Inflation is delaying new phone purchases for many Americans: study by info.odysseyx@gmail.com September 11, 2024 written by info.odysseyx@gmail.com September 11, 2024 0 comment 1 views 1 Inflation is forcing many consumers to upgrade to a new cell phone this year, according to a survey conducted by an online personal finance platform. The survey of more than 210 respondents, using data normalized by age, gender and income so that the sample reflects the U.S. population, found that nearly two in three Americans (63%) said they would not buy a new cell phone this year because of inflation. “Inflation is certainly an important factor in reducing smartphone purchases, but it’s important to recognize that consumers are becoming smarter about where they allocate their resources,” noted Scott Dylan, founder Nexatech VenturesA venture capital firm in Manchester, England. “With phones lasting longer and more affordable options on the market,” he told TechNewsWorld, “inflation could accelerate a shift that was already happening — where the days of annual upgrades are becoming a thing of the past.” Dev Nag, CEO and Founder QueryPalAn enterprise chatbot based in San Francisco added: “It’s important to note that while inflation may delay purchases for some, smartphones have become essential tools for many in their personal and professional lives. This requirement may make it a priority for some consumers to purchase phones even in challenging economic times.” “Additionally,” he told TechNewsWorld, “economic pressures could accelerate the trend toward keeping phones longer, potentially affecting the smartphone industry’s traditional upgrade cycle and revenue models.” Inflation-resistant phone Generally, inflation doesn’t affect luxury items, but the iPhone is an exception, asserts Rob Enderle, president and chief analyst. Enderle GroupAn advisory services firm, Bend, Ore “iPhones sell to the non-affluent segment,” he told TechNewsWorld “It should have eroded Apple’s brand image as a luxury brand, but it didn’t. Inflation affects middle-class and lower-income consumers much more than the rich.” Ironically, while inflation has hit the prices of many products, flagship smartphones are largely inflation-proof. “Most of the price increases were limited to premium models,” noted Max McCaskill, a staff writer WhistleoutA search engine for cell phone and Internet services. “The iPhone 16 maintains the (US) $799 starting price starting with the 2020 iPhone 12,” he told TechNewsWorld. “The $799 release price of the Samsung Galaxy S24 from 2021 remains the same as the S21. Google is the only company that bucks this trend by consistently raising Pixel prices over the past two years.” There are factors other than inflation that can discourage consumers from buying new phones. “Economic insecurity and job insecurity are more likely factors in the decision to delay buying a new phone than inflation,” Greg Sterling, co-founder to the mediaA news, commentary, and analysis website, TechNewsWorld reports. “Consumers sometimes say ‘if it ain’t broke, don’t fix it,'” it added WalletHub Author Chip Lupo. “My current iPhone 12 works fine. I’ll use it until it’s no longer supported. Then I’ll look at upgrading it,” he told TechNewsWorld. Returns the reducing feature Customers are also turning their new phones into old phones. “We have definitely seen the replacement cycle lengthen. We also saw a lot of growth in the refurbished and used segment,” explained principal analyst Ross Rubin Reticle ResearchA consumer technology consulting firm in New York City. He told TechNewsWorld, “Smartphones are a mature device category right now. “Take Apple’s announcement this week. They continue to advance on platforms, but things like camera control buttons probably aren’t going to be something that inspires many people to scream, ‘I have to have this now!’ And then trash their current phones.” “We’re seeing diminishing returns given the significant progress in model upgrades,” added NexaTech’s Dylan. “Consumers are holding on to their devices longer because improvements — whether in processing power, camera quality or software — are becoming incremental rather than groundbreaking,” he continued. Dylan notes that sustainability concerns are also starting to influence purchasing decisions. “Many consumers, especially younger ones, are becoming more aware of the environmental impact of upgrading every year,” he explained. “Software longevity has also increased,” he said, “while offering extended software support for older models, making it easier for users to keep their devices for longer without sacrificing functionality.” Self-priced phone links The survey also found that more than two in five Americans think it’s worth taking out a loan for a new iPhone. WalletHub’s Lupo was a bit confused by that finding. “I’m surprised anyone would think it’s okay to go into debt to get an iPhone,” he said. “You take out a loan for a house, maybe for a car, but for an iPhone? I think two out of five is too many.” “The willingness of some consumers to go into debt for the latest iPhone speaks to Apple’s brand and marketing strength,” added QueryPal’s Nag. “Apple has successfully positioned its products as premium, desirable items worth stretching one’s budget for,” he continued. “It reflects both the perceived quality and status associated with Apple products.” “However,” he said, “it also highlights potential problems with consumer financial literacy and marketing’s ability to influence purchase decisions, sometimes against consumers’ best financial interests.” Another survey found that 42% of Americans think having the latest iPhone is important to their self-image. Further searches include: Nine in 10 Americans think the iPhone is too expensive. 30% of people classify someone who always has the latest iPhone as rich, while 27% consider them wasteful. 65% of people think Apple is a monopoly. “Smartphones have evolved into an extension of our identity,” Dylan said. “In many ways, they are not just communication tools but markers of success, personal taste and even social currency.” “The technology we carry signals to others how connected, productive and prosperous we are,” he continued “The culture of regular upgrades, especially among the younger population, feeds into this cycle,” he adds. “Apple and Samsung have done an exceptional job of positioning their devices as luxury goods, much like designer clothes or cars, making it easy for people to link their self-image to the phones they carry.” Share 0 FacebookTwitterPinterestEmail info.odysseyx@gmail.com previous post Introducing the Azure Inventory Gateway next post Tele Marketing Executive Job Openings Across Multiple Locations in Hyderabad at SSZ INFOTECH You may also like Get to know Microsoft 365 Copilot in Microsoft OneDrive October 4, 2024 Connecting to Azure Cache for Redis with Entra ID in Azure Government October 4, 2024 Modern Charts in Microsoft Access is GA! 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