Nearly two-thirds of U.S. shoppers say persistent inflation will prevent them from buying a new phone this year, according to a survey released Tuesday, which could hurt sales of Apple's latest iPhones.
investigation From WalletHub The survey also found that nine in 10 people believe the iPhone is too expensive.
“When everyday living costs are already high, it's hard for many people to justify a pricey phone upgrade,” WalletHub analyst Chip Lupo said in a statement.
“Apple and other mobile phone companies may need to consider lowering prices or offering more significant feature differences between models to attract customers.”
The survey also found that 27% of people see people with the latest iPhones as “wasteful.”
Apple did not immediately respond to a request for comment.
The Californian tech giant unveiled the much-anticipated AI-powered iPhone 16 at an event on Monday.
The company's new iPhone 16 will retail for $799 and the iPhone 16 Plus for $899, while the higher-end iPhone 16 Pro and Pro Max models will retail for $999 and $1,119, respectively.
But some of the new phones' AI features won't be available to users until October, more than a week after the phones hit store shelves.
Lagging AI, combined with high prices amid continuing inflation, could scare off cash-strapped customers.
The annualized inflation rate in the U.S. for the 12 months through July was 2.9%, above pre-pandemic levels. According to data from the U.S. Department of Labor:.
Apple hopes that the iPhone 16's AI features will attract customers and boost sales of the phone.
In its second-quarter earnings report last May, the company reported that iPhone sales had fallen 10% year-over-year, its worst drop since the pandemic began.
