Why I bought the iPhone 4S
As I’m sure many of you know from Twitter, I went out and bought the iPhone 4S on Friday. Everybody was talking about those crazy line-ups. Well, I just strolled into the store in Metrotown, and 10 minutes later, came out with the 32GB (white).
Now, I was originally going to agree to a contract extension with Rogers Wireless in order to get the iPhone at a discounted price. But after checking my hardware eligibility, as well as the Early Cancelation Fee for service (ECF) and the Data Early Cancelation Fee (DECF), I decided to buy my iPhone directly from the Apple store, unlocked, and for full price.
Meaning, I just dropped $838.88 ($749 + tax) on a cell phone.
Here’s why:
First, it was a given that I was going to buy the new iPhone. I knew that months ago. And I don’t care what anyone says, I was really impressed with the features of the 4S. I have no idea what the 5 will be like (I’m sure it will be amazing), but I don’t see myself upgrading again for a really long time. This phone is my birthday present to myself, and it is my reward to myself for what I would consider to be a really productive year – both personally and professionally.
Back in Fall 2009, I started my quest to get the iPhone 3GS, and in January 2010, I bought it for $299 and agreed to a 3-year contract which takes me to February 1, 2013. Meaning, I’m about mid-way through my contract.
In order to upgrade to the 4S with Rogers, I would have to agree to a new 3-year contract (taking me to October 2014) and pay: $319 (for the phone) + $150 (Early Upgrade Fee) + $35 (Admin Fee) = $504 + tax
It hardly seemed worth it, considering an unlocked phone directly from Apple (with no contract) was only $245 more.
If I decided to buy the phone with Rogers and agree to the new 3-year term, my Early Cancelation Fee would reset back to the maximum of $400, and the Data Early Cancelation Fee would be back at $100. PLUS, the plan that I have no longer exists anymore, and is still cheaper than all of the data plans available on the Rogers website for new customers. So I’d most likely lose out on that too.
A few years ago, I wouldn’t hesitate to sign up for another 3-year contract. But to be honest, I don’t know where I’m going to be 3 years from now. Scary, but true. And I’d rather pay a bit more to not have to worry about a cell phone contract for the next 3 years of my life. Plus, it seems like paying full price for the phone will be cheaper in the long run, than paying $504 plus the ECF and DECF should I choose to get out of the contract before the 3 years is up.
Still, $838.88 is a lot of money and is not to be taken lightly. Even though I use my phone a lot for business purposes, my old phone worked fine (I’m passing it down to my boyfriend). But if you know me at all in real life, you will know how important my iPhone has become to me. Because I’m so busy, it helps keep me organized, and I’m on it constantly.
After I crunched all of the numbers, I knew the final decision would come down to whether it was worth the money to me. And it is. I have the money in savings to pay for the phone in cash, and none of my other financial goals will suffer because of it. I have no debt, aside from my mortgage, and I am running a profitable side business. Still, typical of me, I feel a bit guilty for spending so much on a want, not a need. So, just to make myself feel a bit better, I took on a couple of extra writing contracts (that I normally wouldn’t take) over the next few weeks which will more than make up the value of the phone. All of that money will go to replace the money I took out of savings.
And there you have it – my story on how I spent $838.88 on a phone. :) I played with it a lot over the weekend, and I’m extremely impressed with iMessage, the new camera, HD video recording, and Siri. I can see myself using Siri a lot, actually.
Did you upgrade to the iPhone 4S?
44 Responses to “Why I bought the iPhone 4S”
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You go girl! I was in Tokyo on Friday and went by the Apple store after dark and the line was still long. Now I’m back in Bangkok where it hasn’t been launched but it should show up on grey market shops within a few day if it hasn’t already. I’m going to get white only because my iPhone 4 is black so I want everybody to know I have new one!
I recently purchased the iphone4 back in july knowing that the 4s was going to be launching soon, however I couldn’t wait till now for it seeing as I needed a phone.
I’m just wondering, did you just pop in your old sim card into your new phone? When I upgraded from a blackberry to an iphone with Rogers all I did was up my data, add voice mail and call display and I only pay about $7 more,
No, I guess the sim card in the iPhone 3GS doesn’t work anymore with the 4S because it now takes a micro sim. They gave me one at the Apple store, and all I did was call into Rogers and everything transferred over to my new iPhone.
Hi Krystal,
This is exactly what frugality is about. Cutting where it doesn’t matter and spending where it matters to YOU.
I was over at the younghouselove website over the weekend and read a quote posted by the blogger’s dad on frugality. That’s essentially what he says. And he says it beautifully.
