


  1. 1 5 Things You Should Know About The iPhone 3G « The Fratboy Investor

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