Would You Spend $1,000 on a Smartphone?

Would You Spend $1,000 on a Smartphone?
Have you ever stopped to think how much you would spend on a cell phone? A couple hundred? Maybe even $1,000?

Both Apple and Samsung are raising the sales prices on their upcoming releases to $1,000. The companies have said that they can justify the price increase because there are so many new features on the phones but it looks like millennials may not be buying it.

According to a recent survey polled by Coupon Follow, millennial smartphone users aren’t going to pay that. They took a look at more than 1,000 individuals between the ages of 20 and 35 in order to discover the generation’s purchasing habits. What they found may surprise you!

Smartphone Prices

If you have a smartphone it probably feels like an extension of your arm. Most people rarely go anywhere without theirs and, oftentimes, are looking at their phone pretty frequently. Millennials were around for the creation of the smartphone and have seen how far they’ve come (or haven’t).

As you may know, millennials have been singled out as a generation making some pretty good financial decisions (saving at young ages, investing early, etc.). When it comes to making decisions about a purchase, it seems like millennials are still trying to stick to a budget. Sixty-eight percent of individuals who replied to the survey said that they planned to spend $500 or less for their next phone.

If you look at Samsung users alone, 52 percent said they anticipated they would spend $300 or less on their next device. Only 14 percent of millennials said they would spend more than $700 on a smartphone. In addition to not wanting to pay more, most millennials would prefer to wait for additional discounts to purchase a new phone. About 57 percent responded saying that they would wait for discounts from the brand and 21 percent said they planned to wait on an incentive (free merchandise, etc.).

Brand Loyalty

Aside from the fact that millennials don’t really want to spend $1,000 on a smartphone, the survey found that brand loyalty amongst millennials was off the charts. Eight-nine percent of those who responded to the survey planned to purchase their next phone from their current brand (i.e. Apple, Samsung, etc.).

They won’t be willing to pay a high price for it though. Both of the largest phone companies out there (Samsung and Apple) are slating a $1,000 sale price for their upcoming devices. However, they’ll likely need to add some heavy incentives to get people 20 to 35 to even consider buying their products.

All in all, this could be a real moment of reckoning for millennials and cell phone makers. Millennials may be forced to choose between brand and budget, while Apple and Samsung may look to giving away free merchandise and discounts to get more people begin the new phones.

Personally, I wouldn’t spend $1,000 on a phone unless it was virtually indestructible. Think about it, you could make your first stock investment, start an emergency savings and even make a pretty substantial purchase for your home with $1,000. Why throw it away on a cell phone?

Would you spend $1K on a cell phone?

You may also enjoy: 

Photo: TechRadar

Enjoy Plunged in Debt?


Subscribe to get our latest content by email.

Powered by ConvertKit

Speak Your Mind