A recent survey conducted by WalletHub revealed that almost 66% of American consumers are hesitant to purchase a new phone this year due to the impact of rising inflation. This finding could potentially have a negative effect on Apple’s sales of the latest iPhone model.
In addition to concerns about inflation, 90% of those surveyed expressed the opinion that iPhones are priced too high. Chip Lupo, an analyst at WalletHub, noted that when everyday expenses are already steep, many individuals find it difficult to justify spending a significant amount on a phone upgrade. To address this issue, Lupo suggested that Apple and other phone companies may need to reconsider pricing strategies or introduce more significant differences in features between models to attract customers.
The survey also highlighted that 27% of respondents perceive individuals with the newest iPhone as “wasteful.” This perception could further impact sales of the newly unveiled iPhone 16 by Apple, as consumers may be hesitant to make the investment in a new phone during a period of economic uncertainty.
Apple recently launched its highly anticipated iPhone 16, featuring AI technology, during a special event. The price range for the new models varies from $799 for the iPhone 16 to $1,119 for the iPhone 16 Pro Max. Despite the advanced features of the new phones, some AI capabilities will not be accessible to users until October, more than a week after the devices become available in stores.
Given the current economic conditions and the impact of inflation on consumer spending, Apple may face challenges in selling the new iPhone models. The survey results indicate that many people are postponing phone upgrades due to financial constraints. The annual inflation rate in the US has risen to 2.9%, surpassing pre-pandemic levels, according to data from the US Labor Department.
Apple has been relying on the innovative AI features of the iPhone 16 to attract customers and boost sales. The company experienced a 10% decline in year-over-year iPhone sales in the second quarter of the year, marking the most significant drop since the onset of the pandemic. With the hope that the new AI capabilities will generate excitement among consumers and tech enthusiasts, Apple aims to revitalize its phone sales and regain market share.
