iPhone is Cheaper Than Android

According to this¬†post on Priceonomics, when you factor in resale value and compare—an iPhone will set you back $13.20/month after 18 months and Android will cost 40% more. (Of course what model you choose and your particular carrier and cell phone plan affect the total bottom line.) Amazing how making a great product—even when making it with higher initial COGS—can actually yield a more cost effective product.

Not everyone looks at TCO especially at first (it’s a pretty complicated concept for a consumer) but many people eventually intuitively understand it even if they don’t have the exact numbers when they are considering buy their second or third product and selling their original. Automobiles are a great example of this. Customer retention rates have traditionally been higher for better than average TCO brands such as Toyota than worse than average brands such as GMC.¬†

Source: Priceonomics