Nearly 30% of Americans Prioritize Buying the Latest Tech, Like iPhone 15, Over Paying Bills
Ahead of the release of the latest iPhone, LendingTree found that Americans prioritize the latest technology over paying essential bills
CHARLOTTE, N.C., Sept. 11, 2023 /PRNewswire/ -- LendingTree®, the nation's leading online financial services marketplace, released its survey exploring how technology is impacting consumers' finances. Ahead of Apple's event unveiling the new iPhone 15, the study found that 77% of Americans say it's important to have the latest technology products and gadgets. Further, 28% of consumers admit they'd prioritize purchasing the latest tech over other financial obligations such as rent or bills, and 26% go into debt to purchase the latest tech products, at an average of $1,492.
LendingTree also found that iPhone users are more than twice as likely as Samsung users to get a new phone when the latest version is released (9% versus 4%); iPhone users are less likely to consider switching manufacturers (52% versus 61%); and Samsung users are more likely than iPhone users to wait until their current phone breaks before purchasing a new one (35% versus 24%).
Key findings
Over three-quarters (77%) of Americans say it's important for them to have the latest technology products and gadgets. Younger generations are more likely to value having new technology, with 88% of Gen Zers and 86% of millennials saying it's important to have the latest tech.
Younger generations are also more likely to prioritize the latest tech over paying bills. Overall, 28% of Americans say they'd prioritize purchasing the latest technology over other financial obligations, with 45% of millennials and 38% of Gen Zers confessing they'd buy the latest tech gadget before paying bills.
Of those who prioritize the latest tech over essential bills, 78% admit they'd purchase the latest phone, like the iPhone 15, over paying rent or bills.
26% of Americans have taken on an average of $1,492 in debt to purchase the latest tech products, with phones (69%), computers (41%), and smartwatches (27%) fueling the overspending.
Overall, 45% of Americans would pay out of pocket for a new version of their smartphone — even if their current phones were in good condition and they weren't eligible for a free or reduced-price upgrade.
iPhone users are more than twice as likely as Samsung users to get a new phone when the latest version is released, at 9% versus 4%.
Samsung users are more likely than iPhone users to wait until their current phone breaks before purchasing a new one, at 35% versus 24%.
LendingTree's chief credit analyst Matt Schulz has this tip for consumers:
"As cool as that new iPhone might be, avoiding unnecessary debt is a whole lot cooler. If you can afford to buy it and pay it off in a month or two, have at it. If not, make a plan and take it slow. Instead of rushing to buy, start putting some money aside to help you better afford it in a few months. Even if you can't save enough to pay for all of it, what you are able to put away will help lower the interest you'll pay in the future. Remember, this isn't a one-time thing like a Taylor Swift or Beyonce concert coming to your town. These phones are going to be available for a long time, so there's no rush."
To view the full report, visit
https://www.lendingtree.com/debt-consolidation/tech-debt-survey/
Methodology
LendingTree commissioned QuestionPro to conduct an online survey of 1,949 U.S. consumers ages 18 to 77 from July 17-24, 2023. The survey was administered using a nonprobability-based sample, and quotas were used to ensure the sample base represented the overall population. Researchers reviewed all responses for quality control.
We defined generations as the following ages in 2023:
Generation Z: 18 to 26
Millennial: 27 to 42
Generation X: 43 to 58
Baby boomer: 59 to 77
About LendingTree
LendingTree (NASDAQ: TREE) is one of the nation's largest, most experienced online financial platforms, created to give consumers the power to win financially. LendingTree provides customers with access to the best offers on loans, credit cards, insurance and more through its network of over 1,000 financial partners. Since its founding, LendingTree has helped over 129 million customers obtain financing, save money, and improve their financial and credit health in their personal journeys. With a portfolio of innovative products and tools and personalized financial recommendations, LendingTree helps customers achieve everyday financial wins.
LendingTree, Inc. is headquartered in Charlotte, NC. For more information, please visit www.lendingtree.com for additional information.
MEDIA CONTACT:
Nelson Garcia
nelson@lendingtreenews.com
704-943-8208
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SOURCE LendingTree
