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Posts Tagged ‘Paris’

The Economics of owning Samsung Galaxy S 3

In Finance, Uncategorized on May 31, 2012 at 5:58 pm

The Samsung launched its flagship Galaxy S 3 couple of days back in 28 countries. Talking about the smart phone and its great great features is increasing becoming one of the most talked about pub-talks. I don’t own a smart phone myself but my husband is a proud owner of iPhone 4. For last many months he is waiting eagerly for the next big thing ‘The iPhone 5’ (he even check the latest gossip on the proposed launched ……. I emphasize with him).

He is pasturing me for last one year to buy a smart phone. The launch of Samsung Galaxy S 3 tempted me to sneak peek the newest-must-own-gadget. Being finance professional, I always wonder on the economics of ownership. Alright let us begin ……

What would you choose ….. Paris or Galaxy S 3

First the let us understand straight cost of ownership of fully unlocked Galaxy S3 for 12 months:

  • 1 unlocked phone = USD 799 or Euro 645 or GBP 519 or INR 43000 (to keep it simple, I will use USD) = $ 799
  • Screen guard/pouch/accessories = $ 50
  • Insurance 12 months = $ 84
  • Average cost of new apps buy in 12 months (some of them you need, some of them you buy because it is on your friend’s phone) = $ 35
  • Data charge = $ 180
  • Total (A) = $ 1148

(Call charge not taking into consideration, you will need a phone regardless of it being smart or not)

Now let us add the cost you would ignore:

  • Productive working hours you will use fiddling your phone everyday, playing games, exploring apps and admiring photos (assumption taken on minimum wages) = 1 hour * 365 days * $7.25 = $ 2646.25
  • Total (B) = $ 2646.25
  • Assume you will sell the phone after 12 months of usage. The resell value of phone with generic wear-tear will be 40% of MRP = $ 319.6
  • COST OF OWNERSHIP = A+ B  – resell value = $ 1148 + 2646.25 – $ 319.6 = $ 3439. 65 (aaaaawwwwwww !!!)
  • Compared to this cost, if I want to take 1 week of luxurious holiday with my partner in Paris, it would be approx. = $ 2950

My husband would have chosen Samsung Galaxy S3 and I would have chosen an evening in Paris .

What would you do 🙂 ………. Please comment !!!!!

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