I can go up or down a model at any given time, as the hardware behaves as a commodity, and there is little penalty for trading, both price-wise, and restoring the settings and contents of the device. It is a good store of value, with the only cost of ownership the steady depreciation. And if you can buy below market and sell above market, extracting value from folks who are not as thrifty as you are, you can drive the cost even lower, or possibly even make a profit.
I have bought a "4" in spring 2011 (£350, sold for £40; 1 × battery replacement £10, 1 × screen & button replacement for free from a friend's junker), and a "5S" last year (£230, current re-sale value £170+). The actual cost over the five years has been £1.50/week, £79/year).
So if you had gotten an iPad 2 on day 1, I feel like you would have had a reasonably long life on the device.
Your case with the iPad 3 is a little unique. It was the first device with a retina screen and was arguably underpowered for that task. This is why apple replaced the iPad 3 with the iPad 4 just 6 months later in the same year.
The iPad 1 and the iPad 3 are both underpowered for their typical workloads. The other iPads however have stood the test of time fairly well. My iPad Mini 1 (which is essentially an iPad 2) is a little slow, but serviceable and my wife's iPad 4 still works great.
I'm not sure how that situation changes in the US, where there doesn't seem to be the same market for pay-as-you-go sims that is found in the rest of the world.
The original iPad was launched in mid 2010. In September 2012 Apple released iOS 6, which didn't run on the original iPad. Shortly afterward, the apps we used all required a forced update to their iOS6 version (which of course didn't work) and it became a doorstop. YouTube lasted a little longer than most, but eventually it stopped working too.
It's quite possible that the iPad 2 you mention has had a longer life than the original iPad, but this in no way diminishes the fact that the original iPad, a not inexpensive piece of hardware was useless for most purposes after a little more than 2 years (assuming you bought it on release, which I did not).
I could have told you that before you bought it.
It still streams Netflix great though, but the browser is starting to show its age - I can't load all webpages anymore. :(
Looks like I might need to pick up a new iPad..
That is insane. I can load all webpages on any laptop from 5 years ago. A browser doesn't become "slower". Even with bigger pages, they are still web pages, not 3D games.
It means the ipad itself is, for some reason, rendering itself slow. And you can't do anything about it because you can't hack it.
And your idea of the solution to the problem is to buy a new one ?
My god, somebody sell you a self-destructing product in order to force you to buy a new one, and you oblige ?
Anyway, plenty of machines sold then and even today are junk, so maybe replacing them is not such a terrible idea. However, I think replacing the software matters more. Linux is an excellent option for these systems in the long term. If Apple made Mac OS X available for them, it would be too.
In fact the wisely received wisdom was that Android devices would have longer useful lifespans because open source leads to higher quality software that's maintained and updated for longer, which can be customized by users so it meets their needs better. The reality that many Android devices never see a single software update and are junked up with carrier crapware and poor device drivers hidden in binary blobs still hasn't sunk home for everyone yet.
Even now when I buy a new device I think about how useful it will be and what it's support will be like for 2 to 4 years. Beyond that, there's no way to tell. When my kid's original iPad Minis get replaced, if they still work I'll probably just use them as family photo and video galleries.
These things have incredible lifetimes and also keep their resale value very well. So in terms of value, I'm not convinced that iPhones are a frivolous luxury. In my experience they're a reliable long term investment.
Is that relevant to low wage earners? I think so. If iPhones stopped getting software updates 12 months (or less) after launch and ended up in a junk drawer soon after, I don't think they'd sell nearly so well in any demographic range.