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iPhones have long enjoyed one of the highest customer loyalties, and the new iPhone 15 series is no exception. Although the new phones do represent a significant generational update, especially due to the introduction of USB-C, the $1,000 price tag for the Pro models is still a big financial investment. However, according to a new report from WalletHub, 1 in 5 Americans are willing to incur debt to get one of the new iPhone 15 models.
The survey included 240 online respondents in the United States, with WalletHub ensuring data normalization by age, gender, and income to accurately represent a cross-section of U.S. demographics, and raised the question of whether one should finance the purchase of a new phone or pay for it upfront. Answering this, approximately 40% of the respondents expressed a preference for paying through installments for their new phones, highlighting an industry-wide trend of consumers opting for payment plans offered by mobile carriers.
Reasoning behind this decision
Although the specific reason will differ from person to person, the survey also delved into the phenomenon known as “phone shaming,” which involves people discriminating against others based on their choice of phones. This is particularly common in the United States, where iMessage dominates as the primary messaging service, and Android users face discrimination for having a differently coloured message bubble.
Moreover, in days when both iPhones and Android easily last three years with software support and ample performance headroom, the study also tried to uncover stereotypes about people who upgrade their iPhones every year. Over 30% of the respondents described someone who consistently owns the latest iPhone model as “wasteful,” while more than 21% considered them financially well off. Additionally, almost three-quarters of the participants believed that the new iPhone models were overrated.
“Importantly, there are both psychosocial (emotional) benefits and functional benefits that come with phones. Feelings of belonging, having the latest “thing”, and self-signalling that you deserve the new product all might outweigh the psychological consequences of carrying debt,” said Jared Watson, Assistant Professor of Marketing at the Stern School of Business.