Summary of this article
Vijay Kedia contrasts iPhone purchase with mutual funds.
Rs 1 lakh iPhone depreciates drastically in six years.
Mutual funds could double the same investment amount.
While Apple rolled out its new iPhone 17, ace investor Vijay Kedia posted something interesting on X (formerly Twitter): "iPhone 17 is not for everyone. Spend Rs 1 lakh on this hyped phone or invest it in a mutual fund. In 6 years, Rs 1 lakh can multiply into Rs 2 lakh, whereas the resale of the phone might fall to as low as Rs 15,000. That's 15 times better value through investing."
Kedia's post made an obvious point. Whereas gadgets may give temporary satisfaction, the same amount put in investments can grow manifold in the long run. It is also a reminder that spending and investing have very different results.
The Price of Latest iPhone
The iPhone 17 starts at Rs 82,900. The high-end iPhone Air version is available for Rs 1,19,900. Despite such steep costs, interest in new iPhones still attracts young professionals and students. Many treat it as a status symbol or a necessary device.
Kedia did not question the quality or features of the phone. He highlighted the financial trade-off of buying such an expensive gadget instead of putting the money into investments that could grow over the years.
The Value of Investing
Most equity mutual funds in India have returned 15 per cent average annual returns over the long run, according to the graph shared by Kedia. Based on this, a single Rs 1 lakh investment could swell to Rs 2.31 lakh over six years.
For instance, the iPhone purchased today for Rs 1 lakh will probably be worth merely Rs 15,000 in second-hand after six years, due to depreciation. The distinction between the appreciation of an investment and depreciation of a device is vast. Kedia's illustration makes the difference obvious to everyone who is choosing what to do with their money.
A Symbol of Status
Apple releases are widely publicised events. Every new iPhone is marketed as a status upgrade one cannot live without, generating curiosity and hype. Shoppers tend to camp up from midnight outside stores and malls to be among the first to buy the latest model, fuelled by media hype and desire to belong to "that section of the society".
Kedia's post also mentions that succumbing to marketing pressures can restrict the potential of your funds. Gadgets should be weighed against long-term financial objectives. Understanding the difference between needs and wants is vital in creating wealth over time, he emphasised.
Why This Comparison is Important
For most, a smartphone is needed for study, work, and for keeping in touch. But upgrading to the latest model constantly is more a case of social pressure than actual need. Spending a lot of money on something that depreciates so quickly can limit future financial options.
Investor Warren Buffett has also warned about such an attitude. He said, "If you buy things you don't need, soon you'll have to sell things you do need." Kedia's analogy allso teaches same lesson. It is not about abstaining from spending, but about being careful about the opportunity cost of spending.
The Importance of Balance
Kedia's message focuses on the balance. A cell phone can bring short-term gratification and enhance quality of life in some sense. Meanwhile, an investment can build financial freedom and security in the future.
Smart financial planning means figuring out priorities. One strategy is to save money for investments and then spend on lifestyle options that really count. This prevents enjoyment in the present from being at the cost of security in the future.
The iPhone vs. mutual fund example is an easy yet effective method of learning how money can work for you. Putting money into gadgets certainly provides an instant pay-off, but investments build wealth for the future.
