(ABC 6 News) – There are two kinds of smartphone owners. Those who want the latest and greatest model with all the new features, bells, and whistles. And those who want to save the most money by getting
and keeping only what they need.

When’s the right time to upgrade your iPhone? Should you be the first in line for the latest model
every year, or hold onto your trusty device for as long as possible? Let’s break down the costs to
find the sweet spot for your wallet.

And it all has to do with what Apple and carriers are willing to give you for your old device.

I’m using the price of the base iPhone 16 with 128Gb of storage space.

The Yearly Upgrade:

If you’re someone who craves the latest and greatest, upgrading every year might seem
tempting. Here’s the financial breakdown:

• Cost of a new iPhone: $800 (or $33/month for 2 years)
• Trade-in value (after 1 year): $410
• Net cost of upgrading: $390

This is the most cost-effective approach if you prefer to pay for your phone upfront and don’t
mind the yearly expense.

It’s important to note that if you pay monthly you will have to pay off the remaining balance on
the iPhone 15.

The Two-Year Itch:

For many, upgrading every two years feels about right. Here’s how the numbers look:

• Cost of a new iPhone: $800
• Trade-in value (after 2 years): $300
• Net cost of upgrading: $500

This is a popular choice, offering a balance between having a relatively new phone and
managing costs.

The Long-Term Hold:

If you’re the patient type, holding onto your iPhone for four years or more can lead to significant
savings:

• Money saved on two years of monthly payments: $800
• Trade-in value (after 4 years): $180
• Cost of the new phone: $800
• Net profit: $180

While you’ll miss out on the latest features, this option is the most budget-friendly. However,
keep in mind that holding onto your phone for too long will eventually lead to a device with no
trade-in value.

The Verdict:

The best time to upgrade your iPhone depends on your priorities. If you want the newest
features and are willing to pay a premium, upgrading every year is your best bet. For a balance
between cost and newness, the two-year cycle is a solid choice. And if you’re all about
maximizing savings, holding onto your phone for four years or more is the way to go.

Additional Tips:

• Carrier deals: Your carrier may offer trade-in deals that are even better than Apple’s, so be sure to check with them before making a decision.
• Consider your needs: Do you really need the latest features, or is your current phone still serving you well?
• Factor in repairs: If your older phone is starting to need frequent repairs, it might be more cost-effective to upgrade sooner rather than later.

By crunching the numbers and considering your individual needs, you can find the upgrade
strategy that’s right for you.