A new report tells us less than 10% of Americans are buying $1,000+ smartphones
Honestly, this is pretty surprising.
What would you do with a thousand bucks? Most people would take care of the bills. Others would go on a great vacation. Another group of people might go on a big shopping spree.
But, apparently, almost no one is willing to drop $1,000 or more on a new smartphone, according to a new study from The NPD Group.
NPD put to use its Mobile Phone Tracking service, which utilizes advertising technology to track the sales of the phones. They found that the percentage of all the customers who paid for $1,000+ smartphones is very low. It’s lower than 10%. This is a bit surprising considering the number of $1,000+ phones like the new iPhone 11 Pro and the $1,500 Motorola Razr. That’s a lot to throw down for.
Under 10% of consumers are buying $1,000 smartphones, according to a new study
Brad Akyuz, an executive director and industry analyst for NPD Connected Intelligence, comments on how smartphone owners are taking a closer look at the ever-increasing prices and speaking their choices of phones.
Consumers are holding onto their smartphones for longer periods, which has presented a challenge for the smartphone market. Manufacturers and carriers are expecting 5G to help reinvigorate the upgrade cycle, but pricing could present another hurdle.
One theory behind the lack of purchases involves the development of 5G networks, which are being rolled out by major carriers. Phones that can connect to this new network are generally expensive. Along with that, 5G is only available nationwide to T-Mobile customers and in selected areas for other carriers. Instead of shelling out the cash for a 5G device, purchasing a smartphone that can connect to 4G LTE and below just makes monetary sense.
There is an interesting point in the study. NPD found that most buyers who are purchasing $1000 plus smartphones live in New York City and Los Angeles. Although, it should be noted that the results of the study did not consider discounted phones.
What do you think? Surprised by these results? Let us know down below in the comments or carry the discussion over to our Twitter or Facebook.
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