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Cell Phones Seem Cheaper, But Are You Paying More?

The 8G iPhone went on the market for $599 and was slashed down to $399 just a few months later. It's a trend that is more than common in the tech world — it's expected. Despite the lower cost (or quick price drop) of cell phones, people are still dishing out loads of cash for the hottest device.

According to new data from the NPD Group, people are actually spending more on cellphones than a year ago. Americans spent a total of $3.2 billion on phones this year, up from $2.2 billion a year earlier. The phone cost this year is about $82.8, up 40 percent from $58.95 a year ago. The thing is, it's not just the actual phone consumers are paying for — we are also paying for all the added goodies. The New York Times reports:

"Half the phones sold in the period could play MP3 music files, compared to one quarter a year ago. Bluetooth capability was on 72 percent of phones sold, compared to 50 percent a year ago. And 11 percent were those digital Swiss Army knives called smartphones, up from only 4 percent a year ago."

I am guilty of buying in to the latest devices and services regardless of price so the trend of paying more seems like a no brainer. What do you think?
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Join The Conversation
colormesticky colormesticky 8 years
I'm getting a new phone next month (when I'm eligible for a $150 rebate instead of my current $75) and for the first time ever I'm not going to just get the free phone. I'm torn between a Razr or a Centro. If I can get a good deal on the Centro I'm all over it. As for more people getting Bluetooth compatible phones, part of it might be because so many states either have or will soon outlaw talking & driving unless it's hands free. That's the main reason I'm upgrading.
lorenashley lorenashley 8 years
i don't pay my own bill so i dont know.
Lovely_1 Lovely_1 8 years
My cellphone bill is pretty cheap because I called them complaining that my sister and brother get more with Telus and PAY LESS. So every month I get $15 off automatically and they set me up with a sweet plan. And as for my phone, yes it is an expensive one but I only paid $50 for it with my 3 year contract. I want a new one for Christmas and for the ones I'm looking at I am looking at speneind $250-$400 so we will see what I can work out with that haha.
manga manga 8 years
um...this is unrelated. but I really need to know, what kind of phone is in that picture?? it looks awesome. what brand is it?
verily verily 8 years
My smart phone was free, but I had to upgrade my service to a data plan to use it. So it's less and more.
Marci Marci 8 years
My little Razr came out to $15 to buy with all the discounts offered. It's a little buggy, but I still like it. My monthly contract, on the other hand, is a little ridiculous - $70 a month.
Leopardcc Leopardcc 8 years
*discount
Leopardcc Leopardcc 8 years
I renewed my contract and with my hubby's school dicount we all got free phones.
rachelspark rachelspark 8 years
I upgraded my contract also. My phone was basically free. I had acquired all these points towards a new phone. I also got a really good mail in rebate.
Daisy6264 Daisy6264 8 years
No. I just did a upgrade on my contract. My bill has always be reasonable.
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