While millions of people rush to buy the newest iPhone model every year, few consider what this purchase represents in the long term. Since the launch of the first iPhone in 2007, Apple's device has been considered a symbol of innovation and social status, but its prestige does not shine in the same way when viewed in the financial realm over time.
iPhone Price Evolution
The first iPhone hit the market in 2007, pricing its top-of-the-line model at $599 in the United States. Since then, iPhone prices have risen sharply, exceeding $1,000 for the most high-end models; Apple has justified these price increases with technological improvements, new features, and a sleeker design. As of today, the newly released iPhone 16 Pro Max 1TB, the most advanced model available, is priced at $1,599.
Gold Price Evolution
The price of gold , on the other hand, has had a different trajectory. In 2007, an ounce of gold cost approximately US$650. The long-term trend for gold has been positive. In September 2024, the price of gold will be reaches US$2,515 per ounce.
This appreciation of gold has protected investors against currency devaluation and provided a hedge against inflation. Unlike the iPhone, gold does not lose value over time, rather it appreciates over the years, especially in times of crisis.
How Many iPhones Can You Buy With An Ounce Of Gold?
The report by "In Gold We Trust" entitled “The iPhone/Gold Ratio” which compares the price of this device to the price of an ounce of gold, allows us to understand how many iPhones an ounce of gold can buy at any point in time and to analyze how this relationship has changed. For example, in 2007, an iPhone cost $599 and an ounce of gold traded at $651, the ratio was approximately 0.92, meaning an iPhone cost 92% of an ounce of gold.
Over time, this ratio has been changing. Currently, with the iPhone 16 Pro Max 1TB priced at USD $1,599 and the ounce of gold trading at US$2,515 as of the date of publication of this article (Sep-2024), the ratio is approximately 0.64, that is, 64% of an ounce of gold is required to buy the new iPhone. This means that, after 17 years, and despite the increase in dollars by 166% of the iPhone’s price since 2007, the newest and most advanced model today has a price in gold 30% lower than the iPhone from 2007.
Additionally, you get a lot more iPhone for less gold today. This is because the performance of the 2024 iPhone 16 Pro Max 1TB is far superior to that of the 2007 iPhone. This demonstrates the extraordinary power of gold to maintain, and even increase, the purchasing power of its owner.
When you value it in fiat currency, like the US dollar, the picture is completely different. Year after year, you get less and less iPhone for every US$1,000 spent.
Spending vs. Investment: iPhone vs. Gold
To illustrate the relative profitability, let’s consider a practical example: According to a study conducted by SellCell.com in 2023, 61% of iPhone users replace their iPhone every 2-3 years. Let’s then assume that a person had purchased the latest iPhone model every two years from 2008 to 2024. As a result, they would have spent a total of approximately US$9,700. However, the current value of these devices, due to wear and technological obsolescence, would be equivalent to a fraction of that amount today.
What if the same person had decided to simultaneously buy an amount equivalent to what they spent on their new iPhone in gold? Today they would have 6.56 ounces of gold worth more than US $16,500, equivalent to 1.7 times what they spent on those devices.
Year | Model | iPhone price in USD | Average Gold Price in USD | Price of the iPhone in Gold Ounces |
2008 | iPhone 3G | $699 | $872 | 0.80 |
2010 | iPhone 4 | $699 | $1,225 | 0.57 |
2012 | iPhone 5 | $849 | $1,669 | 0.51 |
2014 | iPhone 6 | $849 | $1,266 | 0.67 |
2016 | iPhone 7 | $849 | $1,251 | 0.68 |
2018 | iPhone XS | $1,349 | $1,269 | 1.06 |
2020 | iPhone 12 Pro | $1,299 | $1,774 | 0.73 |
2022 | iPhone 14 Pro | $1,499 | $1,801 | 0.83 |
2024 | iPhone 16 Pro Max 1TB | $1,599 | $2,262 | 0.71 |
Total | $9,691 | 6.56 |
*Calculated with the gold price at the date of publication of this article (Sep-12-2024 = $ 2,515 / oz)
Current value in USD* = $16,510
($ 2,515 x 6.56 oz)
If you’re looking to build a solid financial foundation, it’s essential to consider the benefits of investing in solid assets with intrinsic value like gold . The next time you consider buying a new iPhone, ask yourself if you really need it as a productivity tool, or if that money could be better invested in an asset that preserves its value over the long term. In other words, what financial position would you like to be in when the iPhone 26 is released?
Protect your savings
Aktagold's mission is to help people around the world to protect their money from the economic and financial instability of their countries of origin, by providing them with access to saving in physical gold, safely stored in high-security vaults in Canada, an option that used to be reserved only for the wealthiest ones.
Contact us and learn more about how to protect your wealth by saving in gold.
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