The latest Apple offering, the iPhone 16 was released to the world on September 9th, 2024 (as Digital Journal reported). What are U.S. consumers making of this next iteration in smartphone technology, including the artificial intelligence add-ons.
Around 63 percent of U.S. citizens have indicated that inflation will keep them from buying a new smartphone during the remainder of this year. This is according to polling from the personal-finance website WalletHub. The website has issued its 2024 iPhone Survey.
As well as the cost-of-living, many in the U.S. simply think the iPhone is too expensive, with 90 percent expressing the view that iPhones are overpriced. Despite the smartphone being overpriced many feel they do not have much alternative, noting that Apple enjoys a monopoly in the marketplace (a view expressed by 65 percent of participants).
On the other hand, there is a sizable proportion who want to acquire the new device. Putting aside thoughts of a ‘debt dilemma’, the survey finds that more than 2 in 5 thinks buying a new iPhone is worth going into credit card debt.
A driver for this is societal pressure and the success of Apple branding. Here 30 percent of people categorize someone who always has the newest iPhone as rich (and 42 percent think that having the latest phone is important for their self-image), against 27 percent think of them as wasteful. The marketing hype surrounding the device is winning over – but only just.
Buying a new smartphone might not be the best option for many people, observes Luis Abreu, Ph.D. – Assistant Professor, University of Kentucky.
Abreu says in a statement sent to Digital Journal: “When buying a new phone… Start by identifying the features that are most important to you and which ones you can do without… By narrowing down your options to phones that excel in the features you care about and ruthlessly eliminating those with extras you do not need, you can save money…The monthly costs for phone service can add up quickly, so it is worth shopping around and doing the math of buying a phone separate from the carrier.”
Abreu advises shopping around: “Look into different carriers, including virtual carriers like Tello, Mint Mobile, Visible, or Google Fi, which often have lower costs. While these carriers might not include the latest phones in their plans, their overall lower rates could make your total cost of owning a phone more affordable.”
Negotiating on price is also important, Abreu recommends: “If you are upgrading, try to get the best price for your old phone. Prices can vary significantly, with some places offering $30 and others up to $150 for the same model. Research different trade-in programs or resale options to get the most money back.
Ultimately, is the upgrade really worthwhile? Here Abreu states: “Finally, ask yourself if you really need a new phone right now. If your current phone still meets your needs, waiting a bit longer could save you money and give you more time to find the perfect deal.”
Simply put, is the financial stress and debt accumulation worthwhile experiencing for a product that is, ultimately, disposable?
To help people save money on their cell phone bills, WalletHub has also produced a Cell Phone Savings Calculator, which crunches the numbers on whether it’s better to buy a phone upfront or pay in instalments.