“Too often frugality is incorrectly viewed as “giving up,” when the real point of frugality is “getting what you really really want.” Many times I think the main point of frugality isn’t in “not buying;” the main point of frugality- and perhaps life – is to recognize what brings you the greatest rewards and to go enthusiastically for those things. When Kathy and I got married, buying our first home was a biiig stretch, all $27,500, but we loved every minute of it. And buying our current home was a bigger stretch, but it has been a great blessing. And they were both “frugal” decisions. The point is, if you as a person truly derive great pleasure from something, the frugal behavior is to “go for it” – enthusiastically and whole hog. Who cares if you’re not going out to dinner if the money you’re saving can afford you the things you really want? What is given up means little compared with the pleasure of the better choices.” -Love, Tom/Dad”
http://www.younghouselove.com
Kay´s latest post —> The end in sight…
Even though the iPhone 4′s and 4S’s take micro sims, all you need to do is just trim the cardboard off of your old SIM card, the actual chip size hasn’t changed, they just eliminated cardboard. I did this when I went from 3G to 4, and worked fine.
Kayla´s latest post —> school right now is like the stock market
I’m so jealous! I didn’t get one but I’m hoping for one for Christmas.
Michelle´s latest post —> Weekly Money Check-Up: 10/17
I have to admit that sometimes you puzzle me. You make these goals of having bans on buying clothes and eating out at lunch which I think are awesome. Then again you have posts where you write about having holes in your stockings or really need a new wardrobe piece, but you won’t allow yourself to buy it because you’re on a shopping ban. But in August 2010 you spent around $3000 on a Mac Pro and now around $900 on a phone?!? Shouldn’t there be a little more balance? Or maybe you just need a Apple fund ;)
Jackie´s latest post —> Accomplishments
I know I would be much happier spending my money on a new computer and a new phone, than clothing. So while I would like to also buy clothes every so often, I know that I can’t afford to have everything I want. And if I want to be able to buy gadgets like an $800 phone, then I should probably cut back in other areas of my life. And to me, that is balance.
I had no idea these were so expensive! I have to say, i think it is crazy, but i also can tell it was important to you, so, enjoy!
SP´s latest post —> September Reading
I Had the iPhone 4, I managed to find a buyer on craigslist who offered $550, so my upgrade will only cost approx $299 (tax in) to buy directly from apple. That’s less than $1 a day, even if I upgrade again when the 5 is out, and for the convenience it offers me, the amount of productivity I gain while on transit / etc, it’s totally worth it! Glad you like it!
“Treat Yo Self 2011!!”
(I hope you watch Parks and Recreation, otherwise that won’t make any sense) But basically, don’t feel guilty for treating yourself nicely once in awhile!
Marie´s latest post —> Jim Fox is Awesome on Twitter
Hahahahaha I just watched that episode, and that’s exactly what I was thinking. Although, I might refrain from buying a Batman outfit. :P
Wow, that is a lot of money for a cell phone (and a want). But you thought about your decision logically, and decided if it was worth it. Plus, I share the same view that you have worked hard for it, and it doesn’t mess up any of your other goals, so why not?
Taking extra jobs on the side to compensate is a good plan too. Often times when I’m saving for an electronics purchase, I will exclusively use side/extra income. I work my butt off for the “toy” and I feel it’s justified.
I also feel that an iPhone is almost like a need. I’m on mine constantly too, and it’s difficult to function without the agenda reminders and business contacts.
Carrie – Careful Cents´s latest post —> How To Keep Work and Stress Noise Under Control
My boyfriend got an iPhone a couple years ago when his cell phone finally died and has been bugging me to upgrade from m cell to an iPhone. I never saw the point, especially since he had bought me an iPod touch but unfortunately that has disappeared (to my devastation). But my cell phone is starting to crap out now and after watching an hour long special on Steve Jobs last night, I’m starting to sway. Maybe once my cell is officially dead I’ll think about it. But then there’s always christmas and birthdays :P
Shannon´s latest post —> Why Your Baby Doesn’t Have To Break the Bank
Pretty good decision – over the last 4 years i’ve been really shying away from cellphone contracts. I wanted to keep the old flip phone I had for the longest time as long as possible, and right when my contract ended, I had to get a new one. Right now though, i’m at the end of my contract and will just go month to month (if I get a new phone, I cant have unlimited data anymore)
Jeff @ Sustainable Life Blog´s latest post —> Changes and Opportunities
I bought the iPhone 4S, but only had to spend $199 and renew my contract with Verizon here in the U.S. At first I was shocked by your $838 iPhone, but it does look like it makes sense given your contract option.
