Even folks earning just 3 lakh a year are buying phones in the 50k‑80k range, not just for themselves but also for their families, and then they complain about inflation. Is it genuine inflation or just lifestyle inflation they can't keep up with?
This has turned into a cultural thing. In India we love to show off to relatives and neighbours – everything has to be loud, flashy and 'better than theirs'. You've seen the meme 'gareeb apni aadat se gareeb hove hai'.
I still haven't mustered the courage to spend more than 15k on a phone, even though I earn over 30 LPA.
Is a phone priced at less than half your monthly salary a good limit?
I bought a Samsung S20 FE for 50k and it ran perfectly for six years with zero repairs. Now I upgraded to an S23, which I expect to use for another six‑plus years. High‑end phones are impressive in terms of longevity. A 15k‑20k Mi or Oppo often dies or becomes obsolete in 2‑3 years, whereas a Samsung S series or iPhone feels like a device that can hold its own for years.
Maybe you should wait to buy these pricey phones until you're earning well and have decent savings.
In most cases the phone price is inversely proportional to the buyer's income. My maid, earning 10k a month, bought a 90k iPhone on a 4k EMI for two years. Meanwhile I bought a 32k phone after five years, which was less than 10% of my monthly income.
My view is that people today splurge more than our parents did. We buy expensive gadgets that we barely use and replace them every few years. If we followed our parents' frugal habits, most of us could retire by 50, send our kids abroad for studies, and even maintain a marriage fund.
Makes sense for some people who spend 8‑12 hrs a day on their phone, using it as a camera, laptop, music player, gaming console and more. I have a MacBook Pro, a 55‑inch Sony TV and a PS4, so I don't feel the need to upgrade to the latest phone (I have an S24 Ultra), but I can see why others would want it if it's their main device.
I earn close to 40 LPA and use a 30k phone. It's not that I can't afford more, I just don't need it. My wife uses an S24 Ultra, my dad has a 16 Pro Max – I bought those for them. If I ever want a new one, I'll grab it in a blink. I've never used a no‑cost EMI, but it seems like a decent option. So it really comes down to what you want, not just what you can afford. I have a cousin earning 15k a month who got an iPhone with a 6k EMI.
I agree it's lifestyle inflation, but easy EMIs just fuel it, making an 80k phone feel affordable when a 20‑25k device would have been enough for most. It creates an illusion that drags people into bad consumer debt.