Today, Apple announced some new iterations of their popular iPad. They also announced improvements on their smartwatch (is that still a thing, or are people over this yet?), and a new Apple TV.
Investors were apparently bored, as the Apple stock went down during the announcement. But I have no doubt that the legions of iPad minions will rush to get the latest version of the gadget. And resell the previous version at 50% of its initial price. What a great investment scheme this is… for Apple! At this point it’s like they are not selling their hardware, they’re just renting it for a regular subscription price: Every year, pay an additional thousand bucks to maintain your status.
Don’t get me wrong, I get it: Apple produces quality hardware and software. Good for them. but it also means you shouldn’t need to buy the latest and greatest every year. My wife has a 4 year old iPhone 4. It works great, and she hasn’t seen a need to buy the iPhone 5, or 6 yet. She also has a low-end $80 Android phone. Unlike her iPhone, it supports 4G. It does not take great pictures, but is overall an improvement over the iPhone 4 in her daily experience. and it cost 8 times less!
The new iPad costs more than a thousand bucks. Paying $1024 for a tablet is a good investment if you use the thing daily and plan on keeping it for years. If your expectation however is to keep it for a year, then upgrade to the next model, you’re just a sheep. Can people in the US actually afford that? Last I heard, the savings rate in this country is alarmingly low!
But oh well. Keep buying gadgets, make my ETFs happy. Enjoy your iPad, I’ll enjoy my financial independence.