I’m really interested in working on how I can make the most out of my new phone in terms of productivity and business. I bought it with the hopes that I wouldn’t just use it for checking email all the time and surfing the web when I’m bored somewhere.
I’m enjoying the camera and Siri, too, although I’m still getting over the idea of talking commands to my iPhone like it’s a person.
Jeffrey Trull´s latest post —> I Quit – Fancy Beers When I’m Out
I find the iPhone really helps me out by syncing multiple gmail calendars. Plus I can monitor my blog, check multiple e-mail accounts, update blog Facebook page, as well as Twitter … and stay connected with readers, my editors, and advertisers. I can’t imagine working without a smart phone now. Makes me so much more productive and relaxed now that I can check and monitor everything on my phone whenever I’m out, and especially when traveling.
As, you know, I am now a proud iphone 4s owner.
after reading this, i’d love to know what you mean by this:
“Even though I use my phone a lot for business purposes, my old phone worked fine (I’m passing it down to my boyfriend). But if you know me at all in real life, you will know how important my iPhone has become to me. Because I’m so busy, it helps keep me organized, and I’m on it constantly.”
please tell me how it keeps you organized (apps?) and how it helps your business (do you mean just always being connected?) i really dont know how to make this iphone improve my life, so i’d like to read more.
and p.s. your recommendations for angry birds was quite helpful already :)
Amber, Blonde & Balanced´s latest post —> What I Learned From The Financial Blogger Conference
Well with the iPhone, I can sync multiple Gmail calendars (which is awesome) – so I know what’s happening in my personal life, as well as with freelancing. I have months mapped out in advance in Gmail calendars for guest posts, giveaways, advertising, etc. I also have the WordPress app so that I can write/edit blog posts on the fly, as well as monitor comments. But mostly, the iPhone is my way of staying connected with my e-mail, reader questions, Twitter, etc. I’m traveling a lot, and I’m a pretty busy person – I would hate to miss out on an opportunity just because I didn’t have a smart phone on me.
I would say that as of right now, I use my phone 70% of the time for freelance-related purposes.
Hope you’re enjoying the new phone, which I’m sure you are. If I had an iPhone 3G or 3Gs, then I would make the upgrade to the 4s. I have the iPhone 4 and decided that the extra features aren’t worth it for me, since I’ve only have my phone for less than a year.
It’s crazy your carrier has 2 separate cancellation fees for service and data?
It’s okay that you splurged on a “want” since you work hard. Is there a way to write it off as a business expense?
Jen´s latest post —> Why, Hello There!!
Yeah, I feel the same way. If I had the 4, there’s no way I’d be upgrading. But it’s such a huge difference between my old 3GS and the 4S.
I also think it’s crazy that Rogers has 2 separate cancellation fees, but it’s typical of the big wireless companies in Canada to gouge their customers like that.
I did a bit of reading on whether I can write it off as a business expense. I’ll have to ask an accountant about that. The stuff I was reading is a bit unclear.
If you buy the phone unlocked for an Apple store, are you required to buy-in to a data plan with any phone company; that is, you can just apply any phone plan you wish to the phone? I would love an iPhone for some of its features, but as there is wireless in most locations, I would hate to get locked-in to a contract with an additional $30 of data per month. Just for a discount on the phone…
I have absolutely no idea. I would think that, if you had an unlocked phone, you wouldn’t have to purchase a data plan. But the again, I wouldn’t be surprised if you do have to.
I have an iPhone 3G, and I have absolutely no intentions of upgrading until it dies. I’m like that with all of my electronics; if it has an ounce of life left in it, I’ll keep using it. That being said, if this is something that’s important to you then I applaud you for it. I bought this last phone outright, and I’ll probably buy the next one outright too. Enjoy your new toy :)
Cassie´s latest post —> Taxing Thoughts
$840
I’m speechless.
Your blog is getting farther and farther away from a financial /frugal blog but more towards a diary and justifications for your spending.
Seriously, $840 to upgrade when you already had a smartphone?
That’s like one full mortgage payment!
You comment every now and then, and I often wonder if you read the blog posts I write about increasing my income by 50% (or the comment where I said I was taking on extra freelance work to cover the cost of the phone – which I already had money in savings to pay for, BTW), or prepaying my mortgage by the maximum 20%, or cutting out unnecessary expenses…
I spend money in my life on things that I love. You might not find the same things valuable, but that’s the great thing about personal finance – it’s all about personal decisions for each individual. Yes, I paid $838 for a cell phone. But I also paid $1,200 for a trip to Hawaii, for example. You could argue that the cell phone is worth more than the trip to Hawaii because I will use it every single day for years to come, whereas Hawaii was only for 5 days.
