64x Storage Growth in 10 Years
The iPhone 6 in 2014 started at 16GB. The iPhone 15 Pro Max in 2024 tops out at 1TB (1,024GB). That is a 64x increase in 10 years. Using the compound formula: 1024 = 16 times (1+r)^10, so r equals approximately 52% per year.
Moore's Law and Compound Interest
Gordon Moore predicted in 1965 that transistor density would double roughly every two years. Doubling every 2 years means 32x in 10 years (2^5). Smartphone storage has actually outpaced this at 64x. Both Moore's Law and compound interest are exponential functions. The only difference is the growth rate: about 41% for Moore's Law versus about 7% for stock markets.
Why We Cannot Feel Exponential Change
Compare your phone to last year's model and the difference seems tiny. Compare it to a phone from 10 years ago and it is dramatic. Exponential growth is invisible year to year but transformative decade to decade. Investing feels the same way. This year's portfolio looks almost identical to last year's, but the 10-year comparison reveals massive growth. A technology trends book reveals exponential patterns hiding in everyday life.
Your Phone Upgrades Automatically, Your Wealth Does Not
Technology improves whether you do anything or not. Next year's phone will be better regardless. But your wealth only grows if you actively invest. Monthly contributions at 5-7% for decades produce the same kind of exponential curve as Moore's Law, just at a slower pace. The math is identical. The difference is that wealth building requires you to press start.