Inflation is causing many consumers to pass on upgrading to a new cell phone this year, according to a survey conducted by an online personal finance platform.
The survey of more than 210 respondents, using data normalized by age, gender, and income so the sample would reflect U.S. demographics, found that nearly two in three Americans (63%) said they wouldn’t buy a new cell phone this year because of inflation.

“Inflation is certainly a significant factor in driving down smartphone purchases, but it’s important to recognize that consumers are getting smarter about where they allocate their resources,” noted Scott Dylan, founder of NexaTech Ventures, a venture capital firm in Manchester, England.

With phones lasting longer and more affordable options on the market, inflation may be accelerating a shift that was already happening — where the days of annual upgrades are becoming a thing of the past.
Dev Nag, CEO and founder of QueryPal, an enterprise chatbot based in San Francisco, added: “It’s important to note that while inflation may delay purchases for some, smartphones have become essential tools for many people’s personal and professional lives. This necessity may lead some consumers to prioritize phone purchases even in challenging economic times.”

The trend towards keeping phones longer may accelerate due to economic pressures, potentially impacting the smartphone industry’s traditional upgrade cycles and revenue models.

Ordinarily, inflation doesn’t affect luxury items, but the iPhone is an exception, asserted Rob Enderle, president and principal analyst at the Enderle Group, an advisory services firm, in Bend, Ore. “iPhones sell into non-wealthy segments.