Around 59% of U.S. citizens recently polled say that tariff and inflation will keep them from buying a new phone this year, according to the personal-finance company WalletHub’s 2025 iPhone Survey.
These findings come out as the iPhone 17 debuts. According to Apple’s marketing speel: “Designed with contoured edges, thinner borders, and durable materials like Ceramic Shield 2 on the front, it looks — and stays — beautiful.”
- A thinner design,
- Improved displays
- Camera with 4x optical zoom
The iPhone 17 lineup, according to ZDNet, marked Apple’s first release since the Trump administration initially announced rounds of tariffs against international trade partners in the spring.
To help people save money on their cell phone bills, WalletHub has produced a handy Cell Phone Savings Calculator, which crunches the numbers on whether it’s better to buy a phone upfront or pay in instalments.
As well as the impact of tariffs and inflation, just 1 in 4 people think it is worth taking on debt to get a new iPhone. This suggests the tantalizing allure of another advancement in technology is losing its shine.
The decline in smartphone sales is attributed to several factors:
Market Growth: Global shipments of smartphones fell to 288.9 million units in Q2 2025, with modest consumer demand restricting market growth.
Chip Shortages: Ongoing chip shortages have made it difficult for manufacturers to produce smartphones, leading to production delays and higher prices.
Rising Costs: The rising cost of living has made consumers less willing to purchase new smartphones, contributing to a decline in sales.
Consumer Sentiment: There is a general lack of confidence among consumers, which has affected purchasing decisions.
Market Saturation: The smartphone market is becoming increasingly saturated, with many users holding onto their devices longer, reducing demand for new models.
These factors combined indicate a challenging environment for smartphone sales, with a potential shift towards pre-owned and refurbished devices as consumers seek more affordable options.
Value for money is another factor. This is borne out by nearly 9 in 10 people thinking that iPhones are overpriced. Moreover, there is an indication that people are less enamoured with the endless run of upgrades. Nearly 3 in 4 people think new cell phones have lost their appeal.
Linked to expenses, there are also feelings that the iPhones are simply over-proceed for what they are offering. Here, 61% of people think cell phone plans are not fairly priced. Searching for a better deal using artificial intelligence does not appear to be a favourable option since
70% of people say they trust human experts more than AI to find them the best cell phone plan.
Commenting on the findings, Chip Lupo, WalletHub Analyst says: “This year, consumers are holding off on upgrading their phones, as 59% of people say that tariffs and inflation will keep them from buying a new phone.”
Lupo adds: “When day-to-day living costs are already high, it’s hard for many people to justify an expensive phone upgrade. In fact, nearly 9 in 10 Americans think iPhones are overpriced, so Apple and other phone companies may need to consider lowering prices or offering more substantial feature differences between models to entice customers.”
