A dual band smartphone can save you thousands of dollars over the next few years, according to a new study.
The U.S. Department of Transportation (DOT) recently published a study that estimated that a smartphone can reduce the cost of getting from San Francisco to Los Angeles by $1,000 per trip, or nearly 30 percent, compared to buying a new car.
“There is a significant cost savings in smartphone connectivity,” says study author Richard Tipton, a transportation analyst at the Boston Consulting Group.
“In some cases, it’s up to 20 percent, in others it’s as much as 60 percent.”
“When you think about the price of a car and how much you’re paying to get from Point A to Point B, it really is not that much,” Tiptons says.
“When you’re talking about buying a cellphone, there’s a really strong argument for it.”
Tipton says the savings are real, but not necessarily as big as you might think.
“There are a lot of smart people out there that are actually doing it right,” he says.
The study, which was done by the University of Illinois, looked at the cost per trip to travel between the two cities on an iPhone 4S and an Android smartphone.
The price of an iPhone in California was $6,500 while the cost in Los Angeles was $1 and a half times the price, the study found.
The study also found that smartphone owners can save money on gas and other transportation costs by purchasing a smartphone for less than $10 a month.
“That’s probably a good value,” Tripton says.
But he cautions against purchasing a phone in large amounts.
“If you’re buying a phone for $20, that’s not going to work.”
Tippons is not the only one who thinks a smartphone is worth the savings.
The Washington Post reported in April that some people were paying $100 a month for a smartphone that cost just $50 a month before.
“The iPhone is a great product,” says Tiptson.
“It’s one of the best ways to get information from a phone and also to do things on the go.
If you’re in the market for a phone, it can be really affordable.”