Today, we live in an advanced age of technology where smartphones have become an integral part of our life. A smartphone is a unique device that combines the features of a telephone and computing device. The number of users of smartphones is increasing drastically with the advancement in technology and smartphones being cheaper and easily affordable for people from all strata of society. People, on average, spend 4-5 hours daily using their smartphones. So how much should a person spend on buying a smartphone that meets his/her needs? It is tricky because it differs from individual to individual and the specifications required by a person in a smartphone. One should remember to cut his coat according to the size of his cloth.
There are various segments of smartphones, from high-end smartphones costing around Rs 35,000 above and mid-range smartphones costing somewhere as low as Rs 12,000. Many financial institutions, such as banks, offer Easy Monthly Instalments (EMIs). Prominent brands like Samsung also provide Samsung mobile EMI offers on their selected phones.
Return on Investment
Before investing a hefty amount in buying a new smartphone, one should consider several factors: Return on Investment, specifications, requirements, obsolescence of technology, resale price, etc. The average period for which a person uses his smartphone is around 2-3 years, and after that due to newer technology one ought to buy a new phone. If a person buys a smartphone for Rs 60,000 and uses it for three years, then the average cost per month turns out to be Rs 1667. Similarly, if we buy a smartphone for 40,000 with a usage capacity of 2 years, the price per month amounts to Rs 1667. Thus, we draw an inference from the above example that the cost per month is the same, so we should decide judiciously before buying a costly smartphone.
Obsolescence and Depreciation
Smartphones are depreciable assets, and due to newer models coming every other day with new features, the market value of a smartphone depletes over a while. Suppose you buy a smartphone for Rs 35,000 in 2020, then the resale value would fall drastically, and it would not fetch more than Rs 15000-20000. Such gadgets are prone to depreciation, wear and tear due to usage, and obsolescence. Thus, selling such second-hand costly smartphones at such low prices is not a win-win situation for any seller. As they say, you should never put all eggs in one basket. Suppose a person’s expensive phone gets stolen, then all his hard-earned money gets lost. One can buy a mid-range smartphone and spend the remaining savings on other assets such as a laptop or a bike. One should avoid buying costlier smartphones under peer pressure or just to flaunt.
Factors on which money to be spent on smartphones depends
The numerous factors on which the decision to buy a smartphone depends are as follows-
- The income of the buyer.
- The savings of the buyer.
- The expenses of the buyer.
- The needs of the buyer.
- The specifications of the smartphone.
- The resale value of the phone.
- The cost of the smartphone.
- The life span of the smartphone.
- The opportunity cost of investment.
Is it worth spending a considerable sum of money on buying a smartphone?
Everything boils down to one ultimate question-whether is it worth investing money in a costly smartphone in the long run? The answer to this question will rely on various factors, such as the purpose of buying the phone. For gamers, it’s better to buy a high-end phone which has more RAM and does not lag. A mid-range smartphone would be more apt for students and users who want a phone for primary purposes like messaging, emailing, surfing the internet, etc. Personal preferences and a craze for gadgets are also crucial factors in buying expensive smartphones.
Deciding how much to invest in a new smartphone is a difficult choice that involves significant cash outlay. The choice of a smartphone will depend on the user’s requirements and the functionality embedded in the phone. If you do not have the funds, you can always opt for various Easy Monthly Instalments (EMI’s) offered by banks and many smartphone companies at low or zero-interest loans. Samsung mobile EMI offer is very lucrative in the market to choose from the other options available. If one opts to buy a mid-range phone instead of a costly smartphone, he or she can save a large sum of money that can be invested in mutual funds, fixed deposits, buying a laptop, or other essential things of high value. Therefore, before making any decision, one should consider the return on investment.
Read more About Smarts Timer.