Around 59% of Americans say that tariff and inflation will keep them from buying a new phone this year, according to the personal-finance company WalletHub’s 2025 iPhone Survey, released today. To help people save money on their cell phone bills, WalletHub has also produced a handy Cell Phone Savings Calculator, which crunches the numbers on whether it’s better to buy a phone upfront or pay in installments, and much more.
Key stats:
- Impact of tariffs and inflation: 59% of people say that tariffs and inflation will keep them from buying a new phone this year.
- Debt dilemma: More than 1 in 4 Americans think it is worth taking on debt to get a new iPhone.
- Too expensive: Nearly 9 in 10 Americans think iPhones are overpriced.
- Upgrade Hype Fading: Nearly 3 in 4 people think new cell phones have lost their appeal.
- Unfair pricing: 61% of Americans think cell phone plans are not fairly priced.
- Humans Beat AI: 70% of people say they trust human experts more than AI to find them the best cell phone plan.
For the complete survey results, visit:
https://wallethub.com/blog/
“This year, consumers are holding off on upgrading their phones, as 59% of people say that tariffs and inflation will keep them from buying a new phone. When day-to-day living costs are already high, it’s hard for many people to justify an expensive phone upgrade. In fact, nearly 9 in 10 Americans think iPhones are overpriced, so Apple and other phone companies may need to consider lowering prices or offering more substantial feature differences between models to entice customers.”
- Chip Lupo, WalletHub Analyst
Expert Commentary
WalletHub’s survey found that 59% of Americans won’t buy a phone this year due to tariffs and inflation. What tips do you have for people who want to save as much money as possible on a new phone?
“As with all expensive purchases, consumers should do some research and compare prices when buying a new phone. First, consider where to buy your phone, options include your cell phone provider, discount stores (e.g. Target or Walmart), big box stores (e.g. Best Buy), the phone manufacturer, electronic repair stores, or online options. Second, investigate whether it would be worth it to change your cell service provider to take advantage of special offers. And finally, remember that many of these stores may have the previous year’s model at a reduced cost.”
Kendra Fowler – Professor, Youngstown State University
“My advice? Don’t buy a phone if you don’t need it. iPhones are still the same price ($999) as they have been for many years, yet faster, better screens, and better features. So, while inflation and tariffs are affecting other goods (which reduces disposable income to spend on things like phones), it is not directly hitting iPhones, yet, to my knowledge.”
Joseph K. Goodman – Professor, Ohio State University
Do you agree with the 9 in 10 Americans who say iPhones are overpriced? What do you think is a reasonable price point?
“Price depends on a number of factors including competition, age of the product, availability, and product advantages. The last of these, product advantages, depends on the consumer’s use of the product. iPhone’s long-standing advantages have been its easy integration with other Apple products (called the ‘Apple Ecosystem’), ease of use, strong security, and advanced features. If the interest and need on these things is strong, iPhone will not seem overpriced. The issue has become that other brands are catching up to it, making the price more of an issue. Whether or not iPhone is overpriced depends on how the consumer views these issues.”
Kevin McEvoy, PhD – Faculty Emeritus, University of Connecticut
“It’s hard to say any good is ‘overpriced’. If it is overpriced, then consumers can choose to buy other phones instead. There are many other phones on the market that are not from Apple: Samsung, Google, Motorola, Sony, Huawei (but their sales are restricted in the US), etc. There is also a new Apple 16e that starts at $599. There are also many options to buy used and refurbished phones too. Consumers might also think a Louis Vuitton or a Mercedes is overpriced, but that’s the choice of a brand. In fact, some brands do not want a reasonable price. Brands and companies don’t look for a ‘reasonable price point,’ they price to maximize profit, which is the stated goal of all these companies (we might disagree or debate the ethics of this strategy, but it is how capitalism works.)”
Joseph K. Goodman – Professor, Ohio State University
More than 1 in 4 Americans think a new iPhone is worth going into debt for. Is it ever worth going into debt for a phone? What can people do to avoid this situation?
“Going into debt for a phone is not a strong financial move. If your current phone is not operable, there are likely options to repair it. You could also consider choosing an older model or buying a used phone, both of which will be substantially less expensive than getting a newly released model. When possible, consumers should plan ahead for expensive purchases (like a new phone) and start setting aside money consistently for that purchase.”
Kendra Fowler – Professor, Youngstown State University
“Good versus bad debt depends on the terms. If you were going to sell me a new iPhone for $0 down and 0% interest for 5 years, then yes, that is good debt! That’s free money! Often the cellular carriers will have promotions that require going into debt to get the discount, which is essentially free money. These are great ways to save money, but you have to do the math, read the fine print, and make sure to always pay on time. However, if the debt requires a person to pay interest or finance fees, then it’s probably not a good idea. In general, paying interest on something that depreciates quickly, such as a phone, is not a great idea.”
Joseph K. Goodman – Professor, Ohio State University
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