Money is made to be spent responsibly, and you have to have balance in your life.
I am glad you are happy with your purchase. Since I just got the iPhone 4 for free basically I am not even thinking about upgrading until the iPhone 5 comes out, but honestly I could see myself using this phone until it finally craps out on me. Siri is cool but isn’t selling me on it and I’m hoping the 5 will be unique enough with a bigger screen and a new shape and a more improved front facing camera.
Upload a video of you playing with Siri!
K´s latest post —> school right now is like the stock market
I have to say I am very jealous because I am lusting after an Iphone. I am trying to be patient though until my contract is up on my blackberry is up. Don’t worry about what these other people are saying. You probably already make more money than most of them. they are probably jealous of you because they cannot splurge on things like this.
Nope- I don’t even own a cell phone!!
Christina´s latest post —> stay at home mom perk
I’m so jealous! I have a 3GS and I’m going to wait it out as long as possible to buy a new one. I did save up and buy it outside of a contract with Telus, so of course I like your strategy of running the math and making the best decision for you. I’m worried about what will happen once mobile me is replaced by the cloud (that’s the only way I can currently keep track of my boss), so I’ll have to wait it out.
Enjoy your new purchase! You’ve earned it for sure.
Mikhaila´s latest post —> New Themes: Modern News and Dusk to Dawn
Congrats I just got the new 4S I was going to wait but my 3GS got damaged when having a new battery installed. Its a bitter sweet story.
PS I love your blog. I have learnt so much from you in personal finance. Thank you for taking the time to publish this.
Thanks Jon! And congrats on your new 4S! :)
[...] Friday 14th $838.88 iPhone 4S [...]
I want a Siri! Lol but I’m stuck in a contract for another 2 years.
Yes you can definitely deduct it as a business expense. You use it 70% of the time
:)
I think it would be a class 52 or 50?
I have a post on my blog somewhere on “how to get more money back from your tax return” that explains it.
You would deduct it yearly until you “dispose” of it.
So technically this phone is costing you less than $800! :)
I think I bought my iPhone when they had the 100% CCA deduction before feb 2011 for computers and according to revenue Canada an iPhone is sort of like a computer so I got 30% off come income tax time :)
Youngandthrifty´s latest post —> Top 6 Teenage Misconceptions about Money (and How to Set Them Straight)
That’s what I thought! But was a little unclear when I was reading the CRA website. Thanks! :)
Congrats on the new phone :)
I am still at least a year away from being able to afford the data plan that goes along with a smartphone but I am already trying to decide between an iPhone and an Android. And nothing I read can help me decide!!
What is meant by unlocked? I’ve seen this referred to before online and do not know what it means when it comes to a phone.
Stephanie´s latest post —> Beef Stew and Sour Cream Biscuits: I Love Fall Food
Having an “unlocked” phone means that it is not tied to any particular wireless provider. For example, my old cell phone was locked to the Rogers network, and could not be used with any other wireless provider. By having an “unlocked” phone, you can take it and use it with whatever company you want.
Ah! Thanks for the explanation.
Stephanie´s latest post —> Beef Stew and Sour Cream Biscuits: I Love Fall Food
I’d love to buy the Iphone 4S, this past weekend, a small dark smudge appeared at the bottom of my right hand screen. I took it to the iPhone store and they said it’s caused by pressure that was put on the phone and my phone is not under warranty any more and will cost $120 to fix :(
I am thinking of taking my number over to rogers to get the 4S but I ma thinking of saving enough for next year to get the 5 (buying it full price like you did) :) I’ll just keep my current phone the way it is and start saving! :)
Enjoy ur new phone!:)
Money Pincher´s latest post —> Have You Ever…..Hid Your Purchases?
This sounds like it worked out well for you, but just for future reference I have never paid an early upgrade fee with Rogers, nor an early cancellation fee, and I have done several upgrades in the last couple of years, they always just extend the contract out!
I also did that once too – I didn’t have an Early Upgrade Fee, but I had to extend my contract out 4 years instead of 3. And I know the ECF and DECF doesn’t apply when you are renewing your contract. That wasn’t the concern for me. It was that I would still be locked into a contract that bothered me. I think in the end, even if I could have gotten the phone for $299, I would have still opted to pay full price to not be under contract.
[...] Krystal tells us why she bought the iPhone 4S (even though it cost her about $800). [...]
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