Many budget-conscious individuals claim to save significant amounts by omitting the purchase of the most recent tech products. I find myself nodding in agreement with them. Nonetheless, I’ve observed that many who follow this approach hold onto their devices until they’re practically outdated. I can’t help but contemplate whether staying current with tech trends could, in effect, lead to better savings in the broader scheme of things.
Take for instance, an individual who purchased the inaugural iPad at its release for around $500. With the arrival of the “fresh” iPad, the original model’s value has depreciated to approximately $200. If one was to sell this device now, they would swallow a potential loss of $300. The longer one waits, the further the initial investment diminishes.
My husband, an ardent tech enthusiast, has developed a strategy of buying tech devices second-hand and selling them preemptively at the whisper of a new model’s launch. By doing this with his iPhones, he’s been able to turn a profit, trading in older models just before the launch of their successors. He then unlocks the latest version via an upgrade in our phone contract for a mere $199, excluding tax. I remember him fetching $350 on eBay from his iPhone 3G, and $450 from his iPhone 4.
In a similar fashion, he bought the original iPad for $355 upon the release of the iPad 2, only to sell it for $265 on Craigslist ahead of the launch of the third-generation iPad. This incurred a $90 loss. Yet, he managed to purchase the iPad 2 for $355 on eBay, as everyone was panic-selling their units to afford the latest iPad. He’s planning to keep the iPad 2 for a few months before upgrading to the iPad 3, his preferred model. He’s expecting to sell the iPad 2 for roughly the same price or at least $335. Once some time has lapsed, he should be able to snag a pre-owned or refurbished iPad 3 for $400 or less, and retain it for a longer duration thanks to its enticing features.
So, what’s the takeaway from our tech journey? We spent $710 for two iPads, and anticipate a $90-100 loss once we sell the iPad 2. This implies a cost of $90-100 for three years of usage. On the contrary, early adopters of the debut iPad, selling it only recently, would have suffered a loss of around $100-300. Timelier decisions on buying and selling their tech could have saved them considerable resources.
For tech aficionados, it would be wise to acquire second-hand devices when an updated version is on the horizon and dispose of them just before an even fresher model is launched. A golden rule is never to allow yourself to lag more than two generations behind the latest product in order to maintain its value.
Some may question the rationale behind frequent upgrades. However, it’s worth noting that after heavy use over several years, tech devices are bound to run into issues. While designed to last a considerable while, they aren’t infallible over time! Hence, if you purchased the first-generation iPad for $355 as we did and chose to wield it until it’s defunct, you would either have to shell out repair costs or lose $355 to substitute it when it eventually hits obsolescence.
How has your journey with technology transpired? Do you stick it out with your devices until they’re unusable or are you inclined to replace them routinely? How has this influenced your economical lifestyle?
