Google Pixel 8 Vs iPhone 15 Vs Samsung S23 Ultra: Should you really buy a Smartphone worth Rs 1 lakh?

The advent of smartphones has transformed our lives in ways we could never have imagined a decade ago. Due to their high utility, the market for these devices is vast and constantly evolving. With brands such as Samsung, Apple and Google pushing the envelope in terms of features and technology, it’s not uncommon to find smartphones priced at over Rs 1 lakh. This piece will guide you on how to go about buying a smartphone in this price bracket.  

When you desire to buy an expensive smartphone, you must first clarify why you are willing to spend Rs 1 lakh on a smartphone. The reasons could be various — the desire for cutting-edge technology, professional need, or simply the joy of owning a premium device.  

Once you are clear about your needs, draw up a checklist of features you deem essential to your next device. This could include aspects like processor performance, camera quality, battery life, design, display quality, and storage capacity. 

Make sure to prioritize these factors as per your requirements. For instance, if you are a professional photographer, you may prioritize camera quality; alternatively, if you are a gamer, a powerful processor and a large screen with a high refresh rate may be your top priority. 

In the Rs 1 lakh range, options may include top models from Apple, Samsung, OnePlus, Google and other high-end brands. Conduct thorough research about these brands and their flagship offerings. Comparing performance, camera features, hardware specifications, and design will help you make an informed choice. 

Don’t forget to consider after-sales service and warranty periods when choosing a brand. High-end smartphones are a hefty investment, and good customer service can prove crucial in the event of unforeseen software or hardware issues. 

Additionally, look for the best deals and offers available on various platforms. E-commerce websites often provide easy Equated Monthly Instalment (EMI) options, discounts, and exchange benefits on older smartphone models. 

Lastly, but very importantly, before deciding, check out reviews and ratings given by previous buyers and tech experts on trusted tech portals and YouTube channels. 

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However, if you want to buy an expensive phone for the joy of owning a premium device, give it a second thought. 

Amit Gupta, Managing Director at SAG Infotech, says, “The prudent nature of purchasing an iPhone or any other phone for RS 1 lakh cannot be considered in isolation. Buying an expensive phone is not a big deal if you save and invest well and have done a good job of building a portfolio. However, with no savings or no regular savings, buying a Rs 30,000 phone will be the most foolish idea ever.” 

Gupta said, “What people should always ask themselves is: “Do I have savings to cater for my emergency expenses?” Cars, bikes, jewellery and many other items are usually very expensive. How quickly to repay yourself after spending Rs 1 lakh is the right way to look. Go ahead and enjoy yourself if you are spending 25 per cent of your income. Prudence and perfection should not be considered part of everything ingested. Therefore, set a saving plan and use the rest with no guilt.” 

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Value of Rs 1 lakh: When a decision is made, the alternative that is given up is called an opportunity cost. Therefore, if you purchase a costly phone of Rs 1 lakh, your opportunity cost would be what other uses could such money have been put to? 

Gupta said, “An assumption of a two-year life span for the quality of a mobile phone can cost up to an investment of Rs 1 lakh of an iPhone or other high-end brands. However, if you buy yourself a phone worth Rs 20,000 and invest the remaining Rs 80,000, at the end of two years, you will likely have anything from Rs 85,000 to 90,000. FDs can pay you about 6-7 per cent returns per annum. Mutual funds can even pay up to 12-18 per cent. In addition, a mobile phone is an amortized asset. Its value would have dropped by more than half at the end of two years.” 

“However, the opportunity cost factors are not restricted to investments alone. Paying any debt by Rs 80,000 can bring you a lot of savings. For example, suppose you pay Rs 80,000 in advance towards the education loan amounting to Rs 8 lakh at twelve per cent interest. In that case, it will result in interest savings of Rs 93,000 and over one year of reduction in your loan tenure,” added Gupta. 

Save tax with Rs 1 lakh: While this amount is not small, spending that much may not make sense if you buy a new phone after a couple of years. Hence, three possible tax-saving investments can help you build up your money. Three good options under section 80C of the Income Tax Act include the Equity Linked Savings Scheme (ELSS), Public Provident Fund (PPF) and Sukanya Samriddhi Scheme. 

Gupta said, “Among the investment options under section 80C, ELSS returns offer the highest rate. This scheme will save you Rs 30,900 in taxes if you have invested Rs 1 lakh in the first year. Additionally, after three years, with an 18 per cent return, you get back Rs 1.64 lakh, thus totalling Rs 95,000. A return on investment of 7.8 per cent is expected within 3 years for Rs 1 lakh invested into PPF, a safe option open to individuals. By adding the saved amount on tax in the first year, your total gains will increase to Rs 56,000. The Sukanya Samriddhi Scheme can give a profit of Rs 58000 within three years for an initial investment of Rs 1 lakh.” 

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Thus, investing more than Rs 1 lakh in smartphones may seem unreasonable. The decision largely depends on your needs and finances. While high-end devices offer superior performance, camera quality, and features, mid-range phones deliver considerable functionality at a cheaper price. Therefore, scrutinize your requirements and budget before making a high-cost purchase like this and keep opportunity cost factors in mind before zeroing in on one. 

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